What To Look For In A Home Warranty

A home warranty can make a massive difference to the life of any homeowner. Home warranties help to cover the costs of repairs and replacements you might need when systems and appliances break down. A good warranty can save you a lot of money in the long term and provide some much-needed peace of mind, but you have to choose your plan with care.

There are many different warranty providers and plans out there, and not all are made equal. Warranties can vary in many different ways, such as the provider’s reputation, the amount of coverage offered by each plan, service costs and deductibles, customer service quality, flexibility, optional extras, and so on.

This is why it’s strongly recommended that homeowners read reviews, check out detailed comparisons, and take their time before deciding which home warranty to buy. If you get the wrong plan, you might regret it, but finding the right home warranty can help you sleep more easily each night. Here are some top factors we recommend you consider.

What is a Home Warranty, and Why Do I Need One?

When you buy a house, you probably hear plenty of terms that go into homeownership. You’ve likely heard that you need to get home insurance, mortgage insurance, and even a home warranty. While the insurance is probably something you need, not all people know if a home warranty is worth the money. However, if you want peace of mind knowing that your appliances and systems are covered should they break down, you may want to consider a home warranty.

A home warranty is a yearly service contract that will cover the cost of repairing or replacing certain appliances and systems within your home. Suppose any of these covered systems are appliances break under the agreement. In that case, the home warranty provider will connect you with a service professional who will come and fix or replace your appliance.

The level of coverage the home warranty offers will differ depending on the level and features offered within that home warranty. So when you were looking for a home warranty, it’s important to consider the appliances in your home to figure out what exactly you would like covered. This will help you determine the level of coverage that is necessary for your situation.

However, even if you figure out precisely what you want to be covered, finding the perfect home warranty can be tricky. That is why we have created this guide that outlines exactly what you should look for when searching for your home warranty.

What Should I Look for in a Home Warranty?

When searching for the perfect home warranty, there are many features that you should consider. This can seem incredibly challenging particularly for new homeowners. For example, how do you know what you need to get covered? What even goes into a home warranty? What is the ideal cost for my home? Do I need to add different a la carte options?

As you research home warranties, keep the following factors in mind as you look at the different companies and providers. That way, you can choose the home warranty that is best for your situation without having to worry about inadequate coverage.

• Cost

Of course, one of the most important factors to consider when it comes to choosing a home warranty plan is its cost. For any home warranty, you’ll need to pay an annual premium to have your systems and appliances protected. The cost of this premium can vary wildly, depending on which provider and plan you choose.

Some plans are much more budget-friendly than others but may have less coverage and lower limits, so you might not get the best value from them. Other plans can be pretty expensive but could still save you money in the long run if your home springs a leak, suffers an electrical problem, or has a major appliance breakdown.

• Coverage

Another important factor to consider when choosing a home warranty plan is the level of coverage offered. This is where many plans differ, with some of them being quite basic, purely covering the costs of your electrical, plumbing, and heating/cooling systems.

The comprehensive plans, however, will cover all major systems and appliances. There are also more premium plans available which offer various optional extras like coverage for pools, spas, sump pumps, and wells. Think about the systems and appliances in your home and consider what kind of coverage level you need.

• Speed and Efficiency

When something goes wrong with your home, like an issue with the plumbing or HVAC system, you’ll want to have it fixed as quickly and efficiently as possible. Again, this is an area in which home warranty providers and plans can vary greatly, as some will be far more efficient and rapid to respond than others.

If you encounter an issue, some providers will be ready to respond immediately and have a contractor at your home within a matter of hours. Others may have downtime hours, like weekends or evenings, and might not respond to you right away. Try and find a provider who can offer round-the-clock service requests.

• Fine Print

You also need to consider the fine print of your home warranty plan, as this is where you can find gaps or issues that could come back to bite you later on. Some plans, for example, only offer to cover the costs of repairs and won’t pay for total replacements of your appliances.

Some plans have limited service requests, meaning that the provider may be able to refuse to help if you have recurring issues in a certain period. Some warranties might only apply for relatively new items, too, refusing to cover those older than ten years, for instance. Reviewing the fine print before signing can give you a clearer picture of the full value of your plan.

Some standard terms used in the typical home warranty include:

• Service call fees and deductibles. This term refers to the amount you pay every time you call your home warranty provider and have someone come and fix an issue. Typically, you can choose the amount you want to pay for each home visit, and the price of your monthly payment for the home warranty will be different depending on the cost of your deductible.
• Annual limits. The annual limit of your home warranty refers to the total amount that you can spend per term. Typically, the range for an annual limit is between $500 and $2000 per system or appliance. If you exceed your term’s yearly limit, you will likely not be covered to fix that appliance or system.
• Unlimited service. Certain home warranty providers will offer unlimited service requests. This means that they will send out professionals and tradespeople as many times as needed to repair the cost of an appliance or system. Not every plan will offer this, and the ones that do will require a service call fee and tend to be on the pricier end.

Ease of Use

An important feature to consider is how easy it is to use your warranty service. For example, when a system or appliance breaks down, you want to be able to contact your home warranty provider to have someone come to your home as quickly as possible. If you need to go through a lengthy process to use the services provided in your home warranty plan, that plan may not be worth it.

Look for a plan that offers services with a quick turnaround and a customer service line that you can call anytime. Additionally, you may want to look for a home warranty provider that lets you choose which company you want to come to and fix your system or appliance. Not all warranty companies do this because many will have agreements with certain providers in the area, so you may need to pay a little extra if you want to choose your professional to fix your appliance.

Are Home Warranties Worth the Money?

Many people wonder if home warranties are, in fact, worth the monthly cost. When you decide to get a home warranty, it’s best to consider the age of your house, the age of major appliances and systems, and whether you feel confident in fixing these yourself if they were to break down.

If your home is new and the appliances are new, you may not need a home warranty that covers as much. However, if you purchase an older home with older appliances, a home warranty may be worth your consideration. Because major appliances and systems can cost thousands of dollars, it may be better to pay a small monthly fee for peace of mind knowing that you don’t have to drop thousands in the case of an appliance breaking down.

Final Word

These are just some of the main factors to think about when looking for the best home warranty. You’ll also want to consider each provider’s ratings, how much the service calls are when you need repair work, what sort of deductibles you can choose from, and how easily adjustable your plan is if you need to change it.

This certainly seems like a lot of factors to consider, doesn’t it? That being said, you could spend hours online researching every single home warranty provider in your area, and get overwhelmed quickly. Instead of spending hours of your time exploring online, check out our home warranty guides.

Our experts have reviewed the top home warranty providers offered today and have provided in-depth reviews. Check out our expert guides today to help you find the best home warranty.

*Any opinions, analyses, reviews, or recommendations expressed here are those of the author alone and do not constitute professional or expert advice.