Tips for Service Contracts (Home Warranties)

Do your homework BEFORE buying a service contract. Understand the "Terms and Conditions" of the contract, especially its limitations.
The key points to consider are:
  • The reputation of the agency
  • Are you required to use a certain servicing organization
  • Does the agreement contain a service repair cost "deductible" clause
  • Are you required to get second opinions or price estimates before repair
  • What is the contract renewal rate
  • What repairs are not covered
Ask plenty of questions before purchasing and you will prevent unwelcome discrepancies at a time when you would least like any additional problems.




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