A newly purchased home usually carries with it a one-year home warranty for existing appliances, either paid for by the seller or by the buyer. A basic home warranty typically includes common major appliances such as dishwasher, range, oven, air conditioning, garbage disposal, and furnace. Additionally, plumbing and heating systems are normally covered as well. It is, nonetheless, important to review your home warranty contract to find out exactly what appliances are covered/not covered.

And yes, home warranty includes old appliances, as long as they are in good working condition. However, your policy may have a stipulation that excludes coverage on older than 5-yr old appliances, so make sure you check your plan carefully.

The reputation of a home warranty company is paramount in choosing your provider. Things to consider:

• Customer service. Are they open round the clock? If your furnace breaks in the middle of the night, will someone be answering your call for service?

• Quality of work provided by their service technicians. Check out the service providers on their network. Ask friends who have used their service. This is a critical issue as it is the service contractors that will eventually  recommend whether the broken appliance can be repaired or needs to be replaced. Make sure they are qualified to make that call. For most homeowners, this is the single most important factor considered in deciding which home warranty to choose.

• Promptness of response when a breakdown occurs. When they say they will come in an hour, do they arrive in 3? Do they respond soon enough so that your appliance’s downtime is only minimal?

Having a home warranty gives the homeowner a sense of security should breakdowns occur. You usually forget about it once you get it. But when the need actually comes up, it is reassuring to know that your home warranty provider truly delivers on its commitment. So, choose wisely!