- Knowledge is power

August, 2007

When it comes to choosing a home warranty provider Here are some important things to consider when comparing home warranty providers: Coverage: A good comprehensive home warranty contract will include the most important items such as: heating, cooling, plumbing, water heater, electrical and certain major built-in kitchen appliances. If you are presented with an unusually low price, odds are the contract is not including one or more of these items. In addition to the above items, HWA™ includes in certain base programs other items that have high frequency repair needs that might not be covered under other companies’ warranties, such as: Refrigerators, Washer and Dryers, Garage Door Systems, Whirlpool Bath Tubs, Exhaust & Ceiling Fans, Burglar and Fire Alarm Systems, Central Vacuums, and much more. Be wary of warranty company web sites trying to compare their coverage to other warranty providers’ coverage. Often, they only note the items that they do cover, while leaving out the items that others cover but that they themselves do not cover. Most often, the information about the competitor is incorrect. It is best to take the time and make your own comparisons. All good home warranty providers will have a simple easy to read web page illustrating all of the major items of coverage, as well as a sample contract so that you and your clients can read the fine print! Service & Service Technician Network: You want a warranty company whose core business is underwriting, selling and servicing home warranties. Be wary of warranty providers that don’t administer their own service requests. Remember, this is a “service contract”. Would your clients really want a contract from a Company that sells them a service contract, but does not administer and approve its customers’ service requests? We’ve all been saddled with call centers where the people answering your clients’ calls have no vested interest in retaining them as a customer. A home warranty company needs to have developed a reliable service technician network. The service network should be supported by best practices contracts, verification of certificates of insurance, assurance of the necessary and applicable licenses, etc. If a warranty company uses a 3rd party administrator, then it is likely utilizing the 3rd party administrator’s service technician network. How can you find out if a home warranty company administers its own service request? First, call and ask. If you suspect they are not being truthful, it may note in its contract if it out sources its service to a 3rd Party Administrator. HWA administers its own contracts. HWA also has developed a reliable service technician network, requiring the service companies to commit to a “best practices contract”, provide proof of insurance, and proper licensing where applicable. HWA tries to provide technicians local to your area. These technicians service you with the intent of earning your future business and keeping your clients as a customer for as long as they live in the area. HWA always provides your clients with the name, address, and phone number of the chosen service technician. We also provide them with an email description of the service request so that they and the technician receive the same consistent information. HWA also sends each customer an email survey for each service request. We utilize that information to make sure our customer service personnel are treating them right, and that the service technicians are performing to their satisfaction. Cost: Please remember - You get what you pay for. If a home warranty price seems extremely low, there’s usually a reason behind the low ball pricing. Check the coverage, check the service fee, check the limitations, and ask about how service requests will be handled. A good home warranty provider will allow payment by check, credit card, and/or automatic checking account debit. A good warranty provider will also allow the option of paying the balance all at once or in equal installments over 3 months. Multiple pay period fees should be accurately and prominently represented. Replacements: Like-replacements of appliances should be provided directly from major brand-name manufacturers such as GE, Carrier, etc. HWA™ purchases replacement equipment directly from such major manufacturers. Rust & Corrosion Limitations: Rust & Corrosion limitations should be no more than the first 30 days of the contract period (this often helps to minimize pre-existing/proper working order disputes). Be wary of a company that excludes rust & corrosion during the entire contract period. Less reliable warranty companies utilize this to reject claims during the entire warranty period.