If you need home warranty advice? It is supposed to provide peace of mind. Review these tips and you should keep in mind when looking for a home warranty.

How much the does home warranty cost and what will determine this cost

How much the does home warranty cost and what will determine this cost

Home warranty promises peace of mind in ensuring that you do not pay a lot of money when your appliance or a system such as heating and electrical need repair or replacement. However, the home protection plan comes at a cost in form of annual premiums and trade call fee.


What does home warranty cost?


To take a home warranty, you will need to pay an upfront yearly premium whose value depends on the type of home being covered, the items and the company offering the service. The premiums are in hundreds of dollars per year with a basic coverage going for about 350 to 500 US dollars. For an enhanced plan, you may have to add about 100 to 300 US dollars.If you want additional coverage for items that are not in the basic cover such as the swimming pool or a well pump, you will have to add an extra fee above the basic coverage.
There is also the trade call fee or service call fee. It comprises the amount you are required to pay every time a service provider comes to your house to assess a problem with your systems or appliances after you call them. The amount is between 50 to 75 US dollars and it is paid for every repair job. However, if you require more than one contractor such as an electrician and a plumber, you are required to pay a trade fee for each contractor.



How is the cost determined?


Warranty providers set their own premiums and trade call fees. The price set for the basic plan is different from that of the enhanced or extended plan. The basic policy covers a number of household appliances such as refrigerators, washing machines, ovens and systems such as heating and electrical. The extended plan covers additional items. If you have a guesthouse or any other separate structure, it may not be covered by the basic plan. However, structures such as garages are covered.The type of property also determines the cost of the home protection plan. For instance, the warranty price for a condominium is different from that of a town home. Other types of homes include duplex, triplex and single family dwelling.Houses that have square footage of above 5000 tend to have their residential service plan costing more than homes that have less than 5000 square feet. Other than that, the cost is usually not affected by the size of the home.

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How to get the best out of your home warranty- use the warranty effectively

How to get the best out of your home warranty- use the warranty effectively

Getting a home warranty means spending money in form of annual fees and trade call fees. You should therefore make sure that you get the most out of it. Below are some tips that can help you to utilize fully the warranty protection.


Before filing a claim

Understand what is covered by your policy before you make a claim. This would depend on the plan you had chosen when getting into the contract. Some covers are may include particular items such as the swimming pool while others do not. Ensure that you have the home protection plan company’s phone number and your policy number at all times just in case you have an emergency. Test the hotline number before hand to ensure that you can use during an emergency. In case the company does not have it, ask them the way forward in the event of an emergency.

On repair and replacement

When an item needs to be repaired, call the customer support and inform them. The home warranty does not pay for services done by your repair technician. Remember that you need to pay a service call fee for every repair. Note that you will need to be patient when waiting for your item to be repaired because the companies take longer to send a technician unlike if you were looking for your own repair person.

Be familiar with the replacement policies. If you have an item that is not repairable, it is likely that it will be replaced with a similar item. Chances are that the replacement item is not the one you would have preferred were you buying a new one. In that case, you may opt for cash out, and you replace the item yourself, especially if you want to upgrade. However, you may get less than what the item may cost. About price, the home warranty company gives you relates to a wholesale price for an item of lesser value.

When the home warranty sends a repair technician, you still have to pay the service fee even for a small repair such as a running toilet or a dripping faucet. Therefore, it is advisable to find out how much the repair would cost from a local company before calling the warranty company. You may be surprised to find that the company will charge less for the repair than you would have paid as a trade call fee to the repair person sent by the company. In that case, it would be better to deal with small repair problems than to call the home protection plan company.


Maintenance

Have your equipment and systems regularly maintained. Keep documentation on the maintenance and servicing of the furnaces, air conditioning and the water heater. Also, maintain other maintenance records of the home. When the end of the contract approaches, analyze the state of the home, what you would have spent on repairs without the warranty and the amount you have paid as warranty costs. This will help you to know whether to renew the contract.

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Tips to help you in choosing the best provider of home warranty

Tips to help you in choosing the best provider of home warranty

A home warranty helps to reduce the cost of repairs for the appliances and systems in the home. You should therefore ensure that you get the best coverage in the market and by the best provider. Below are some tips that you can use to make that happen.

Analyze the coverage and examine the policy

Decide on what you would like to be covered by the home warranty. Do you want all the home systems and appliances covered or is it just the kitchen and laundry appliances? Examine the policies of different companies to find out what is covered. After you are decided on the coverage, compare the prices of different residential service contract companies and find out which offers the best package.

You should note that the lowest price does not mean that the company is the best. You should compare the coverage and the prices offered and choose the company that has the best combination. The cheapest provider may not cover some of the items you need covered and the most expensive may provide you with coverage that you do not need. Consider your budget when selecting the suitable plan. Some providers can give you a choice of paying lower annual fees and higher trade call fees or higher annual fees and lower trade call fees.

Verify the warranty company’s license and do a deeper analysis of the agreement

In as much as most companies providing home warranty are trustworthy, some are questionable. Once you settle on a particular company, check its licensing and history by going to its offices or from its website. Analyze the agreement provided by the company. This way, you can find out if there are charges that have been concealed. You will also learn of any service restrictions that may have not been conveyed. Ensure that you have total comprehension of the agreement. This will protect you from getting into an agreement where you will be required to pay extra charges or where the claim will not be honored due to clauses present in the agreement.

