Before jumping into a home warranty–get comfortable with the basics. This article describes the rudimentary basics of home warranty plans.
First, a home warranty is a “residential service contract”. It is a CONTRACT. Therefore, it is important to be aware of what the contract says before buying it. I would ask for a sample from the company, or download one directly from there website. Now, these things are not easy to read, but if you really want to know what you are getting into–there is no better way than actually reading the contract. And, some of the coverage might surprise you…better to be surprised BEFORE you buy it than AFTER you buy it…
Second, for each service request, there is a “trade call fee” due at the time of service–even if the repair is denied. Typically, these trade call fees range from $55 to $75 per call. You pay them based on the trade and the call….in other words, a plumbing call with 3 plumbing problems included at all the same time would be one trade call fee. But, a plumbing and an appliance call would be two different trades–therefore, two different trade call fees would be due.
Third, home warranty plans only cost about $350 to $400 per year and cover a bunch of different systems and appliances. So, don’t get your hopes up–not everything will be covered every time. I am convinced that a good home warranty plan from an honest/fair dealing home warranty company is a great way to manage your home repair budget. For example, even if they deny a claim, paying $60 for a diagnosis is a lot cheaper than paying retail rates (which can be over $100 easily). If your A/C breaks, the retail prices for A/C repairs and replacements are HUGE…a typical HVAC system costs approximately $6,000 to $8,000…so getting good coverage in place is important.
I hope the basics got you interested in learning more…check out our other articles for more information on home warranties…and check back in our site from time to time to see the latest rankings.
I am looking to buy this insurance the first time. I found your website informative.
Thank you.
Regarsd,
Fusheng Wang
Where is the article about service?
HSA did not return any phone calls they said they would they did not have information in a timely manor and when they learned that I was pregnant and living in an 85 degree house and said they would move this to top priority we saw no increased action or follow-thru..All in all we are highly disappointed in HSA and will not recommend this company to anyone.