What is a Home Warranty?
- A service contract covering repair/replacement of home systems and appliances due to wear and tear.
- Covers items like HVAC, plumbing, electrical systems, and appliances (e.g., washers, refrigerators).
- Typically lasts 12 months, with premiums averaging $60/month.
Is a Home Warranty Worth It?
Home warranties are ideal if:
1. You own an older home: Helps maintain outdated systems and appliances.
2. Buying or selling a home: Adds value to buyers and offers peace of mind.
3. Limited savings: Provides financial security for unexpected expenses.
4. Not handy: Covers repair costs for first-time homeowners or non-DIYers.
5. You're a landlord: Protects against repair costs and can be built into rental fees.
What Does It Cover?
- Systems:
- Ductwork, plumbing, electrical, heating, cooling, water heaters.
- Appliances:
- Built-in microwaves, dishwashers, garbage disposals, refrigerators, washers/dryers, ovens.
Optional Add-Ons:
- Pools/spas, roof leaks, septic systems, water softeners, electronics.
Exclusions (What's Not Covered):
- Pre-existing conditions: Issues that existed before purchasing the plan.
- Cosmetic damage: Scratches or dents on appliances.
- Improper installations or modifications.
- Items covered by another warranty: Manufacturer or builder warranties.
How Does It Work?
- File a Claim: Online or phone request (response in 24-48 hours).
- Pay Service Fee: Ranges $75 - $125 per visit.
- Technician Visit: Contractor assesses and fixes the issue.
- Additional Costs: You pay beyond coverage caps, if applicable.
Waiting Period: Plans take effect after ~30 days unless waived.
Choosing the Best Home Warranty:
- Assess Needs: Older items or systems nearing the end of their lifespan should be covered.
- Compare Plans:
- Costs, service fees, add-ons, and annual payout caps.
- Read Contracts:
- Understand coverage limits and exclusions.
- Customer Reviews:
- Look for claims handling, contractor quality, and customer service ratings.
How Much Does it Cost?
- Average Monthly Premium: $36 - $68 ($450 - $600 annually).
- Service Call Fees: $75 - $125.
- Discounts: Multi-year plans or paying upfront may reduce costs.
Top PHome Warranty Companies:
- American Home Shield (Best Value)
- Starting Price: $29.99/month
- Plans: ShieldSilver, ShieldGold, ShieldPlatinum
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Features: No home inspection required, add-ons for electronics, pools, roof leaks.
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Choice Home Warranty (Quick Service)
- Starting Price: $46.67/month
- Plans: Basic Plan, Total Plan
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Features: Service response within 4 hours, flat $85 service fee, optional roof leak coverage.
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Liberty Home Guard (Easy Sign-Up)
- Starting Price: $49.99/month
- Plans: Appliance Guard, Systems Guard, Total Home Guard
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Features: Month-to-month plans, extensive add-ons like wine coolers and pools.
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Cinch Home Services (Simple Claims)
- Starting Price: $30.99/month
- Plans: Appliances, Built-in Systems, Complete Home
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Features: 180-day workmanship guarantee, water sensor included.
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America's 1st Choice Home Club (Service Guarantees)
- Starting Price: $40/month
- Plans: Systems, Silver, Gold, Platinum
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Features: 5-year rate guarantee, multiple add-ons like electronics protection.
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ARW Home (Electronics Coverage)
- Starting Price: $24.99/month
- Plans: Electronics, Kitchen Plus, Platinum Premier, 4-in-1 Bundle
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Features: $55 service fee, low annual caps on appliances.
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First Premier Home Warranty (Helpful Agents)
- Starting Price: $43/month
- Plans: Premier, Platinum
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Features: $75 deductible, annual payment discounts include roof coverage.
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Select Home Warranty (Coverage Options)
- Starting Price: $57/month
- Plans: Bronze Care, Gold Care, Platinum Care
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Features: Free roof leak coverage with annual payment, unlimited repairs.
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HomeServe (Best for Systems)
- Starting Price: $6.99/month
- Plans: A la carte options
- Features: Coverage for systems like EV chargers, plans tailored to needs.
Key Features to Consider:
- Coverage Scope: Appliances, systems, or combination plans.
- Service Fee: Usually $75 - $125 per service call.
- Plan Flexibility: Customizable options for add-ons like pools, septic systems, or electronics.
- Workmanship Guarantee: Check for guarantees (30 to 180 days) on parts and labor.
- Exclusions: Pre-existing conditions, cosmetic damage, improper installation.
Are Home Warranties Worth It?
Ideal for older homes, landlords, or those with aging systems.
Provides financial security and peace of mind for unexpected repairs.
\u274c May not be necessary for new homes with manufacturer warranties.
How to Choose:
- Assess Needs: List critical appliances and systems nearing the end of their lifespan.
- Compare Quotes: Focus on price, deductibles, and caps.
- Read Contracts: Check exclusions and payout limits.
- Customer Reviews: Look for feedback on claims handling and contractor quality.
FAQs:
- Is it required at closing?
- No, but often included by buyers/sellers in real estate deals.
- Does it cover roof leaks?
- Limited coverage for wear and tear (typically an add-on).
- Who regulates warranties?
- State agencies like insurance commissions or real estate boards.
- How long does it last?
- 12 months, renewable annually.
Pro Tip: Opt for annual payments to save on costs and access promotional offers like free roof coverage or extra months. Always compare quotes and check reviews to ensure the plan meets your specific needs. Keep in mind, a home warranty supplements, not replaces, homeowners insurance.
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