Homeowners insurance will cover your home and appliances in a natural disaster, but the coverage ends there. A home warranty is a service contract that covers repairs or replacement for home systems or appliances that have suffered from everyday wear and tear. If your dishwasher stops washing or your water heater stops heating, a home warranty can save you money.
You already have homeowner’s insurance, so you know that your home and your belongings will be covered in a natural disaster. What if your heating dies during an unusually cold winter? Sometimes life seems like a country song and your car breaks down, then your child or pet gets sick, so you have to miss work and pay more bills than usual, then the next thing you know is your AC breaks down right in the middle of the summer. What do you do?
With the right home warranty plan, you don’t have to worry about that anymore. You will know that you have help to pay for any surprise repair bills around the house. The best home warranty plans will replace your appliances and systems if their repair technicians can’t fix them.
So, are they worth it? The short answer is: yes. If you’re looking for a provider, our reviews team recommends Choice Home Warranty. Keep reading to learn more about what home warranty plans cover, as well as the research that led to our recommendations.
What is a home warranty plan?
A home warranty plan is a service contract. It is more similar to health, dental, and vision insurance for your appliances that it is similar to homeowners insurance. Let’s look at Choice Home Warranty’s plan to help you understand your options. You can start with a Basic Plan that will cover kitchen appliances—your dishwasher, built-in microwave, stove range, and oven are included. Water heaters are also included in the plan. This covers every home system from plumbing to electrical. Then you can upgrade to a Total Plan, which contains everything in the Basic Plan as well as additional systems like air conditioning. Larger appliances like the refrigerator and clothes washer and dryer are included. You can add your optional coverage of pool and spa equipment, central vacuum systems, sump pumps, roof leaks, and wells.
Different companies have different options. American Home Shield has the option of choosing one of their plans then adding on even more appliances and systems. Items such as a central vacuum, a deep freezer, or sump pump could be added to a basic plan as “optional coverage.” The right plan is the plan that works for your household needs. You’ll find plenty of variance between the different plans and home warranty plans.
Are there alternatives to a home warranty contract?
Many appliances come with a manufacturer’s warranty that will cover any defects that come from the manufacturing line. These will not include problems from normal wear and tear like a Home Warranty Contract. However, you will find that different parts of your appliances will be covered under extended warranties. You can call your appliance manufacturer and see if they offer extended warranties that you can buy.
Keep in mind that none of the manufacturer’s extended warranties will cover damages that occur from normal wear and tear. The best bet if you want to be protected from damages that occur over time from use is to buy a home warranty plan. If you have a home warranty plan, your technician should be aware if a repair is needed because of a manufacturer defect versus normal wear and tear.
What do I need to consider when choosing my home warranty plan?
How do you pick the right plan for your household? Consider if the plan will cover the appliances and systems you have in your home. Are you paying for appliances and systems that you don’t have in your household? How much will the service charge cost you out of pocket? Every company charges a different fee for the service provider to come to your home. How long will it take for a technician to come to your home? You don’t want to wait days for your heater to be fixed in the winter or your air conditioning to be running in the summer. Can you reach an agent at night and over the weekend? The most important thing is to have the terms of your contract in writing. If a company doesn’t want to put a commitment into writing, then it’s time to start looking for a company that keeps its word.
Who can benefit from a home warranty plan?
Real Estate agents and property flippers might be surprised to find out how quickly a home warranty plan can sell their properties—it even increases the market value of the home. A study by the Service Contract Industry Council found that homes with systems and appliance warranties sell for roughly $2300 more. Consumer studies show that a home warranty can sell a home 16.14% faster. Click here to find out if Choice Home Warranty is available in your state.
Using a home warranty when buying and selling homes
Offering a home warranty as part of a real estate transaction has many advantages. It will make you look knowledgeable and caring agent who looks out for the buyers. An agent can purchase a plan for their listing and may receive a free listing from their home warranty provider. It also can curb the hassle of dealing with a significant repair while a property is on the market. You know the property will be covered if there are surprise plumbing breakages or other issues.
