Key Takeaways
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A home warranty is a one-year service contract that helps homeowners save on repair or replacement expenses for home systems and appliances. It saves you money on costly repairs and replacements.
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Home warranties primarily protect against the failure of appliances and home systems. Homeowners insurance provides coverage for damage to your property from disasters, so the two types of coverage work in tandem.
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You’ll usually find coverage for your home’s HVAC, plumbing, and electrical systems. Home appliances such as refrigerators, dishwashers, and ovens are covered, with optional add-ons for pools or septic systems.
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Additionally, all plans typically exclude coverage for pre-existing conditions, cosmetic damage and structural issues. This underscores the need for regular maintenance to ensure your covered items remain eligible for protection.
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Monthly premiums typically range from $30 to $70. Service fees vary between providers, making it important to compare plans and find any hidden fees.
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A home warranty simplifies service requests, offering homeowners peace of mind, convenience, and significant savings on repairs when working with approved technicians.
The best home warranty company provides the best coverage for home systems and appliances, giving homeowners peace of mind from surprise repair bills. A trustworthy home warranty company will have knowledgeable representatives available to assist you with claims anytime, day or night. They cover most of the major appliances like refrigerators and washers.
These leading home warranty companies offer understandable terms, budget-friendly premiums and prompt service through a pre-screened network of technicians. With 24/7 customer support and flexible plan options, they are designed to fit every lifestyle and budget.
With transparent pricing and no hidden fees, their straightforwardness makes them all the more attractive and helps you protect your home investments with confidence. For homeowners, this peace of mind is quite valuable, giving them more financial protection and added convenience when it comes to managing household repairs.
What Is a Home Warranty
A home warranty is a service contract designed to cover the repair or replacement costs of major home systems and appliances. Homeowners insurance covers the costs of property damage due to disasters such as fires and storms.
Unlike a home insurance policy, a home warranty protects against failures due to normal wear and tear and undetectable pre-existing conditions. Homeowners may depend on a home warranty to mitigate the economic impact of unanticipated breakdowns. This model guarantees that critical systems and appliances are restored without delay.
1. Definition of a Home Warranty
A home warranty and homeowners insurance are not the same. While warranties cover breakdowns in systems like HVAC or appliances such as refrigerators, insurance addresses property loss from events like floods.
So, for example, if your dishwasher suddenly stops functioning after 10 years, a home warranty will cover the replacement. On the other hand, homeowners insurance would cover damage if a tree fell on your roof. The key to maximizing your coverage is understanding when to file a home warranty claim versus a home insurance claim.
2. Purpose of a Home Warranty
Home warranties typically cover major systems like plumbing and electrical or major appliances like your oven or dishwasher. Additional coverage options are available, as some home warranty plans allow you to purchase extra coverage for things such as pool equipment or septic systems.
For example:
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Basic Coverage: HVAC, refrigerators, and plumbing systems.
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Add-Ons: Pools, second refrigerators, or additional washers.
This adaptability allows homeowners to customize their warranty for their home’s specific requirements.
3. Key Features of a Home Warranty
Home warranties cover things like structural damage or damage caused by misuse or lack of maintenance. They may cover pre-existing conditions if they were undetectable, but failure to maintain the item can nullify the claim.
Taking care of your home gives you a better chance of getting claims approved. Most contracts have a service fee of $100-$125. You can look for flexible payment options, too. Usually, higher upfront fees mean lower overall premiums and vice versa. That flexibility helps home warranties fit different budgets.
Home Warranty vs Homeowners Insurance
Understanding the distinction between a home warranty and homeowners insurance is essential when managing the costs and responsibilities of homeownership. While both are forms of financial protection, they have different roles. Combined, they provide powerful protection from unforeseen costs.
A home warranty focuses on the repair or replacement of home systems and appliances that fail due to normal wear and tear, while homeowners insurance typically protects against structural damage and liability stemming from disasters or accidents. Combined, they form a strong safety net for homeowners.
