After you opt for a home warranty, you have to decide whether to renew when it ends. We discuss things to keep in mind before you renew home warranty.
You have completed the entire home-buying process and are now settled into your new home. Months have gone by, and everything is fine.
One day you come home and want to have a cup of coffee. At that moment, you hear a bang. Your electricity socket, which powered your coffee maker, just malfunctioned. As you move on and want to have cold water from the refrigerator, there is bad news waiting there. The refrigerator has stopped working.
It's at that very moment when you find yourself questioning, "Did I invest such a significant amount of money and purchase this property for these exasperating situations?" Dealing with various home repairs and maintenance tasks entails sourcing dependable professionals to provide the necessary services and also covering the associated expenses.
Would you like to sidestep all of these challenges and experience a sense of tranquility? You can do this by taking proactive measures and opting for a home warranty plan.
This is a service contract between a homeowner and a home warranty company to cover the damage to specific home appliances and systems. The home warranty company covers the damage and malfunctions caused due to natural wear and tear.
When you experience something wrong with a covered home component, you can file a claim. Once you do, the warranty company will take care of repairs, maintenance, and (if needed) replacement.
The responsibilities of the home warranty companies include arranging a licensed service professional and bearing the cost of service.
Some of the common home warranty coverages are:
If you have a question about whether you want home warranty coverage, it can be answered after a home inspection. That is because you will know about the health of your home components to know if a home warranty is needed.
But complications can arise once the contract is about to end, and you have the choice of whether to renew home warranty or not. Let’s discuss the factors of renewing your home warranty and the reasons why you can switch to a new home warranty provider.
Learn More: Types of Home Warranty Coverage: Appliances, Electrical, Plumbing, HVAC
When your current home warranty contract is about to expire, and the clock starts to tick, you need to decide if you will renew your home warranty. Here are a few questions to ask yourself and considerations to think about when making a decision.
What was the service claims pattern when you had home warranty coverage? This will help you identify if your home components actually need home warranty coverage or not.
Having frequent service claims will suggest that you might want to renew home warranty because it is proving valuable.
How old are your home appliances and systems? Older home components will be more prone to wear and tear. If that is what you have, you might want to renew home warranty plan.
Take a peak in the past and look at the service claims you have made. Now calculate the cost of repairs you would have had to bear if you did not have a home warranty. This will give you an estimated amount you have saved.
If home warranty coverage is large savings, you have reasons to renew home warranty.
Once your home warranty plan expires and you are thinking of moving, you might not want to renew home warranty.
However, if you want to attract home buyers when selling the home, you must opt for a transferable home warranty. This can help you make a quick sale.
Sometimes, a home warranty is not about saving money. It is worth renewing if you are getting peace of mind by having a home warranty.
That was all about whether you needed home warranty coverage for your property or not. If you have established that, “Yes, I need coverage,” your next question should be, “Do I need to renew home warranty plan with the same company?” The answer is NO.
Before making a call, here are the questions you can ask yourself about whether to switch home warranty providers.
From the time you filed a claim to when the home warranty company sent a representative or serviceman to your doorstep, how much time did it take?
If you had to wait for a long time, that is a sign of the home warranty company not being good enough and for you to explore other options. But if you are happy with their response time, it would be the right thing to renew home warranty.
Having a lot of your claims denied can be frustrating. The level of frustration increases if the home warranty company does not give you a reason for why the service claims are being denied.
If that is happening to you, this is a good reason to look for another home warranty company.
When your current home warranty plan is about to end, do a general sweep of the home warranty providers. Research about their
If you have a better and more reliable option, you can think about switching.
What do you prefer?
Option 1: Pay extra dollars and ensure your home components work fine.
Option 2: Saving money but having the home components consistently malfunctioning and deteriorating even after the service.
You would most likely want option no. 1, which would be the way to go. So, if the current home warranty company offers option no. 2, you might want to make a switch to a different one.
Every home warranty provider offers a different set of coverage limits which may impact your coverage. If you think the coverage limits by the home warranty provider will cause trouble, you might want to explore other companies and their coverage limits.
When you find a home warranty company with the coverage limit you can work with, you can opt for their home warranty.
This is all that goes into your decision of whether to renew home warranty or not. We started by discussing the factors to consider when your home warranty ends, followed by talking about the question you need to ask yourself before changing home warranty companies.
We have also discussed how coverage limits can be a vital factor when considering switching to a different home warranty provider. You can better plan for your repairs and maintenance when you are aware of the coverage limits.
If you are looking to switch home warranty companies, explore the home warranty agents and companies listed on our platform.
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