home waranty companies
home waranty companies
Home waranty companies can provide some safeguard against unexpected expenses for repairing or replacing appliances and systems in your home when they malfunction due to normal wear and tear. Regular maintenance of these units is necessary to be eligible for coverage, and a fee for each service call (usually between $55 and $150) is the homeowner's responsibility. The plans' annual cost typically falls within the range of $300 to $600, though some may be more expensive based on the coverage they provide.
What home warrenty companies cover
Home warranty plans differ from company to company, and there are usually multiple tiers with varying price points that offer different coverage options. Basic plans usually cover major systems like electrical, HVAC (heating, ventilation and air conditioning), and plumbing, as well as specific appliances such as dishwashers, ovens, and garbage disposals. More comprehensive plans may include additional items like refrigerators, washers and dryers, and even the roof.
If you are looking for financial protection for unexpected breakdowns or wear and tear on your home appliances and systems, a home warranty could be the solution. Unlike homeowners insurance, which typically doesn't cover such events, a home warranty can provide discounts on repair and replacement costs, up to a certain limit, for the duration of your policy.
To ensure that you get the best coverage, it's important to choose a reputable home warranty company that offers a range of coverage options, a wide selection of service providers, generous coverage limits, transparent coverage details, and a straightforward purchasing process and claims filing system.
Here are some of the top home warrenty companies in the market today, which you may want to consider if you're in the market for a home warranty plan.
Best home warrenty company
1. AFC Home Club
AFC Home Club offers four kinds of coverage:
- The Systems Plan includes the air conditioning, water heater, heating system, electrical system, plumbing and ductwork.
- The Silver Plan includes the washer, dryer, refrigerator, oven, range, dishwasher, garbage disposal and garage door opener.
- The Gold Plan includes everything in both the Silver Plan and Systems Plan.
- The Platinum Plan includes everything in the Gold Plan plus the ice maker, fans, and plumbing stoppages.
2. American Home Shield
American Home Shield offers three levels of coverage:
- ShieldSilver covers 14 major systems including heating and cooling, electrical and plumbing.
- ShieldGold adds nine more systems including kitchen and laundry appliances.
- ShieldPlatinum expands coverage to include elements like roof leak repairs and code violations.
3. Choice Home Warranty
Choice Home Warranty offers two levels of coverage:
- The Basic Plan includes the heating system, plumbing, plumbing stoppages, electrical, water heater, whirlpool bathtub, oven, range, stovetop, dishwasher, built-in microwave, garbage disposal, ductwork, garage door opener, and ceiling and exhaust fans.
- The Total Plan also includes the air conditioning system, refrigerator, washer and dryer.
4. Cinch Home Services
Cinch Home Services offers three kinds of coverage:
- Appliance coverage includes the washer, dryer, cooktop, dishwasher, freestanding ice maker, built-in microwave, range, range exhaust hood, refrigerator, trash compactor and wall oven.
- Built-in System coverage for the air conditioning (including ductwork), heating system (including ductwork), attic fans, ceiling fans, central vacuums, doorbell, electrical system, garage door opener, garbage disposal, instant hot/cold water dispenser, plumbing system, smoke detectors, plumbing system, smoke detector, sump pump, toilets, water heater and whirlpool/jetted tub.
- Complete Home coverage combines coverage from the appliance and built-in system packages.
5. First American Home Warranty
First American Home Warranty offers two levels of coverage:
- The Basic Plan includes the garbage disposal, dishwasher, oven range, stovetop, built-in microwave, trash compactor, refrigerator, washer and dryer.
- The Premier Plan also includes the water heater, plumbing, plumbing stoppages, heating, ductwork, electrical, garage door opener and central vacuum system.
6. Liberty Home Guard
Liberty Home Guard offers three kinds of coverage:
- Appliance Guard includes the washer, dryer, refrigerator, built-in microwave, dishwasher, garbage disposal, range, oven, cooktop, ceiling fans, exhaust fans and garage door opener.
- Systems Guard includes the air conditioning, heating, ductwork, plumbing, electrical system and water heater.
- Total Home Guard combines coverage from the Appliance Guard and Systems Guard packages.
7. Select Home Warranty
Select Home Warranty offers three levels of coverage:
- Gold Care includes the heating, cooling, plumbing, electrical, water heater and ductwork.
- Bronze Care includes the washer, dryer, garbage disposal, stove, oven, built-in microwave, cooktop and dishwasher.
- Platinum Care combines Gold and Bronze and adds plumbing stoppages, garage door opener and ceiling fan.
What is a home warranties companies?
A home warranties companies is a contract between a homeowner and a warranty company that provides coverage for repair or replacement of major home systems and appliances. Home systems can include things like HVAC, electrical, and plumbing systems, while appliances can include refrigerators, dishwashers, and ovens.
When a covered item breaks down due to normal wear and tear or age, the homeowner can file a claim with the warranty company. The warranty company will then send a service technician to assess the problem and, if covered under the policy, will repair or replace the item for a discounted fee or no cost at all.
Home warranties can provide peace of mind for homeowners, knowing that unexpected repair or replacement costs for major home systems and appliances will be covered by the policy. However, it's important to carefully review the coverage options, limits, and exclusions of any home warranty policy before purchasing to ensure that it meets your needs and budget.
How Does a home warrenty company Work?
A home warrenty company works by providing coverage for the repair or replacement of major home systems and appliances. Here's how the process typically works:
- Purchase a home warranty: Homeowners can purchase a home warranty from a warranty company, which will typically offer different coverage plans to choose from. Homeowners can select the plan that best meets their needs and budget.
- File a claim: When a covered item breaks down or stops working, the homeowner can file a claim with the warranty company. This is typically done by calling the warranty company's customer service department or submitting a claim online.