Differences in Coverage
A home warranty covers major systems within your home such as HVAC, plumbing, and electrical. It protects essential home appliances such as refrigerators and ovens. It’s important to consider the age and condition of these items to decide what to cover.
Comparing plans and pricing among providers helps ensure you find a plan that best fits your budget and needs. For instance, some companies only provide basic plans that cover a few essential appliances, whereas others provide premium plans that cover a wider array of items.
Getting to know customer support avenues is important. Transparent and effective claims management provides peace of mind through quick support when accidents happen, leading to greater satisfaction.
Financial Protection Comparison
Though not insurance policies, home warranties can save you money by covering the costs of out-of-pocket home repairs. Typical monthly premiums run from $30 to $70, with annual costs averaging about $500 for basic plans.
Comprehensive plans can be expensive, costing thousands of dollars per year. Service fees per call range from $40 to $150, again depending on the provider. Significantly, higher monthly premiums usually mean lower service fees, saving homeowners more on less predictable expenses.
Cost is affected by location, the age of your home, and the type of coverage you choose. For instance, if your home is older and has older systems, you might need a more robust and expensive plan.
When to Use Each Option
Filing a claim under a home warranty means calling the service provider and explaining your problem. Most companies guarantee a response time of 24–72 hours, so they get the job done quickly.
Claim work is done by approved technicians, making sure that any work done meets warranty standards. If it does, say your water heater springs a leak, you simply file a claim and pay the service fee.
There, an authorized technician will promptly get your repair done for you. This process removes the hassle of finding trustworthy contractors and bargaining with them over costs, saving you time and providing peace of mind.
What Do Home Warranties Cover
Home warranties are meant to help you save money on sudden repair and replacement needs for major home systems and appliances. Reading the fine print of your policy is key to getting the most out of your home warranty. Coverage varies by provider and plan, but most warranties focus on three main categories: systems, appliances, and optional add-ons.
Regular maintenance and detailed records of your repairs will help you get the most out of your home warranty coverage.
1. Systems Covered by Home Warranties
Home warranties usually cover the key home systems that are at the heart of your home’s operations. These could be your major appliances, or even your HVAC systems, plumbing, electrical wiring, and water heaters. If your HVAC system breaks down due to regular wear and tear, you’re covered.
A home warranty can help pick up those repair costs! It’s important to remember that these aren’t covered if they are due to pre-existing conditions or lack of maintenance. Routine maintenance, such as regular air filter changes or annual inspections, will help keep these systems eligible for coverage.
2. Appliances Covered by Home Warranties
Home warranties typically cover a range of appliances, including:
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Refrigerators
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Stoves (ovens, ranges)
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Dishwashers
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Built-in microwaves
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Washers and dryers (when they’re in-home appliances, not the laundry facility kind)
For example, if the compressor in your refrigerator fails, the warranty would pay for repairing or replacing it. Because appliances are used every day, they are susceptible to wear and tear.
Having a history of previous maintenance or repair makes handling a claim less cumbersome. It further reflects a sense of responsible ownership that can help expedite and enhance the approval of your service requests.
3. Optional Add-On Coverage Options
To address this, most home warranty companies offer optional add-ons for items outside of the norm covered in home warranty plans. These can include items like pools, spas, septic systems, or well pumps.
So, if your pool heater breaks and needs to be replaced, an add-on policy can help cover those costs. Optional coverage is beneficial for homes with distinctive features, but you need to read the fine print.
Add-ons usually have some detailed exclusions or stipulations.
What Home Warranties Do Not Cover
Home warranties provide a sense of security, promising to cover the cost of repairing or replacing essential home systems and appliances. Knowing what these policies don’t cover is essential. Understanding what home warranties do not cover will help you have a realistic expectation and prevent surprises when trying to file a claim.
1. Common Exclusions in Policies
The majority of home warranty plans will not cover anything that is not specifically mentioned in the agreement. For instance, coverage typically only extends to coverage for common appliances such as refrigerators, ovens or HVAC systems. High-ticket features, such as outdoor pools, spas, and secondary refrigerators, are often excluded.
