What is a Home Warranty, How It Works, and What It Covers
A home warranty is a contractual agreement that provides for the repair or replacement of a home's systems and appliances. Unlike homeowners insurance, which covers the home's structure and contents from damage, a home warranty does not cover items like home furnishings. Although electronics and other specific items are typically not covered under a standard home warranty, many companies offer additional coverage options through riders for almost any home system or appliance.
A home warranty typically requires an annual fee and service fees charged when a claim is made. When a homeowner files a claim, service contractors are dispatched to address the issue. Typically, covered items are repaired or replaced within 48-72 hours, according to the service contract terms
Home warranties generally cover essential home appliances such as refrigerators, washing machines, dryers, dishwashers, microwave ovens, and stoves. They also extend to crucial home systems like HVAC, plumbing, water heaters, and electrical systems. Many policies also allow homeowners to add coverage for items like swimming pools, hot tubs, and outdoor appliances.
All Tested Home Warranty Companies in 2024
Choice Home Warranty - Most Popular and Best Value for Money
24/7 call centers running for your convenience
Handled more than 6,600,000 Service Requests
Nationwide Network of more than 25,000 Contractors
Covered more than 2,000,000 Homes Across the USA
Over 20,000 5 Star Reviews from our Customers
EXCELLENT
REVIEW
5.0
2+ MILLION HOMES
MOST POPULAR
Best Home Warranty - Consumer's Choice
HWA - Best for Fast Response Times
Trusted For Over 25 Years
24/7 Customer Service
30 Day Money-Back Guarantee
More than 25,000 Contractors Nationwide
Very Good
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4.7
Best For Real Estate Buy and Sell Home Warranty
24/7 Customer Support
No Age Limit on Covered Items
No Inspection Required
More than 25,000 Contractors Nationwide
Very Good
REVIEW
4.5
Basic $35 coverage includes 14 systems, excluding kitchen and laundry appliances.
Platinum coverage includes 23 systems and appliances, but the price is $85/month.
Good
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3.9
How to Choose a Home Warranty Company
Buying a home is a significant investment, and protecting that investment is crucial. One way to do this is by purchasing a home warranty plan. Here’s a guide to help you understand what to look for when choosing the right plan for your needs.
Home warranty cost
When evaluating the cost of a home warranty plan, consider the premiums, service fees, deductibles, and potential additional costs. Compare plans for the best value. Watch for price increases upon renewal and the costs of optional add-ons. Balancing these factors ensures you get the right coverage for your budget.
Coverage Details
When evaluating a home warranty plan, ensure it covers essential systems and appliances. Choice covers more than 25 major systems. Check for exclusions and coverage limits, and consider optional add-ons. Understand maintenance requirements and replacement terms. Review service fees and claim processes for a comprehensive understanding of the plan.
Customer Service
Ensure the provider offers 24/7 customer support for emergencies, as timely assistance is vital during unexpected breakdowns. Check response times for service requests; faster responses mean quicker repairs. Consider the provider's reputation. Good customer service can significantly impact your overall satisfaction.
Coverage Limits and Caps
These limits specify the maximum amount the warranty will pay for repairs or replacements per item or annually. For instance, a plan might cover up to $1,500 per HVAC repair or a total of $10,000 annually. Exceeding these caps means you'll pay out-of-pocket. Check if the limits are reasonable for your home’s needs. Additionally, understand any aggregate limits, which cap the total payout for all claims combined.
Claims Process
Check how to file a claim—whether online, via an app, or by phone. Ensure the process is straightforward and user-friendly. Look into the typical approval time; faster approval means quicker repairs. Verify if the provider has a network of pre-approved contractors or if you can choose your own. Read reviews to see how efficiently claims are handled and resolved.
Contract Terms
Check the contract length; most are annual, but some offer multi-year options. Understand the renewal terms, including any potential rate increases. Examine the cancellation policy, noting any fees or conditions for early termination. Look for specifics on coverage start dates, as some plans have a waiting period. Ensure clarity on the process for modifying coverage during the contract term.
Choosing the right home warranty plan involves careful consideration of coverage, costs, provider reputation, and contract terms. By doing thorough research and understanding your specific needs, you can find a plan that offers peace of mind and protection for your home investment.