Is a home warranty worth it? Well, the unexpected breakdowns of a refrigerator or air conditioning system during summer can be a headache. We’ve all been there, but a home warranty can offer relief and make all the difference.
This guide aims to explore the value of a home warranty and emphasizes the factors you should consider when choosing one.
We cover the basics and dive into specifics of typical home warranty policy coverage, contrasting average costs against the peace of mind you get with companies like Choice Home Warranty. Let’s get straight to it.
What Is a Home Warranty?
A home warranty is a service agreement that assures repairs or replacements of major home appliances and systems that break down due to wear and tear.
Unlike homeowners insurance, which covers damage caused by natural disasters, fires, and unexpected events, a home warranty simply covers home appliances and systems. Warranties are designed to help avoid financial crises when appliances fail.
Is a Home Warranty Worth It? The Pros and Cons
Pros
- A perfect addition to homeowner’s insurance
- Offers added safety and assurance
- Helps save money on costly repairs
- Makes it easier to find and book service providers
Cons
- Potentially extended claims and repair processes
- Newer homes and appliances can mean higher overall costs
How a Home Warranty Works
How does a home warranty work? Here’s what happens when you want to file a claim:
- First, you contact the warranty provider to submit a claim.
- Then, the provider evaluates whether the item is covered. If it is, a service technician is sent to your home to handle the issue.
- You only pay the predefined service fee regardless of the actual repair expense.
You don’t need to look for a dependable service provider or worry about the expense as long as your plan covers the appliance in question. Knowing the extent of your coverage is vital to prevent unwanted surprises when you file a claim.
>>Check out Choice Home Warranty and its plans here
When Is a Home Warranty Worth It?
Here’s what to consider if you’re wondering, “Is a home warranty worth it?” Firstly, it’s probably not your best pick if you are handy and love DIY projects, as you might be able to fix most of the appliances yourself.
On the other hand, a warranty can be a great option if you’re not handy or simply don’t have time for home repairs. It provides a fast and straightforward solution to such issues. It’s an excellent solution if you are a new homeowner and don’t have long-standing relationships with handypersons.
It ultimately evaluates your home appliances or systems and their possibility of breaking down, balanced against the specific plan costs. A home warranty offers peace of mind as its primary value proposition.
When Is a Home Warranty Not Worth It?
As mentioned, a home warranty may not be the best solution for everyone. For example, a home warranty may not be needed if you live in a newer home protected by builders’ warranties.
Furthermore, if you like to choose service providers based on reputation and reliability or have a substantial emergency fund, you may feel more limited with any warranty plan out there. Whether a home warranty is worth it depends on your circumstances, where you decide if the advantages actually fit your needs and financial capacity.
What Is Covered in a Home Warranty Policy?
Home warranties usually service appliances (like ovens, refrigerators, and dishwashers) and major systems (like plumbing, electrical, heating, and air conditioning).
You should read the contract thoroughly, as the coverage scope and plans can vary substantially for different providers. Some plans provide add-ons for items like septic systems and pools, giving you more protection for your home.
>>Check out Choice Home Warranty plans here
What Don’t Home Warranties Cover?
Home warranties can’t cover everything. They usually don’t cover malfunctions caused by faulty installation work or untypical wear and tear. Most plans don’t cover appliances and systems with pre-existing issues or inappropriately preserved.
Home warranty services generally do not cover the roof, foundation, and other structural parts of your home. You should read your contract and remain aware of exclusions to manage your expectations when filing a claim.
Average Costs of a Home Warranty
The home warranty expense generally varies from $300 to $600 per year, depending on the plan, provider, and place of residence. Typically, a service fee of $75 to $125 is charged for every repair.
Take these expenses into account when you ponder, "Is a home warranty worth it?” so that you don’t get a service you can’t pay for or have to repair items on your own.
How to Choose a Home Warranty
Choosing a home warranty provider isn’t just a matter of evaluating the costs. Finding something within your budget is crucial, and finding a reputable company and the coverage you need is just as important.
Research the Company’s History and Reputation
Do your research on the company's history and reputation. Look into the general customer feedback, complaints, and the provider's handling of customer concerns. A strong history of equitable company practices and timely service is vital. Check ratings from Better Business Bureau and other accreditations.
Ask What the Warranty Covers
The first step is comprehending the plans offered when you’re wondering if a home warranty is worth it. Discover which appliances and systems are covered, as prices and coverage can differ significantly for every company.
It is important to be aware of your home's particular requirements, listing what you want covered—from modern appliances to an older HVAC system, for example. This will be the cornerstone of your search, ensuring you reap the most benefits.
Ask When Exactly Your Coverage Begins
Some warranties require waiting times before coverage is provided. To prevent surprises, be sure to know the exact timeline. You should learn when your coverage begins, particularly if your home’s older parts need to be replaced or repaired soon.
Read the Fine Print
Make sure to read the details. Understand the limitations, exclusions, and the process for filing a claim beforehand. Being familiar with these aspects can save you headaches down the road and ensure you're getting true value from your warranty.>>Check out Choice Home Warranty and its plans here
Top Home Warranties
When choosing among the top home warranties, consider your home’s needs and what the company offers. Many home warranties offer broad coverage, good customer service, and transparent prices. Below, we take a look at some of the top picks in the country.
Choice Home Warranty - Best Home Warranty Overall
Pros
- Extensive coverage for major appliances and systems
- 24/7 customer support
- Flexible service call fees
- Simple procedure for filing claims
Cons
- Restricted options for tailored services
Why Choose Choice Home Warranty?
With clear coverage plans, Choice Home Warranty is a great choice for people new to the concept of home warranties. When you need help, the company’s simplicity and transparency can be very convenient and with few technicalities. Also, you know you’re not left alone, as they have great customer service, according to Choice Home Warranty reviews.
