Most Commonly Asked Questions About Home Warranty Plans
Purchasing a Home Warranty is the best way to prevent expensive home and appliances repairs. The last thing homeowners want is to deal with malfunctioning appliances, whether it's a leaking laundry machine or an AC that won't work, repairing appliances can be expensive and hectic.
Home warranty services will either repair or replace your major appliances and/or systems should they break down at any point. Depending on how many appliances and/or systems you need covered, the price of a home warranty can start at $20/month and maxes out around $60/month.
Got a question about home warranties? We've got answers! Read up on how home warranties work and shield your home today.
What is a Home Warranty?
Similar to a warranty that comes with the purchase of a new phone, appliance, or piece of equipment, home warranties, or service contracts, cover home appliances and system repairs. Home warranties shield homeowners from the high cost of unexpected appliance breakdowns and system failures. They provide protection not just for your home, but for your budget and time as well.
How do Home Warranties Work?
What's great about home warranties is that unlike a standard warranty that comes with an appliance, home warranties cover a wide variety of items which can be customized depending on your needs. When signing up for a home warranty or receiving an initial quote, you will be asked to fill in basic information about the location of your home and which appliances and/or home systems you want to cover. Most home warranty companies offer a choice of several plans with options to add appliances based on need.
These home warranty companies will charge an annual contract fee for yearly coverage and a small service fee when they need to send someone to repair or replace an appliance. Typically home warranty companies work with certified local technicians who work quickly and efficiently to help ensure your home is back in working order.
What Factors Should I Consider in a Home Warranty?
Different home warranty companies tend to offer different kinds of plans, but at their core they all offer a similar service. However, there are several major factors that you should consider when choosing which home warranty is best for you.
- Coverage: In our side-by-side home warranty comparison guide, you'll likely notice that certain appliances are not covered when you subscribe to a basic plan. Many companies leave out the duct-work, refrigerator, and AC out of their cheapest plans. Still, there are a few companies that cover these appliances. When choosing a home warranty, be sure to go over what's covered and what isn't.
- Approval: An affordable plan is great, but does the provider easily approve claims? Read reviews to find out which companies approve claims and repair your appliances immediately. Many companies tend to deny claims even to deserving cases. Only a few top companies keep their promises of covering your appliances when they break down.
- Customer Support: When your refrigerator breaks down, you want a company that answers your call immediately and listens to your needs. Even if they won't send a technician on the same day, efficient customer support will ensure that your issues will be fixed.
How Much Does a Home Warranty Cost?
Home warranties cost from as little as $250 per year to a maximum of about $600 a year. The plan you choose largely depends on the appliances and/or home systemws you need to be covered. However, you don't have to overpay for a plan. Instead, choose systems and appliances you use the most and cover only those. You'll get better value for your money.
Additionally, check the coverage limits of your plan. Some home warranties only cover $500 worth of repairs for appliances some go up to $2000. Work with a company whose limitations are high enough to fully cover the repair of your appliances.
Are Home Warranties Worth the Cost?
Home warranties are some of the most complained about services on various review platforms. Stories of denied claims fill review websites like Yelp, BBB, and Facebook. But beneath the complaints are positive experiences most people had with the same companies.
As such, how a home warranty works out for you mostly depends on the choice you pick. A good provider will repair or replace your appliances within just a few days. A bad company will always look for ways to deny your claims.
Home warranties are worth the cost if you choose one that is reputable, trustworthy, and follows through with it's claims. The best way to insure your home appliances and/or systems is to ensure that you are doing your homework and using a trustworthy company
What are Some of the Best Home Warranty Brands?
Choosing the best home warranty brand for you will depend on a variety of factors including which appliances and systems you want to cover, the age of your appliances, what state you are located in, etc. Here are a roundup of some of the best and most reliable home warranty companies.
Select Home Warranty
Based in New Jersey, Select Home Warranty provides high coverage limits, no home inspection and quick responses to claims. The company offers its services in three plans all priced between $429.99 and $499.