- Service request: The warranty company will then send a service technician to the home to assess the problem. The technician will determine if the item is covered under the policy and, if so, will provide a recommended course of action for repair or replacement.
- Repair or replace: If the item is repairable, the service technician will perform the repair for a discounted fee or no cost at all, depending on the terms of the policy. If the item needs to be replaced, the warranty company will provide a new appliance or system, also for a discounted fee or no cost at all.
- Pay the service fee: Depending on the terms of the policy, the homeowner may need to pay a service fee or deductible for each claim.
It's important to note that not all breakdowns are covered under a home warranty. Coverage typically applies only to breakdowns caused by normal wear and tear or age, and not to damage caused by the homeowner or a natural disaster. Additionally, coverage limits and exclusions will vary by policy, so it's important to carefully review the terms of any home warranty before purchasing.
Home Insurance vs. home warrenty companies: What’s the Difference?
Home insurance and home warrenty companies are two different types of coverage that provide protection for different aspects of your home. Here's a breakdown of the main differences between the two:
- Covers damage to your home and personal belongings caused by natural disasters, theft, and other events specified in the policy.
- Typically required by lenders if you have a mortgage.
- Does not cover normal wear and tear on appliances and home systems.
- Policy premiums are based on the value of the home, the location, and other risk factors.
- Covers the cost of repairs or replacement of major home systems and appliances due to normal wear and tear.
- Optional coverage that is not required by lenders.
- Does not cover damage caused by natural disasters, theft, or other events covered by home insurance.
- Policy premiums are based on the level of coverage, deductibles, and service fees.
In summary, home insurance covers damage to your home and personal belongings caused by specific events, while a home warranty covers the cost of repairs or replacement of major home systems and appliances due to normal wear and tear. Home insurance is typically required by lenders if you have a mortgage, while a home warranty is optional coverage that can provide peace of mind for homeowners looking to protect against unexpected repair or replacement costs.
How Much Does a home waranty companies Cost?
Home waranty companies plans typically come with an annual cost ranging from $300 to $600, which can be paid in monthly installments of $25 to $50. The exact cost of the plan will depend on factors such as where you live, the level of coverage you choose, and the items you wish to cover. The service fees charged by the warranty companies also vary, and they typically range from $55 to $150 per visit.
When you purchase a home warranty, you will need to pay for the cost of the plan upfront. Each time you need a repair, you will also be required to pay the service fee. However, this fee is usually much lower than the cost of paying for the entire repair out of your pocket.
For instance, according to HomeAdvisor, the average cost of repairing a refrigerator falls between $100 and $450, while repairing a washing machine can cost between $100 and $350. In comparison, a service fee of $75 seems reasonable. However, a higher service fee may not be worth it, and you may not need to use the warranty at all. In many cases, the peace of mind that comes with having a warranty is the main factor that determines whether a homeowner chooses to purchase one or not.
Who regulates home warranty companys?
Home warranty companys are regulated by the individual states in which they operate. In the United States, each state has its own regulatory agency responsible for overseeing the activities of home warranty companies. These agencies ensure that home warranty companies comply with state regulations and consumer protection laws.
In some states, home warranty companies are required to obtain a license and meet certain financial and operational standards. For example, some states require that home warranty companies maintain a certain amount of reserve funds to cover future claims. Other states may require home warranty companies to disclose specific information to consumers, such as the terms and conditions of their contracts, coverage limits, and service fees.
To determine the specific regulatory agency that oversees home warranty companies in your state, you can contact your state's department of insurance or consumer protection agency. They can provide you with information on licensing requirements, complaint history, and other important information to help you make an informed decision when selecting a home warranty company.
Should I Get a Home Warranty?
A home warranty can offer reassurance by providing financial assistance for costly home repairs or replacements, potentially reducing service expenses. Additionally, the warranty company can aid you in finding a contractor to complete necessary repairs.
However, a home warranty may not be necessary in all instances, as some coverage may already be provided for new homes and appliances. It is also possible that you may never require the service, or it may not save you much money. It is recommended that you check the benefits of the credit card you used to purchase appliances, as it may provide extended warranty coverage.
Instead of buying a home warranty, you can opt to self-insure by setting aside the monthly amount you would have paid for the warranty in a high-yield savings account. If appliances require repair or replacement, you can use the funds to cover those costs. If not, you can use the money for other purposes. The potential risk is that you may not have enough funds saved when you need them.
It is impossible to predict whether you will require additional coverage, but the peace of mind offered by home warranties may justify the cost.
How to find a home warranties companies
Finding a home warranties companies can be overwhelming, but here are some steps to help you get started:
- Research and compare: Start by researching various home warranty companies and comparing their plans and coverage options. You can find information online or ask for recommendations from friends and family.
- Check reviews: Look for reviews and feedback from other customers to gauge the quality of service provided by the home warranty company. You can find reviews on websites such as the Better Business Bureau, Yelp, and Google Reviews.
- Check the coverage: Make sure the home warranty company covers the appliances and systems you need to protect. Also, read the fine print carefully to understand any exclusions or limitations in the coverage.
- Compare costs: Compare the costs of different home warranty plans, including monthly or annual premiums, service fees, and deductibles. Consider the overall value of the plan and its coverage.
- Check the reputation: Look for a home warranty company with a good reputation for customer service and claims handling. You can check the company's reputation by looking at its rating with the Better Business Bureau or reading customer reviews.
- Ask questions: Contact the home warranty company directly and ask questions about its coverage, services, and customer support. A reputable company will be transparent and helpful in answering your questions.
By following these steps, you can find a home warranty company that meets your needs and provides reliable coverage and service.