The homeowner looking to sell their property will find several advantages to adding a home warranty plan to the benefits of buying their home. A home warranty plan increases the value of your home and ensures you don’t have any more costly bills to pay while getting the house on the market. Choice Home Warranty will help incentivize buyers to purchase your property quickly. It saves you the trouble of dealing with angry buyers if appliances break down after move-in.
New homeowners will receive the best discounts from home warranty companies. This is an ideal time to look for a plan. When you’re closing on your home, you don’t need to add extra bills if a system or appliance breaks down. Even if you perform regular upkeep and maintenance, you still can’t predict when something will stop working. Don’t get stuck paying for repairs within the first few months of moving in.
If the home you buy is older, there are increased chances you are inheriting older appliances and systems within the house. Even though everything passed a home inspection, how much longer will your new-to-you appliances and home systems last?
Does it matter if I have lived in my home for several years already?
It does not matter when you purchase your home warranty, whether it at the signing or years later, but there are a few things to consider. The longer you’ve been living in your home means the older your appliances will be. If your appliances are nearing the end of their life, you might want to buy a plan, so you don’t have to pay out of pocket for home system repairs or last-minute replacement appliances. The age of your appliances will not affect your application for a home warranty plan.
Are home warranties worth it? What are the cost benefits?
A home warranty plan will cost between $300-$600 a year. A repair bill for an AC conditioner will cost an average of $342. An electrician to come to your home will average $315. A repairman’s bill averages $399. Your water heater repair bill will cost $545 on average. A swimming pool heater repair bill is $411 on average. With Home Choice Warranty, you’ll pay just $75 whenever you need a technician for any of your appliances or systems. Better yet, they’ll help pay for replacing any unit or system that can’t be fixed.
When you have a Choice Home Warranty plan, you will have a network of trusted and professional providers. They will take the headache out of finding the right repairman. Plus, they come background checked, so you know that you’ll have trustworthy professionals entering your home. There’s nothing worse than hearing stories about shady repairers that don’t do the job they’re hired for, and then they steal from the client on top of it.
The Daily Caller’s Top Pick: Choice Home Warranty
Considered one of the best home warranty companies by the top review websites, you can’t go wrong with Choice Home Warranty. To get a free quote, call (848) 256-4657 or fill out a quick form on their website.
Choice Home Warranty offers the following benefits:
- Coverage in 49 out of 50 states
- Emergency service availability
- 24/7 access to customer service representatives
- 15,000 professional, experienced service technicians
- A personable, dedicated team willing to assist your needs
- Up-to-date technology
- High-quality service with affordable pricing
- Plans starting as low as $1 per day
Ranked on several trusted consumer websites, you will want to do business with Choice Home Warranty. Choice Home Warranty has personable customer service agents that are available night and day—even on holidays. They maintain a network of high-quality and professional experts throughout the country. Their customizable plans make them accessible for almost all homeowners.
Other Home Warranties to Consider
|American Home Shield |
Best Appliance Coverage
|Select Home Warranty |
|First American Home Warranty |
Best Claim Acceptance
|America’s First Choice |
Best Customizable Plans
Frequently Asked Questions
What is a home warranty?
A home warranty is a service contract, paid with a yearly premium that covers the repair or replacement of your home’s systems and appliances when they break down from regular use.
Why is buying a home warranty good for my budget?
A home warranty works best to protect your budget by covering the cost to repair or replace an item when it breaks down. The only costs you would be responsible for are the costs not covered by your warranty.
How is a home warranty different from homeowner’s insurance?
Homeowners insurance is used to protect your home from events that might happen such as theft or natural disasters. A home warranty helps protect your budget when covered appliances or home systems break down due to normal wear and tear.
What’s the difference between a home warranty and a manufacturer’s warranty?
A manufacturer’s warranty typically covers a single appliance or system but is limited in coverage and it doesn’t always cover the cost of the labor. With a home warranty, the plan you purchase will cover multiple home systems and is a more cost-effective way to protect your home systems and appliances.
Purchase Your Home Warranty Today
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