Be sure to look for them in the add-on pack, if you’re so inclined! Things like walls, roofing and foundations are usually excluded or limited. Even for items they claim to cover, warranties will attempt to reject claims because of rust, corrosion, or pest invasion.
2. Pre-Existing Conditions Explained
Home warranties don’t cover things that were already broken before you got the warranty. For instance, an HVAC system with a known leak or a dishwasher with visible electrical problems would not qualify for repairs under most policies.
Most companies will ask for a home inspection before issuing coverage to help document the condition of appliances and systems. Without this step, demonstrating that a problem wasn’t already pre-existing becomes impossible, leaving you with denied claims.
3. Maintenance Neglect and Its Impact
Regular maintenance not only keeps your home safe, but failure to maintain can impact home warranty claims. When a furnace breaks down, for example, it may be because an air filter was never replaced and is clogged. If that is the case, the repair may not be covered.
Failing to regularly clean your refrigerator’s condenser coils can do permanent damage. Likewise, you can avoid big problems down the road by not letting smaller leaks in your plumbing go unaddressed. Properly caring for appliances and systems per manufacturer instructions is necessary to protect warranties.
Benefits of a Home Warranty
A home warranty provides homeowners a practical solution to cover the surprise costs of repair. It gives you a systematic way to start addressing maintenance needs. This one plan brings together major financial savings with remarkable convenience. It gives you peace of mind by serving as a safety net for the everyday problems that are guaranteed to plague any home. Below, we dive into those benefits to explain them in greater detail.
1. Financial Savings for Repairs
We all know home repairs add up fast. This is particularly the case for major systems and key appliances, including HVAC units, plumbing, and electrical wiring. A home warranty goes a long way in covering these costs, preventing the financial strain.
Some companies, like Choice Home Warranty, cover HVAC systems up to $5,000 in full. They provide assistance with plumbing or electrical repairs for emergencies, with up to $3,000 in assistance available. Home warranties can cover pre-existing conditions at times.
Pre-existing conditions, especially for older homes, are a big value-add like with Cinch Home Services. This makes the investment extremely cost-effective over time, with average monthly costs sitting around $56.
2. Convenience of Service Requests
Having repairs managed through a home warranty simplifies and speeds up the repair process. Rather than spending valuable time searching for and screening technicians, homeowners can trust their warranty provider to dispatch qualified experts with the right experience and knowledge.
Home warranty companies such as American Home Shield even provide a 60-day workmanship guarantee for all technicians, so you know you’ll get quality, professional work done. This smooth communication saves time and hassle on both ends.
It helps you focus on addressing problems when they arise, ensuring your day-to-day life continues uninterrupted.
3. Peace of Mind for Homeowners
When you have a home warranty, you feel more secure. That’s particularly relevant to used homebuyers, who often inherit aging systems. Just having the peace of mind that appliances and systems are covered, including plumbing or electrical, takes away stress.
With extensive coverage options, home warranty protection gives homeowners the peace of mind that comes from knowing costly surprises won’t blow their budget. This peace of mind is priceless, especially during major life changes or for those new to homeownership.
How to Choose the Right Home Warranty
Choosing the right home warranty takes research and careful consideration of your choices. That way, you can make sure that you’re getting the best value and coverage customized to you. Knowing the ins and outs of the plans, pricing, and customer service availability can help you choose the best plan for your needs.
1. Assess Your Coverage Needs
Begin by determining what you want to be covered. Consider the key appliances and systems in your home, like HVAC, plumbing, or kitchen appliances. Some warranties provide extensive coverage, while others cover just a few categories.
Cinch Home Services is unique in that it covers pre-existing conditions. This feature is especially useful if you have older appliances. Pay attention to coverage limits and terms. These fine print items lay out the repair and replacement payout caps, which can differ widely among companies.
