Many buyers rely on a home warranty to cover needed repairs in their new home.  While a home warranty can be valuable, there also can be pitfalls.  It is important to research the warranty before you purchase one and read the fine print.  Here are some helpful tips:

• Don't always look for a bargain.  Sometimes you get what you pay for.

• Ask about immediate coverage once you close escrow.  Is there a waiting period before you file a claim for service?

• Make sure that you understand everything that is covered and what is not covered.  You may have coverage for your kitchen stove, but they may not cover the knobs.

• Some warranty companies have maximum coverage amounts on certain items.  This is important to know.

• Compare at least three different warranty companies.  You can read reviews and ratings here -  www.homewarrantyreviews.com                                                                                               and here -  http://www.consumeraffairs.com/homeowners/aaa_warranties.html#most-  reviewed-1