# What to Know About Home Warranties and How to Find the Best One Photo by [Naomi Hébert](https://unsplash.com/es/@naomish?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText) on [Unsplash](https://unsplash.com/s/photos/new-home?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText) Home warranties can be confusing, but it's worth taking the time to understand what you're signing up for. Join [Annette Yorks Group](https://annetteyorks.com/) to learn why you might need a home warranty, how to select coverage, and the ways to streamline the process if you require service. ## Why Do You Need a Home Warranty? When you buy a home, home warranty coverage is often a default selection [in your purchase agreement](https://www.adobe.com/sign/hub/document-types/components-of-real-estate-purchase-agreement). But why do lenders and realtors recommend a home warranty, and what is it even for? Purchasing a home already involves [expenses beyond the mortgage itself](https://www.creditkarma.com/home-loans/i/fees-when-buying-home). Most loans require mortgage insurance, then there are property taxes, homeowner's insurance, hazard insurance in some areas, and more. But a home warranty covers more than the property or your belongings; it is a service contract for home systems and appliances. For example, depending on the policy, a home warranty might cover: - Your HVAC system
- Household appliances
- Garage door opening systems
- Electrical systems ## Determine Coverage Needs Deciding what type of coverage you need in a home warranty will depend on a few factors. One factor is how many and what type of appliances your property has. But another is the age and condition of your home and its systems. A good rule of thumb is to [check your home inspection report](https://www.annetteyorks.com/10-home-inspection-issues-red-flags) for any possible red flags before signing up for warranty coverage. There may be existing issues, or the seller could have warranties on appliances or systems already. But if not, [you may find out quickly that it's worth it](https://www.ahs.com/home-warranty/are-home-warranties-worth-it/) to enroll in a warranty program that covers your home's aged appliances. You never know which items may need repair as soon as the sale goes through. ## Seek Multiple Quotes (and Compare Prices) Like any other home product, warranties come in all shapes, sizes, and affordability levels. Seeking multiple quotes will allow you to find the best deal with the most thorough coverage. Prices can vary widely, especially if you piece together coverage for specific home systems or appliances, but the [average cost for a home warranty](https://www.experian.com/blogs/ask-experian/are-home-warranties-worth-the-cost/) is about $400 per year, per Experian. ## Check Online Reviews to Find a Good Fit Many home warranty companies offer similar coverage and affordable prices. But another crucial factor is how the company handles claims when you require service. To find out whether a warranty agency is a good fit, check online reviews and customer experiences. For example, sites like Google My Business [let consumers leave honest reviews](https://www.business2community.com/online-marketing/how-do-i-review-a-business-on-google-02430683) for businesses. Once you narrow down the options, calling for a quote or discussing the details of a policy may also illustrate how attentive customer service is. You can (and should) also ask questions about how service calls function. ## Read the Fine Print Carefully As with any property or product contract, [reading the fine print](https://due.com/blog/how-reading-the-fine-print-and-terms-of-service-can-save-money/) is vital when buying home warranty coverage and can even save you money. The detailed information in your policy should outline how the warranty works, what is covered, and how the service call process works. Understanding the span of the coverage, as well as any limitations, will dictate the overall value of the warranty. For example, some warranties may use specific service agents, which could delay the response time depending on availability. Other warranty companies may limit service to certain areas based on travel time and other factors. Reading the fine print should give a better idea of what those limitations are, if any. ## Keep Home Warranty Info Organized The worst time to start searching for your warranty information is when something in the house breaks. While [maintaining hard copy records](https://www.deeds.com/articles/new-homeowners-document-checklist-storage-plan/) is a must, having a digital copy can also be useful. For easy access when you need to make a claim, create a new PDF with an extract PDF tool. Select all the relevant pages you need, then save them as a new document on any device. For many property owners, a home warranty is a worthwhile investment. However, customizing coverage and choosing a company with proactive customer service are key points for making the investment worth it. Share This Post
