Home warranties are intended to be insurance policies to protect against home system breakdowns. Prior to purchasing a home warranty, obtain a copy of the warranty to review and ask questions about coverage. Consider the following:
- Just like every insurance policy, warranties have exclusions. Determine what exclusions apply. For example, bathroom plumbing may be warranted, but the steam room or jacuzzi may be excluded.
- Give the warrantor a specific example of an expensive repair, e.g., a roof leak, and ask what is and is not covered under warranty.
- Ask about deductibles (can range from $75-$150) and what they apply, e.g., labor, parts, and service calls.
- What labor, material costs, and types of components are covered? For example, for a repair, does the warranty require Original Equipment Manufacturer (OEM) parts, or does the warranty allow non-OEM, aka remanufactured parts or components?
- Ask the warranty company who their current local vendors are and how many they have in the area. This will give you an idea of how many are available for a community of a given size and how long you may have to wait to have a diagnosis and repair. A bit of online research about the vendor or home warranty company could help you avoid a predicament where the warrantor or vendor isn’t cooperating as promised under warranty.
Generally, home warranties, on average, cost about $500/year. Shop around and ask a general contractor or property manager for a few recommendations.
The information provided does not, and is not intended to, constitute legal advice; all information is for general informational purposes only. This information may not constitute the most up-to-date information. The links provided are only for the convenience of the reader. A. Ferraris Law, PLLC, and its members do not endorse the contents of third-party references.
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