As a homeowner, you’re often spending (or setting aside) money for your mortgage, your homeowner’s insurance, your regular home maintenance, and the occasional home repair. What happens when your water heater, your refrigerator, or your clothes washer stops working? Are you prepared for the hefty out-of-pocket expenses that come with labor, repair, or replacement?
Inevitably, all major systems and appliances break down or stop working at some point due to normal wear and tear. The “when” is hard to predict and even harder to save for, which is why home warranty plans are so beneficial. We provide a list of the best home warranty providers, along with an overview of homeowner’s warranties and what to expect from your plan.
What are home warranty plans?
Home warranties are also called home protection plans. They are unrelated to homeowners insurance and mortgage insurance. Homeowners insurance financially protects your home from environmental causes (including floods and fires), as well as theft, and other accidents.
Home warranties, however, protect your home systems and appliances from everyday wear and tear. Wear and tear occurs from natural, everyday use. If you neglect your systems and appliances, and avoid basic home maintenance, then your appliances and systems may not be covered by a warranty plan.
What do home warranties cover?
Coverage varies widely, depending on the provider, but typically they cover everything from water heaters, which typically last an average of ten to 11 years, to dishwashers, which typically last an average of nine to 13 years. A lot of home warranty plans don’t cover septic tanks, pools, or well pumps, but some do.
Plan options are often broken into an appliances plan, a systems plan, or a combined plan. Coverage depends on the provider, but the best providers offer optional add-on coverage, which is ideal for homeowners who want comprehensive protection and peace of mind. If you choose a combined plan, here’s what’s typically covered:
- Electrical system
- Plumbing system
- Ductwork
- Central air conditioning and heating systems
- Ceiling fans
- Clothes washer and dryer
- Stove
- Oven/range
- Dishwasher
- Refrigerator
- Garage door opener
Many plans don’t cover stand-alone freezers, pools, spas, second refrigerators, septic pumps, trash compactor, and more. This is why add-on coverage is often preferred.
Home Warranty Benefits
Home warranty insurance saves you the hassle of calling neighbors to find a service technician who can replace a broken appliance. This is especially beneficial for homeowners who’ve just moved to a new city or neighborhood.
With a home warranty plan, you get access to a network of various professionals, including electricians, plumbers, and servicemen. You also get peace of mind knowing that if something happens to your major systems and appliances, you aren’t stuck fixing it yourself or paying hefty fees for labor and repair and replacement costs.
Just make sure you read the provider’s agreement to know the covered items. The best home warranty companies include a sample service contract on their website, outlining the coverage and the costs involved.
Who should buy a home warranty plan?
Maybe you’ve just bought a new home and installed all new appliances. If this is true, you may not need a warranty plan. However, if you fall into any one of the following categories, you might want to consider home warranty protection:
- Homeowner of new (used) home—If a protection plan isn’t included in your home purchase, then you might want to invest in one. Buying a new home is expensive, regardless of the home price and the mortgage rate. You don’t want to find out, six months in, that the majority of your home appliances and systems need repair. Buying a homeowners warranty can save you hundreds (or thousands).
- Homeowner of many years—If you’ve been in the same home for many years, you likely have appliances and systems that are nearing the end of their lifespans. Good news for you: home warranties can be purchased at any time. Before everything starts to break down, save yourself the hassle, and find a plan that fits your home needs.
- Home seller—When it comes to selling a home, you want the best offer possible. Warranties can make your home more appealing, as they offer a guarantee that if anything breaks down within the first year, the home buyer be covered from repair and replacement costs. Warranties also save you from an unwanted phone call from a new buyer should anything happen.
- Real estate agent—As with sellers, real estate agents can include warranties in their property offerings, or they can add them on to seal the deal with a new buyer.
Not sure if house warranty insurance is right for you? Consider how much money you spend on your home every year. Do you want to spend even more if something unexpected happens? For most, a home warranty is worth it.
What to expect from home warranty plans
Most home warranty companies offer one-year plans, which can be paid in a one-time or monthly fee. Flexible payment options, and agreement details, vary depending on the provider. Here’s what you can expect from a typical protection plan:
- You choose your plan and sign an agreement.
