Specifics vary based on the company and plan, making it all the more important for mobile home warranty customers to understand the terms and conditions of their plan.
Contract Terms
Although some companies offer monthly contracts, the most common contract length for a home warranty plan is one year. If a customer wants to terminate their contract early, many home warranty companies charge a cancellation fee.
Choice of Technician
While some companies allow home warranty customers to hire their own technician (usually with preapproval), many require the use of one of their technicians. While many customers appreciate the option to choose their own contractor, it can be helpful to have a home warranty company’s help, says Tami Lambie, a real estate educator and managing broker with Woods Bros Realty in Lincoln, Nebraska.
“Many times, experience is based on location. In a major metropolitan area, providers are easier to find. In some of the rural areas, it becomes more difficult for service,” Lambie tells Forbes Home.
Service Fees
The service fee is the amount that home warranty customers pay to have a claim addressed at their home. Among the companies we reviewed, standard service fees are between $65 and $150 per service call. Some companies allow customers to choose their service fee tier, which can affect their monthly plan rate. Other companies just have one set service fee rate.
Payout Limits
It’s a common misconception that home warranty companies will cover all repair and replacement costs. In reality, the fine print should outline the home warranty company’s coverage limit. Some companies place an overall annual cap on how much they will pay out for one plan and then there may be additional category caps, such as $500 for dishwasher repair in one year.
Claims Process
Home warranty companies generally make the process of filing a home warranty claim simple. As Lambie explains, “Most providers have an app or online service you can use to file the claim. This has streamlined the entire process.” The harder part is navigating what documentation the home warranty company may require to approve a claim. Some companies necessitate turning over maintenance records or other information.
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