Doing your research on your new home is non-negotiable. You have to do it. But what comes after all the research is done on the actual home and now you have to think about maintenance? One thing you will want to consider is a home warranty.  These warranties can be crucial in the upkeep of your home and helping you save a penny on those costs. So how can you find a plan that will really deliver on its promises and covers the cost to repair or replace items in your home if they break down?

First, you’ll want to understand what home warranty actually does. Home warranty is meant to cover the costs of unexpected repairs in your home. There will be either a monthly fee or a yearly fee for the actual plan. Then when a repair is needed you will pay a one-time service fee.

You will want to thoroughly vet the plan and make sure providers are transparent about their plans to make sure you know exactly what services and appliances are covered. You also want a provider that has helpful customer service and knowledgeable representatives – this will make it much easier when you need to request a repair or have a question about your plan.

Considering coverage will be a vital priority in considering home warranty. Make sure to inquire about the maximum the provider will pay for a year’s worth of maintenance and for in single repairs. Use the chart below to consider the life expectancy of your appliances as a reference point for appliance life expectancy and average replacement costs.

Make sure you thoroughly read through the plan. It seems like a no brainer however there is a large amount of information in a home warranty plan. Make sure to look out for the below points.

  • Most warranties will require you to perform the routine maintenance specified by the manual for your appliances as dictated in the instruction manual to keep the appliance eligible for the warranty.
  • Usually only normal wear and tear will qualify for repairs under home warranty. If an accident like a natural disaster happens this may not be covered by some plans so its important to make sure you understand the terms.
  • If an appliance isn’t explicitly listed in the contract it most likely won’t be included so it is important to confirm what is included and covered.

For more tips on reading a home warranty plan visit: