Understandably, many people get anxious when it comes down to choosing whether or not to get a home warranty. People are often concerned about purchasing the right warranty, so you aren’t overpaying. But ultimately, they don’t want to purchase something that won’t offer the assistance they need, when they need it. If you are in the process of trying to decide whether or not a home warranty is worth the cost, allow us to help.

What is a Home Warranty?

First, to know whether a home warranty is worth the cost, it is important that you fully understand what a home warranty is. Some people tend to get a home warranty and home insurance confused; however, warranties and insurance have different uses. While a home insurance policy can help you recover losses from damages such as fire or flood, a home warranty covers any damages to your home and appliances for a determined period. When you’re moving into a new home, you may not know how well the previous homeowners took care of the appliances in the home. Therefore, purchasing a home warranty could cover any repairs or damages that happen within a set period.

What does a Home Warranty Cost and What Does it Cover?

A home warranty will cost anywhere from $400-$900 annually, but there is also usually a $50-$100 service fee every time you file a claim. It cannot be overstated that you must read the fine print to be clear on what the warranty covers. A home warranty will cover things such as roof or window leaks, problems that may arise with a pool, faulty HVAC or electrical systems, plumbing issues, and appliances. However, the fine print will give you details on the limitations of the warranty and service turn-around time.

Beware of Common Pitfalls with Home Warranties

  • Home warranties include a lot of fine print regarding “non-covered” items, which the contractor will charge you for directly. For example, if you’re experiencing air conditioning issues, most plans only cover a portion of refrigerant or none of it at all. This can be very expensive if you have an older system with a discontinued refrigerant. Many companies charge $200 or more per lb for R22.
  • There is no urgency with home warranty service providers to get the service done. Service providers’ contracts require them to contact you within 24 hours and service within 3 business days. As you can imagine, this waiting period can be difficult if you live in San Antonio where it can be 105 degrees on any given summer day.
  • Contractors of home warranty companies are incentivized to submit the cheapest bill to the home warranty company. To resolve the issue with the lowest cost, many contractors will use inferior products and cheap labor to be able to turn a profit. Many systems are “patched” to keep them running when components or complete systems should be replaced. This leads to uncomfortable homes and high utility bills, or sometimes even unsafe equipment.
  • Your annual or monthly home warranty fees increase as you submit more claims. In the long run, it makes more sense economically to hire a contractor who you trust and can develop a business relationship with. At Air Authority, A Riteway Service Company, we have had many clients for years. Our clients know our relationship is important to us, and we’ve worked hard to establish their trust and loyalty.

If you are interested in learning more about other tips and tricks for your home, visit us at Air Authority, A Riteway Service Company today!

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