Helping Your Clients Choose A Home Warranty: Price Isn’t Everything
September 14, 2021
Among the many decisions that homeowners must make during the homebuying process, choosing a home warranty, whether offered by the seller or purchased by the buyer, is among the many decisions that homebuyers must make. If offered by the seller, the buyer may have some say so in choosing the warranty company, given that some contracts only specify a dollar amount for the warranty rather than naming a specific company. Even still, just because a home warranty company offers a better price than their competitors, does that mean it’s the best choice for your client? What should buyers keep in mind when choosing a home warranty company?
What amount of coverage is needed?
Depending on the appliances you have and their age, this will be a key factor and choosing what level of warranty coverage your client will need. A home warranty is not insurance, so it should not be expected that you will find a company that will cover an appliance if it suffers damage from natural occurrences or other situations. Home warranties tend to focus more on the functionality (or lack thereof) of the appliance. However, some coverage levels differ from one warranty company compared to another. While some may be quick to repair the item or to replace it at full cost, others may not be as quick. It’s important to fully understand the coverage provided by your warranty company.
What reputation does the warranty company have?
Though a warranty company may have the best commercials and advertising, this may not always translate into them offering the best service. Are there sites available to see what comments and reviews from their customers say? Are there sources available such as consumer and industry reports? Have other agents had success or failures with such companies? It’s good to do your research and have more than one or two companies available to provide as recommendations to your customers. Sometimes, your own experience with a company can go a long way in deciding if you will recommend them to your clients. Were they responsive when placing the warranty order? Was the process easy? Did they keep any promises they may have made?
Your clients trust you, so be sure to give them the good, the bad and the ugly when recommending a home warranty. After all, price isn’t everything when choosing a home warranty.