How to Personalize Your Home Warranty Plan Affordably?

Have you considered getting a warranty on your home but aren't sure how to do it without it costing a fortune? Here are some suggestions from a reader on how you can do just that.

Are you thinking of purchasing a home warranty? When doing so, consider purchasing optional coverage for various systems in the home. This is your residence and your most costly asset. Any protection you purchase is beneficial, but you can never have too much protection. What types of additional coverage should you consider?

Comprehensive Coverage

Some homeowners want to know they are covered regardless of what goes wrong in their homes. For this reason, they choose the most comprehensive plan available. Plans of this type cover expenses such as the handles and hinges on appliances, the cost of hauling and disposing of a heating and cooling system, and coverage for the fire alarm system. This ensures the homeowner will only have one company to call when anything goes wrong in the home.

However, the homeowner must know any dollar limits imposed on the repair and replacement of covered items. Insurers put these limits into place in standard home warranty contracts, and the limitations extend to a comprehensive coverage policy. However, the limits may be higher with this type of plan. The homeowner needs to review the terms and conditions of the policy they are looking to purchase to see if this is the case. The cost of protecting your home may be less than you imagine when you choose a comprehensive plan.

Coverage for the Washer and Dryer

Most home warranties don't cover the washer and dryer in the home. However, the insurer may offer a separate policy or rider to cover repairs and replacement of these appliances. The policy typically covers all components found on these appliances other than what is explicitly excluded. Furthermore, it puts limits on how much they will pay out for repairs and replacements, and this varies by the home warranty provider. Homeowners must consider the average cost of repairing a washer or dryer to determine if they need this coverage.

Nevertheless, the homeowner must review the policy carefully. For instance, many policies won't cover the repair or replacement of the door glass, filter screens, and soap dispensers. Technology convenience items tend to be excluded from these policies, and most insurers won't cover any damage to clothing caused by the appliances. It falls on the homeowner to know what is a covered repair and what is excluded.

Luxury Coverage

A person might not wish to have additional items in the home covered by their warranty. Rather, they may want to increase their coverage limits, and a luxury plan allows them to do this. With this plan, they get comprehensive coverage for the major appliances in the home so they know they are covered regardless of what goes wrong. However, homeowners need to know exactly what they are getting.

People often assume the luxury plan will provide them with additional coverage. Although this may be the case with certain providers, other providers increase the dollar amount of coverage. They don't extend the coverage to include items not included in the original warranty. This is why it is necessary to read the warranty policy fully to understand what is and is not included.

Plumbing and Electrical Coverage

Nothing is more frustrating than a plumbing or electrical issue in the home. The components of these systems tend to be hidden in walls, under floors, in attics, or in the crawlspace of the home. Finding the source of the problem presents a challenge, and the problem must be fixed once it is located. With plumbing and electrical coverage as part of a home warranty program, a homeowner has peace of mind knowing the problem will be addressed by professionals in a timely manner.

Consider adding additional coverage to your home warranty plan. Doing so provides you with peace of mind, knowing you have done everything possible to protect your investment. The cost of this coverage is easily offset by the protection you get for items throughout your home.

Penniless Parenting

Mommy, wife, writer, baker, chef, crafter, sewer, teacher, babysitter, cleaning lady, penny pincher, frugal gal

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