Not Understanding What’s Covered – One of the biggest mistakes homeowners make is not fully understanding what their home warranty covers. Always read the fine print and ask questions if anything is unclear. Ensure that the warranty covers the specific appliances and systems in your home that are most important to you.

Overlooking Service Fees – While the annual or monthly premium is important, don’t forget to check the service fees associated with repairs or replacements. High service fees can add up quickly and negate any savings you might have gained from a low premium.

Choosing the Cheapest Option – While it might be tempting to go with the least expensive plan, this can often lead to inadequate coverage. It’s important to balance cost with the level of coverage provided to ensure you’re adequately protected.

Ignoring Customer Reviews – Customer reviews can provide valuable insights into how a company handles claims and customer service issues. Ignoring these can lead to frustration down the line if the company doesn’t meet your expectations.

Not Considering the Exclusions and Limitations – Every home warranty has exclusions and limitations. Failing to consider these can result in unexpected out-of-pocket expenses. Make sure you understand what is not covered and the limits on what is covered.

Failing to Compare Plans – Don’t just go with the first plan you find. Take the time to compare different plans and companies to find the one that best suits your needs and budget.