Like CHW, Select Home warranty doesn’t cover your ductwork, and air conditioner in the cheapest plan. However, it does cover refrigerators. SHW’s expensive plan covers both appliances and systems like plumbing stoppage and the garage door opener. Select Home Warranty charges $60 for service calls and $75 to cancel your contract. Either way, it’s slightly more expensive than CHW.
First American is one of the most established home warranty providers in North America. You’ll find it in almost every home warranty comparison plan guide—and for good reasons. Despite being in the business for more than 30 years, First American is affordable and offers comprehensive coverage.
The company’s two plans cost $288 and $468 per year. A service fee of $75-$95 applies but coverage begins immediately upon subscription. With most alternatives, you can only make a claim after 30 days. Another benefit is that First American’s basic plan covers most appliances other providers warrant in premium plans.
With the basic plan, you receive coverage for your ceiling fans, your kitchen refrigerator, and a clothes' dryer. You also receive coverage for your oven, trash compactor, and dishwasher. When you subscribe to the premium plan, you receive cover against your central vacuum system, garage door opener, ductwork, plumbing stoppage, and electrical systems.
Total Home Protection
While it could take you days to make a claim with some providers, it takes a few hours on Total Home Protection’s website. Once you make a request, the company sends a knowledgeable technician who assesses your appliances and fixes them accordingly.
Total Home Protection charges $299 for a basic plan and $499 for its most expensive plan. When there is a promotion, the company also deducts $100 off your plan for the first year. Its list of covered appliances is also comprehensive. Unfortunately, Total Home only operates in 33 states.
Liberty Home Guard
In an industry where most companies get overwhelmingly negative reviews, Liberty Home Guard is an exemption. The company is rated high by most home warranty company comparison sites. It has almost no complaints on Better Business Bureau and has a customer support team that’s always available for your calls.
LHG charges $399, $499 and $599 for its plans. The basic plan covers every major appliance, including some systems most alternatives don’t cover. For instance, it covers the garage door opener, the clothes' dryer, your refrigerator, and cook-top.
Advanced Home Warranty
Advanced Home Warranty promises to cover your appliances free of charge for the first one month. But then again, you can’t make a claim during that period. Isn’t that false advertising? It is. However, that’s a problem in the whole industry.
The advertising aside, Advanced Home Warranty has the lowest plans in the industry. The company’s basic plan cost $31. A home warranty cost comparison of all major brands in the business places the standard plan at $45 per month.
ADW's basic plan cover your stove, dishwasher, heater, and more appliances. It doesn't cover the dry cleaner, refrigerator, and AC though. Again, a $60 service call fee appliances. If you want to cancel your contract, the company charges $50.
InHome Warranty began operations in 2008. The company is based in New Jersey and offers its services in two plans. The basic plan caters to appliances and some systems while the total plan includes all appliances and major systems. The basic plan doesn’t cover your washing machine, clothes’ dryer, AC and refrigerator.
Unlike most companies, InHome Warranty has limited information on its website. You have to contact the company’s representatives to learn everything covered by their plans. However, InHome Warranty promises great services or a refund of your fees.
Choice Home Warranty
There isn't an appliance that Choice Home Warranty isn't willing to cover. From refrigerators to water heaters, cook-tops, and sump pumps—the New Jersey-based company prides itself in covering every appliance in a home.
Choice offers its services in main plans. A basic plan costs $370 per year and covers all major appliances apart from clothing dryers, ACs, duct-works, and refrigerators. The premium plan costs $450 and covers more than 20 appliances, including those units not included in the basic plan.
If you need coverage for a second refrigerator, a well pump, sump pump or a standalone freezer, Choice covers these appliances at an additional cost. There is also a service fee of $60, although this is lower than what many alternatives charge.
A home warranty is meant to give you peace of mind when your appliances break down. They promise to make repairs for all systems covered in a monthly plan or even replace them. Unfortunately, not every company can be trusted to fulfill its promises. Only the very best home warranties fulfill claims. Make sure you use our guide above to find a good company and pick a plan that best suits your needs.