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Purchasing a home warranty, though, can help alleviate some financial burden new homeowners face when a major appliance or home system goes out. Yes, you'll pay for a warranty upfront, but the savings could be worth the added expense.
Home warranty cost Another big factor in deciding if a home warranty is worth buying is its cost. Basic coverage can start at about $300 and go up to $600 or more. Some home warranties charge for a service call, such as $75 or so, while others allow unlimited service calls.
Are Home Warranties Worth the Cost? In some cases, a home warranty can help you save substantially on expensive home repair services. However, if the warranty doesn't cover your claims, or you don't need any repairs during the warranty period, you may feel that you wasted money invested in a home warranty program.
Best for Coverage Options: American Home Shield American Home Shield has been in business for nearly 50 years. It's the largest, most-chosen home warranty provider, and it pays out more service requests than any other home warranty company. The company offers several plans.
A home warranty costs between $350 and $600 on average. According to BankRate.com, most home warranties are around $400 for basic coverage, but cover over $20,000 worth of a home's systems and appliances.
Generally, most home warranties do not cover pre-existing conditions, unusual wear and tear, improper installation or maintenance, code violations, items typically covered by home insurance, commercial-grade appliances or items still covered under the manufacturer's warranty.
Options for Buying a Home Warranty After Closing Your home can be covered by a warranty anytime, whether you've lived in it for a few months or several years. And your coverage options should remain the same, as well.
Step 1: Verify your home warranty documents. Step 2: Make contract with your home warranty company. Step 3: Get the problem re-estimated by a third party. Step 4: Pursue the warranty company's appeal process. Step 5: Approach Better Business Bureau (BBB.)
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