Plans
Choice Home Warranty has two plans: Basic and Total.
- The Basic plan covers most basic home appliances and systems.
- The Total plan is more extensive and covers almost any part of your home, giving you serenity with comprehensive protection.
Optional coverage is also available for items such as a pool, spa, stand-alone freezer, sump pump, and more.
Summary
Choice Home Warranty provides a trustworthy safety net for homeowners due to its simplicity, extensive coverage, and excellent customer support. Choice has plans that may be customized for your individual requirements.
>>Check out Choice Home Warranty plans here
American Home Shield Home Warranty - Best for Customization
Pros
- Offers tailored plans
- Coverage doesn’t require inspection
- Covers unknown pre-existing conditions
- Provides broad coverage
Cons
- Plans have higher premiums and service fees
Why Choose American Home Shield Home Warranty?
With its flexible approach to home warranties and options for customizing coverage to the client’s requirements, American Home Shield is an excellent choice. American Home Shield reviews say it may be a good fit for homeowners looking for comprehensive protection without loopholes or formalities.
Plans
AHS provides three plans that may cover only appliances, systems, or a combination of the two, with add-ons for special items like spas or pools. Their way of operating gives you control, tailoring a warranty to your home’s needs and requirements.
- The ShieldSilver plan covers parts of more than a dozen major systems that keep your home running.
- The ShieldGold plan covers parts of 23 major systems and appliances in your home.
- The ShieldPlatinum is a comprehensive plan that protects parts of 23 systems and appliances, plus roof leak repair.
Summary
AHS has extensive coverage options and tailored plans, providing serenity and flexibility. It may be a great choice if you’re seeking a home warranty customized to your home’s needs.
>>Check out American Home Shield plans here
First American Home Warranty - Best for Older Homes
Pros
- The basic plan has broad coverage
- Reasonable charges on service
- Covers items with faulty installations
- Processes claims 24/7
Cons
- You can’t choose your technician without the company’s approval
Why Choose First American Home Warranty?
With clear and easy-to-comprehend coverage plans and competitive pricing, First American Home Warranty reviews say it may be a good choice for homeowners who need protection without spending a fortune.
Plans
There are three plans: Starter, Essential, and Premium.
- The Starter Plan offers basic coverage of home appliances and systems.
- The Essential Plan covers everything from the Starter Plan to air conditioning, garage door openers, water heaters, and clothes washers and dryers.
- The Premium Plan covers all items from the Essential Plan and additional items like luxury appliances, garbage disposals, and faucets.
Summary
First American Home Warranty provides good quality and peace of mind for homeowners looking for dependable coverage that is reasonably priced. It best suits older homes and is dedicated to covering a wide range of potential problems.
>>Check out First American Home Warranty plans here
Home Warranty Alternatives
While the above mentioned home warranties come in very handy, there are alternatives. Some people may find it more flexible and feel more in control if they save money in a specific home repair savings account. You can choose your service providers, which may spare you from home warranties’ exclusions and limits.
Reliance on the manufacturer’s warranty for newer appliances is another option to gain coverage without the extra expense of a home warranty. The decision should be based on your financial standing, your home’s age and condition, and your risk tolerance.
Frequently Asked Questions
Below, we answer the most frequently asked questions regarding home warranties, covering both basic and more complex questions.
What Is the Biggest Benefit of Home Warranty?
The main advantage of home warranties is financial protection against unforeseen repair expenses for home appliances and systems. It is the peace of mind you have as a homeowner when protected against potentially big maintenance costs.
Are Home Warranties Worth It for My Old House?
If you’re wondering, "Are home warranties worth it for this old house?” We must note that some warranties may be especially useful for such homes. Some home warranty companies offer plans covering repairs of aging appliances and systems.
Is Home Warranty a Real Thing?
Yes, home warranties are legitimate service contracts that cover the repair or replacement of home systems and appliances. They are a perfect addition to homeowners insurance, and many users report getting value for their money.
Do Home Warranties Cover Roofs?
Most standard home warranties don’t cover roofs. However, some companies offer roof coverage as an optional add-on if you are worried about it.
Do Home Warranties Cover Windows?
Typically, home warranties do not cover windows, as they are considered part of the home’s structure. Again, add-ons may be available with specific plans.
Do Home Warranties Cover the Foundation?
The foundation of a home is generally not covered under standard home warranty plans.
Do Home Sellers Pay for a Home Warranty?
Yes, it's common for home sellers to offer a home warranty as part of the sale to make the property more attractive to buyers.
How Long Do Home Warranties Last?
That depends on the contract you sign. Typically, the best home warranties last for one year and can be renewed annually.
How Much Is a Home Warranty Monthly?
The monthly cost of a home warranty can range from $25 to $60, depending on the plan and coverage options. Many of the top home warranty companies offer free quotes online.
Is a Home Warranty the Same as Home Insurance?
No, a home warranty is not the same as home insurance. Home insurance covers damage from events like fires and storms, while home warranties cover the repair or replacement of appliances and systems that break down
>>Check out Choice Home Warranty plans here
So, Is a Home Warranty Worth It?
Home warranties are valuable tools for many homeowners. They provide financial protection and peace of mind, particularly beneficial for those living in older houses or lacking money for immediate repairs. Companies like Choice Home Warranty offer comprehensive solutions that are great value for your money.
However, deciding whether a home warranty is worth it depends on many factors, from the home’s age to your financial standing and risk tolerance. You must also consider the provider’s reputation and dependability, ultimately contrasting coverage plans against the cost.
This is a sponsored article. The article should not be considered as advice.