Customer service

When choosing a company to provide you with home protection plan services, choose the one with excellent customer service. This is because you will be talking to these people when filling a claim. They should address your issue in a professional way. Consider the training or the credentials that the customer representatives have. Will they be available throughout out or is their availability limited? Is there a toll free number that you can call? How long does a repair take to finish? The best home warranty provider should have a whole package. There should be excellent customer service that responds fast. The company should provide you with the coverage you need and at a reasonable price. Its warranty policy should be easy to understand and with no hidden charges and it should state the services it provides clearly without any hidden restrictions. It should also have an operating license and good reviews from its customers.

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Do you want to cancel your home warranty? Learn how to do it successfully

Do you want to cancel your home warranty? Learn how to do it successfully

It may come a time when you may want to the cancel the home warranty contract. The contract consists of a home protection plan that requires you to pay an annual fee so that you can get repair and replacement services while only paying a service call for each repair visit.To cancel the home protection plan successfully and avoid extra charges, below are the steps you need to take.

Warranty cancellation steps

Go through the policy in order to determine the cancellation and renewal terms. These terms are specific to each state. Some companies charge fees for termination before the contract term ends. Therefore, it is important that you review the terms way before you decide to terminate the contract. To be on the safe side, you can make the cancellation when the contract term approaches its end or at least two months before the renewal date.

Write a cancellation letter to the home warranty company to request it to cancel the services. In the letter, include the name of the policyholder, property address and the account number. Request the cancellation to be effected 30 days from the letter date and for you to get termination confirmation that is written. Many residential service contract providers require a 30-day notice before the cancellation of the contract. Sign the letter and post it to the company using a service that has delivery confirmation. You can also fax a copy. Remember to send a copy of the letter to the bank or credit card Company as a way to advise it to stop the payments. You should not email, fax or call the customer care for cancellation because it would be difficult to prove that you communicated to the warranty company about the cancellation.

Follow up on the cancellation

It would be wise to follow up with the home warranty company and the bank or the credit card company on the cancellation. After about two weeks of mailing the cancellation letter, call the warranty provider to check if the contract has been canceled. Make a request for a written confirmation of the cancellation to reach you either through mail or through fax. Note the customer representative who takes the call, the time and date you called. You can also use registered post to request for a written confirmation of the warranty cancellation. Contact the credit card company or the bank handling the warranty payments as a follow up on the cancellation instructions.

Check the bank or credit card statements

Once you have the confirmation of the cancellation, ensure that you check your bank and credit card statements to ensure that there are no unauthorized charges and renewals from the home warranty company. If there are charges or renewal fees after the cancellation, contact the credit card issuer or the bank to make a dispute. You may have to send the cancellation letter and cancellation confirmation letter to the bank or credit card Company to back the dispute. In many cases, the bank or credit card issuer pays the extra charge back.

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The different types of home warranty coverage

The different types of home warranty coverage

There are different types of home warranty coverage provided by the providers. The most important thing to do is to ensure that when choosing a provider, you choose the one that will meet your needs. Find out what is covered and what is not covered by the policy to prevent later disappointments. Assess the warranty in comparison to your home and see if it will be beneficial to have it or not. The warranty coverage includes those provided to homes that have been newly constructed, those that are pre-existing and to the home sellers.

Warranty to the new homes

In many states, it is a requirement for contractors and builders to provide warranty for new homes. This is in order to assure the owner that in case there are repairs or defects, for a period of up to ten years after the construction, then it will cover the replacements and repairs. The condition is that the repairs and defects should not have occurred due to the fault or negligence of the owner. The home warranty covers the materials used and the construction workmanship. It also covers the performance of systems such as the electrical, HAVC and plumbing and the structures overall integrity. The specific requirements that should be met are monitored by the state concerned.

Warranty for buyers of preexisting homes

If you are buying a preexisting home, you can choose to buy the coverage of a home warranty. The home protection plan covers replacement or repair costs that may be incurred on the appliances and systems. Some of the appliances covered are dishwashers, refrigerators and ovens and the mechanical systems covered are electrical, plumbing and heating systems. The warranty covers the items for one year after the purchase date, with the cost of the repair and replacement being settled by the provider with the owner only paying a small service fee.

Warranty by home sellers

Most sellers include a warranty on the home they are selling. The seller can pay for the coverage or can request the buyer to pay part of it. Having a home protection plan has its benefits to the seller because most buyers prefer buying a home with a warranty. This can help the seller to sell it fast especially if the market is tough. Due to the protection plan, the seller can also get a high price while also enjoying relief from obligation in case repairs and replacement of appliances and systems are required after the sale. The warranty can be bought directly from the provider, or through the real estate agent.

When buying a home warranty, you should choose the one that suits your needs and from a company with a good reputation. This will help to prevent disappointments later on. The companies provide different coverage and you should analyze what a particular company cover before signing up with them. There is the basic plan and if you would like to have more items covered, you can opt for extra coverage by paying extra. Trade call fees also differ for each provider.

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