2. Compare Plans and Pricing
Request quotes from several reputable providers to compare costs. Consider how premiums and deductibles—or service call fees, as home warranties often refer to them—can be tailored to meet your financial needs.
Many companies will offer incentives, such as one free month or a discount, for paying for the entire year in advance. For example, Liberty Home Guard has excellent customer satisfaction ratings, so it’s one worth considering in addition to pricing information.
3. Review Customer Support Options
Customer service plays a vital role in your experience. Check reviews and ratings on resources like the Better Business Bureau to evaluate reliability and support quality.
Look for companies with transparent processes and responsive service teams to avoid potential issues highlighted in alerts about deceptive practices. A well-rated company provides peace of mind when filing claims or seeking assistance.
Costs of Home Warranties
Understanding the costs of home warranties helps homeowners evaluate their investment in protecting essential systems and appliances. The costs vary depending on the type of plan you select. They vary based on service fee, coverage levels, and provider-specific pricing.
1. Average Costs of Plans
A home warranty typically costs $56 a month. You’ll have to shop around to find plans that cost as little as $47 or $82 per month (or $564 or $984 per year). AFC Home Warranty makes home warranties an extremely affordable investment for homeowners.
Sign up today and get your home warranty coverage starting at $44 per month or $481 per year! Elite Home Warranty’s pricing is highly competitive, with monthly costs between $47-$60. This amounts to $47 to $60 per month, which translates to an annual cost of $564 to $720.
Comprehensive plans, which were selected by 70% of people who answered this question, tend to be more expensive but provide more coverage. Some providers even provide more basic plans starting at $35 per month, ideal for homeowners on a strict budget.
2. Service Fees and Hidden Charges
In addition to monthly premiums, many home warranties require service call fees, often $75 to $125 per technician visit. These service call fees vary widely by provider and can significantly affect overall costs, particularly when repair costs outnumber replacement costs.
A few providers give you the option to change your service fee. For example, choosing a higher service fee can lower your monthly premium (and vice versa). This flexibility allows homeowners to adjust their costs to fit their budget.
Don’t forget to consider hidden costs such as exclusions or caps on repairs. They don’t have to – they can work in your home’s favor and save you a lot of money!
3. Factors Influencing Plan Costs
Coverage level is the biggest factor since more comprehensive plans usually cover more extensive systems or appliances, leading to higher premiums. The provider’s pricing structure is key.
Companies like AFC and Elite provide competitive, transparent pricing to fit any budget. Geographic location, the age of the home, and the condition of appliances play a big role in costs. If you live in an older property or have high-value items, you might require more comprehensive coverage.
Service Request Process for Warranties
Knowing what to expect when you submit a service request with a home warranty company will help ensure you have the best experience possible. Each step in the process, from filing a request to working with technicians, ensures that your covered items are repaired or replaced efficiently.
Steps to File a Service Request
Submitting a service request typically begins with a call to your home warranty company. Virtually all warranty providers have various methods to start the process, whether that’s through their own online portal, mobile app, or customer service hotline.
After logging in or entering your contract information, you will be prompted to identify the issue. Provide details on symptoms, where applicable, and what appliances or systems it impacts. For example, if your HVAC system is not cooling, describe the sounds you hear, the airflow, and how you’ve been using the system lately.
After your request is sent in, the provider usually verifies eligibility by checking the problem you’re reporting against your warranty plan. Rule of Thumb: Always have your contract on hand to reference specific details.
Response Time Expectations
Most home warranty companies require an immediate response, but times may vary. Most providers pledge to reply to requests within 24 to 48 hours. Emergency problems, like a malfunctioning water heater in the middle of winter, may be prioritized for quicker response.
On weekends or holidays, responses might take a little longer, but manufacturers will usually rush critical repairs. Should delays happen, most providers will provide straightforward information about expected timelines. For instance, a manufacturer should inform you when parts are no longer available and offer an expected date of resolution.
