Can I trust a warranty company?

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When you receive a warranty protection offer, you might wonder if it’s right for you. Can you trust a warranty company since many have a bad reputation for high denials and limited coverage options?

The answer lies in research – with a little bit of know-how, you can evaluate any program offer and determine if it’s the right fit for you.

Review the company

  • How long has the company been in business and have they had multiple changes to their brand name?
  • Are they partnered with any notable companies or industry organizations?
  • Read customer reviews.
  • Review their Better Business Bureau profile for accreditation and complaints.
  • Have complaints been resolved in a timely manner and to the customer’s satisfaction?
  • Have they been recognized by the BBB or industry associations for their customer service or contributions to the industry?

Review the Terms and Conditions for each offer and note the following:

  • What are the warranty coverage inclusions and exclusions?
  • Are there hidden service fees or deductibles?
  • Are there coverage caps on the amount paid per repair or per year?
  • Are there coverage restrictions?

What are people saying online?
Google the company name with the word “Complaints” and see what appears. Also note the kind and number of complaints a company has had with the Better Business Bureau or the State Attorney General.

Contact Customer Service
Call the company’s customer service number with questions. Were your questions answered to your satisfaction? Did you have a long wait time before you spoke with a representative? Does their company website have a “frequently asked questions” section that addressed some of your questions? How well the customer service team responded to your questions is usually indicative as to the level of service provided to customers.

Are they accredited with the Better Business Bureau?
All companies are rated with the Better Business Bureau, but some companies choose to be accredited, meaning they abide by a code of ethics set forth by the Better Business Bureau and communicate with the organization regularly by responding to all inquiries and complaints in a timely fashion.

Once you’ve completed an evaluation of the company, only you as a homeowner can determine which warranty is most beneficial for you.

Do I need a water or sewer line warranty?

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It’s not uncommon to have homeowners tell us they don’t need a water or sewer line warranty because their lines haven’t broken and will never break. While we’ve uncovered this is far from the truth – many homeowners are unsure if they need a water or sewer line warranty. When evaluating whether or not to purchase a water or sewer line warranty, homeowners must first understand the coverage details. Warranties are not the same as insurance. While insurance typically covers damage to personal property as a result of service line failures, disasters and extreme circumstances (such as fire, flood, etc.), warranties focus on normal wear and tear – such as aging, ground shifting and tree root intrusion. Problems due to normal wear and tear with the sewer and water lines located outside the home are usually not covered under traditional homeowner’s insurance policies and could be very costly to replace or repair.

When considering whether or not to invest in a water or sewer line warranty, consider the following:

Age of the home
It’s common knowledge as products age, the failure rate increases. While newer homes with PVC pipes may be at lower risk than a 50-year-old home with clay pipes, the age of your home can help determine your need. As homes age, so does the infrastructure supplying water to and removing waste from them.

Types of pipes and length of lines
Do you know of what materials the water and sewer lines inside and outside of your home are made? Some materials are more prone to problems and have shorter life expectancies than others. Knowing what the lines are made of can help determine the level of risk. In addition, the longer the line, the greater the risk of failure and the higher the cost to replace them.

Weather
Weather conditions can affect a pipe’s life expectancy and conditions as they swell with changes in temperature and ground shifting. If the area in which you live is prone to heavy rainfall, droughts or extreme temperature changes – your infrastructure could be at risk.

Plants
The closer your water and sewer lines are to the ground’s surface and  plants and trees, the greater the chance of roots permeating the pipes. It only takes a small pinhole for a root to begin to infiltrate the line, which may result in a leak, clog or break.

 Cost
What is the cost-benefit ratio? Should you pay a small monthly fee for the warranty or do you have enough in your emergency fund to pay for a repair that could cost from $1,300 to $3,500 or more?

Fine Print
Check out the Terms and Conditions of the warranty. Do they adequately cover your particular situation?

Company
Before buying any product, do your homework; research financial stability, outstanding consumer complaints, etc.

Time
One of the many benefits of participating in a maintenance or warranty program is the ability to make one call to solve the problem. If your service line breaks, consider the time invested in locating a qualified, local plumber and scheduling the visit, which may require taking time off from work and is disruptive to your daily routine.