How to Buy a Home Warranty?

Want a clear guide on how to buy a Home Warranty? We got you!

Home warranties are an excellent way to protect your home from unexpected repairs and expenses.

After all, there’s always the possibility that something could go wrong with your home, no matter how well you take care of it.

Having a home warranty would ensure peace of mind knowing that if something does go wrong, you’re covered. Keep reading to know more about how to buy a home warranty.

How to Buy a Home Warranty?
How to Buy a Home Warranty?

What Is a Home Warranty?

A home warranty is like insurance that covers certain repairs or replacements that may need to be made to a home.

This can include repairs to appliances, wiring, plumbing, and other systems in the home. 

Home warranties are typically offered by homebuilders when a new home is purchased or by homeowners associations to maintain common areas.

Home warranty cost depends on the size and age of the home, as well as the coverage that is included.

Most policies cover major appliances and systems in the home, such as the furnace, water heater, and air conditioning unit.

They may also cover repair or replacement costs for roofing, siding, and windows.

Read: Is Home Warranty Worth It?

Read: How Do We Review Home Warranty Companies?


5 Steps to Buying a Home Warranty

You know what a home warranty is; now, you may be curious to know how to go about buying one. Here are five steps to take when purchasing a home warranty:

Step 1: Determine What You Need to Cover

When purchasing a home warranty, the first step is to determine what you need to cover.

This will vary depending on the age and size of your home, as well as the coverage that is included in the policy.

Most policies cover major appliances and systems in the home, such as the furnace, water heater, and air conditioning unit.

They may also cover repair or replacement costs for items such as siding, windows, or roofing.

It’s pertinent to read through the fine print carefully to make sure that you’re aware of what is and isn’t covered. This will help you decide which policy is best for you.

Step 2: Compare Quotes From Different Companies

Once you have learned what you need to cover, the next step is to compare quotes from different companies.

Home warranty policies can be purchased through home insurance companies, homebuilders, or homeowners associations. 

When comparing quotes, be sure to pay attention to the deductibles and coverage limits. These can be different depending on one company to another.

Step 3: Choose a Deductible That You’re Comfortable With

The deductible is one of the most important factors to consider when choosing a home warranty policy. The deductible is the amount you will have to pay out-of-pocket before the policy kicks in. 

Deductibles can vary from a few hundred dollars to several thousand dollars. It’s important to choose a deductible that you’re comfortable with so that you’re not stuck with a hefty bill if something goes wrong.

Step 4: Read the Fine Print

Before purchasing a home warranty policy, be sure to read the fine print. This is where you will find all the details about the coverage, including what is and isn’t covered. 

It’s important to understand the policy before purchasing it so that you’re not caught off guard if something goes wrong.

Step 5: Purchase the Policy

Once you’ve compared quotes, chosen a deductible, and read the fine print, you’re ready to purchase the policy.

Home warranty policies can be purchased through home insurance companies, homebuilders, or homeowners associations. 

Be sure to keep your policy in a safe place so that you can reference it if something goes wrong.

Read: How Much Does A Home Warranty Cost Per Year?


Final Thoughts

Your home is likely one of the most expensive purchases you’ll ever make, so it’s important to protect it. A home warranty can help to do just that.

If you’re in the market for a home warranty, be sure to follow the steps outlined above. This will help you find the best policy for your needs and budget.

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