Home warranties are very valuable assets to any home owner, but figuring out what type of home warranty coverage you should purchase can be tricky to figure out. Home warranties have many different variables depending on what type of home owner you are, your property value, cost of the policy, and which company you choose to have your warranty services through. It is important that you know that there are different types of policies for new homeowners than there is for someone who has owned their home for more than 90 days. There are also different home warranties for home buyers and sellers. You must also be aware that simply because you purchase a home warranty does not mean that all of the things that a home warranty can cover are covered by the policy you bought. Know what your potential policy excludes so that you do not choose the wrong one.
Know What Kind of Home Owner You Are
In order to know what kind of home warranty you should choose, you should first know that there are different types of warranties depending on what position is as a homeowner. If you are a new homeowner, there are a few different options for you. Oftentimes you can have the seller of the home include a home warranty in the closing costs. If this is the case, the seller may have what is called a seller home warranty that covers the costs of any repairs that need to be made while the home is on the market and can be transferred over to the buyer once it is purchased. There is also a buyer conversion warranty that is transferred from the buyer to the seller that is effective immediately on the day of closing.
Know What Kind of Policy You Need
If you do not have an agreement with the seller during closing you can also get a buyer direct warranty that either the buyer or the agent of the buyer can procure or their client that also becomes effective the day of closing. When you have owned your home from more than 90 days, you can get a simple homeowner warranty. Should you need to renew an existing warranty then you will need a renewal warranty contract. Knowing which category you fall under will make choosing coverage and a provider much easier.
You Get What You Pay For
When you are looking at home warranties, it is imperative to know that coverage will vary from company to company and that cost will vary on whether or not there are exclusions to your policy. No policy is limitless so you must know what you need coverage of the most and purchase a warranty that covers the things you feel are most important. If you want to cover all of your bases, your premium will be greater, but so will your peace of mind.
Selecting the right home warranty is very important. You should compare and contrast several policies from different providers. The easiest way to do this is to know what kind of policy you need, and what coverage is most important to you.