How to Control Unexpected Homeowner Costs

A Home Warranty plan provides qualified service people to address your specific problem. At the moment when you might be in the middle of a crisis, and time may be critical, you can call one number instead of searching for a repair person online or in the phone book. Home warranty plans work like health insurance policies, financially protecting you from an unexpected catastrophe. Although some people use them only when buying or selling a house, having a regular plan can help you control unexpected homeowner costs.

Things You Will Need

A computer

Step 1

Decide if a warranty plan is a wise choice for your circumstances. How old is your home and your appliances? While there is no way to know when an appliance will break down, if you own a newer home, the chances are less likely that something will go wrong. In that case, maybe you can afford to wait a few years to buy a warranty plan. Typical plans include heating, plumbing, electrical and appliances. But you can also add on things like a pool, roof, air conditioning, electric garage doors and more.

Step 2

Start your search online for a home warranty plan provider. This is where you can get a lot of free information from the comfort of your home. Most companies require you to fill out a simple form. When it’s received, one of their agents will phone you and discuss their services. Resist any hard-sell techniques or pressure to sign. Don’t sign with a company until you are able to research at least two other plans.

Step 3

Talk to neighbors. Ask them to recommend a provider if they have personal experience with one.

Step 4

Pay attention to the number of services calls allowed during the term of any contract. Some companies offer unlimited requests, others have clear limitations.

Step 5

Look for a company that provides 24 hr. service online or by phone so you can request service as soon as the problem occurs, even if it happens in the middle of the night.

Step 6

Compare costs and plans from different providers. Determine which best suits your needs and your budget. Read a contract thoroughly before signing up.

Tips & Warnings

* A Homeowners Warranty should not be confused with Homeowners Insurance.