Working with Approved Technicians
Our Approved Technicians are an integral part of the service request process. Home warranty companies have a vested interest in assigning high-quality, pre-vetted professionals to the repair work.
After you are assigned to a technician, they will contact you directly to schedule a visit, typically working around your schedule and availability. They evaluate the problem in the field, decide whether to repair or replace, and communicate those findings to the warranty company.
If a stove requires a replacement part, the technician orders it through the provider’s network. This saves the homeowner from having to pay out-of-pocket for repairs.
It’s really important to let the technician know what you need covered in each appointment and run through your priorities.
Tips for Maximizing Your Warranty
A home warranty plan can be intimidating to navigate. If you know what to do, you’ll make the most out of your warranty. By taking a proactive and informed approach, you’ll save your company money and get the most value from your policy.
1. Understand Your Policy Terms
Get to know your plan’s coverage limits, exclusions, and conditions. For instance, some warranties exclude coverage for pre-existing conditions or failures due to incorrect installation. Understanding these terms will help you avoid unexpected denials when you go to file a claim.
Review your contract often to make sure you clearly understand it, particularly as your renewal approaches. Determine whether the monthly premiums are worth the value of the coverage by weighing the cost of potential repairs.
2. Regular Maintenance for Covered Items
Adhering to maintenance schedules is key to preventing warranty invalidation. For example, regular maintenance of your HVAC system helps your system run better and fulfills most plan requirements. Regular maintenance prevents unexpected malfunctions and expensive fixes.
Easy measures such as regularly cleaning filters or reading your appliance’s manual help you stay within the rules of your warranty’s fine print.
3. Keep Records of Repairs and Claims
Taking notes on what repairs and claims need to be made saves time and effort. File all receipts, invoices, and service records in a manner that is easy to access. When it comes time for repairs, get several estimates.
Homeowners save an average of 20% by shopping around for home repairs. Timely reporting of claims is important too, as claims submitted on time are 70% more likely to be approved.
Conclusion
Finding the best home warranty company takes some work. That investment is well worth the effort when your home systems or appliances fail. The right plan will provide you with the ultimate peace of mind as well as savings on unforeseen repairs. Understanding what you’re getting covered, how much you’ll pay, and how to file a claim will help prevent any unexpected surprises. Do your research, compare providers side by side, read peer reviews, and know the terms of the contract. Choose coverage you can understand, service you can count on, and pricing that’s right for your home.
A home warranty is an investment in convenience and protection. It helps your home function well, so you’re not constantly stressed about huge repair costs. Begin comparing your options today to find a plan that fits your needs and your home. It’s an effort well worth it.
Frequently Asked Questions
What is a home warranty?
It’s designed to help homeowners afford the repair or replacement of major home systems and appliances—including HVAC, plumbing, and kitchen appliances—that can break down due to everyday use.
How is a home warranty different from homeowners insurance?
A home warranty covers repairs for appliances and systems due to wear and tear, while homeowners insurance protects against unexpected damages like fires, floods, or theft.
What do home warranties typically cover?
A typical home warranty policy covers your significant home systems (HVAC, plumbing, electrical) and appliances (refrigerator, dishwasher, washer/dryer). Since coverage is different with every provider, always look at the policy’s fine print.
What are some benefits of having a home warranty?
The right home warranty will provide you the confidence you need while avoiding sudden, costly repairs. They save you time and stress by connecting you to a network of qualified technicians.
What isn’t covered by home warranties?
Home warranties typically exclude items with pre-existing conditions, cosmetic damage, lack of maintenance, and things covered by manufacturer warranty. Remember to review exclusions in your contract.
How much does a home warranty cost?
The average cost is $300–$600 per year, with per-repair service call fees of $50–$150. It’s important to note that prices greatly differ according to the provider and level of coverage.
What should I look for when choosing a home warranty company?
Look for the company’s reputation, coverage options, exclusions, pricing, and customer reviews. Make sure that the companies you’re considering can provide plans that meet your unique needs.