- Your plan goes into effect within a set timeframe. Typically, it begins 30 days after signing, but some providers require 90 days or more.
- When something breaks down or fails, you submit a claim either by phone or through the home warranty company’s online system.
- For every claim, you are expected to pay a service call fee, which typically ranges from $35-$75.
- The provider will process the claim and ensure a technician or service professional makes a visit to your home to determine and fix the problem.
Costs will vary, depending on the problem, which is why it’s important to read the terms and conditions of your plan. Some parts may be covered, while others may not.
Are home warranties worth the money?
Although home warranty pricing depends on the plan, they are usually affordable for most homeowners. Choice Home Warranty, for instance, starts at $1 per day which is $365 per year. Consider the average costs of replacing major appliances and systems:
- Clothes washing machines cost between $120-$500.
- Refrigerators/freezers cost between $200-$400, which doesn’t include the cost to repair an icemaker.
- Hot water heaters cost between $770-$1,453 to install.
- Garage door openers cost between $111-$319 to repair.
- Roof leaks cost between $351-$1,366 to repair.
The average cost for an appliance repair is $171, but most homeowners spend between $104-$238. If your hot water breaks, you’ll save hundreds with a plan, but even if two smaller systems or appliances break down, you’re bound to get your money’s worth.
The Daily Caller’s top picks for a home warranty
There’s no perfect plan, but there are reliable, affordable plans that match your needs. If you only want major home systems coverage, for example, you don’t need an appliances plan or a combined plan. However, we’ve found that combo plans offer the best value for the price.
Choice Home Warranty: The Best Overall Home Warranty Provider
In our research, we found that the best home warranty plan for most homeowners is Choice Home Warranty, which includes:
- Two plan options, both offering combined coverage, with the option of add-on coverage
- Affordable plans starting as low as $1 a day
- Reliable 24/7 customer service
- Network of highly-trained professionals
To get a free, customized quote, call 848-256-4657 or fill out this form.
They offer a great Basic Plan, with the option of choosing a Total Plan and adding on optional coverage, which includes:
- Well pump
- Limited roof leak
- Stand alone freezer
- Sump pump
- Septic system
- Septic tank plumbing
- Second refrigerator
- Central vacuum
- Pool/spa
To compare, we’ve reviewed other home warranty companies and have found benefits to all. Here is a brief overview of other home warranty companies and what they offer:
American Home Shield: The Best Home Warranty Provider For Appliances
As our runner-up, we also recommend American Home Shield, the best home warranty provider for appliances. American Home Shields offers:
- More than 45 years of experience
- Four different plans, with a “build your own plan” included
- Coverage for built-in food centers, trash compactors, and extended electronics
- A national network of more than 15,000 contractors
Call 888-878-4576 or fill out this form to get a free quote from American Home Shield.
Read through our complete review of the best home warranty providers, which goes into detail on the pros and cons of each.
Frequently Asked Questions About A Homeowners Warranty
What is the difference between a home warranty and a manufacturer warranty?
A manufacturer’s warranty often comes with an appliance or system. The warranty could last a few months, or one, two, five, or ten years, or more. Some offer limited lifetime warranties, which essentially means they cover certain parts, but not others.
They do not usually cover everyday wear and tear, but rather damage that incurs as a result of manufacturer defects. With a home warranty, you can cover more than one appliance and system, making it more reliable and beneficial. You also get labor, repairs, and replacements covered.
Do home warranty plans cover pre-existing conditions?
More home warranties don’t cover pre-existing conditions.
Do home warranty companies require home inspections?
One of the benefits of a home warranty: they don’t usually require home inspections. However, coverage will depend on specific factors. For instance, you need to maintain your systems and appliances (replace filters, etc.) in order to be covered.
Are homeowners warranty plans transferable?
Yes, most plans can be transferred to new owners so if you have a plan in place and are in the process of selling, you can transfer your plan to the home buyer.
Can you purchase a home warranty at any time?
Yes, home warranties do not have to be purchased at the time of sale. This is another reason why home warranty plans are better than manufacturer warranties.
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