Around the first anniversary in your new house, you'll probably get a notice from the warranty company offering you the opportunity to renew the service contract for another year or longer. Should you bite? Warranties can also be purchased by existing homeowners, and if you don't like the current company you're with you can switch to a competitor. But are these service contracts, which can run $300 to $600 or more annually plus co-pays, which can be $0 to $100, worth the expense? Here are six tips from the experts before you sign on dotted line.
Get your copy. "If a company is asking you to renew or soliciting you to buy a new service contract, ask for a copy first," says Stephen McDaniel, assistant executive director of the Service Contract Industry Council in Tallahassee, Florida. "A reputable firm isn't going to pressure you to buy a contract if you want to read over the details on your own time. If they don't want you to see it before you buy, assume there's a problem."
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