As a homeowner, your home is likely one of your most significant investments. From the down payment to ongoing maintenance and repairs, owning a home comes with a hefty price tag. Therefore, it’s essential to protect your investment in every way possible. One way to do so is through a home warranty. A home warranty is a service contract that covers the repair or replacement of major home systems and appliances when they break down. In this article, we will discuss the ins and outs of home warranty companies, including how they work, their benefits, and the top companies in the market.
How Does a Home Warranty Work?
When you purchase a home warranty, you pay an annual or monthly premium to the warranty company. In exchange, the company agrees to cover the cost of repairs or replacements for covered items up to a specified limit. The coverage typically includes major systems like heating, air conditioning, plumbing, and electrical, as well as appliances like refrigerators, stoves, and dishwashers. If a covered item breaks down, you simply call the warranty company to file a claim. A technician will be dispatched to diagnose and repair or replace the item. You may be responsible for a small deductible or service fee, but the warranty company will cover the majority of the repair costs.
Types of Home Warranties
There are two types of home warranties: Basic and Comprehensive. Basic plans typically cover major systems like heating, cooling, electrical, and plumbing. Comprehensive plans, on the other hand, cover all systems included in the basic plan, as well as additional items such as appliances, washer and dryer, and even ceiling fans. When choosing a home warranty company, it’s crucial to understand the type of coverage offered and select a plan that best fits your needs.
What’s Not Covered by a Home Warranty?
While a home warranty provides coverage for unexpected repairs, it’s essential to know what’s not covered by the policy. Generally, home warranties do not cover pre-existing conditions, cosmetic issues, or items that have not been properly maintained. Additionally, certain items like pools, spas, and septic systems may require additional coverage or incur higher premiums. It’s important to read the terms and conditions carefully before purchasing a home warranty to understand what is and isn’t covered.
Pros and Cons of Having a Home Warranty
Like any other service, there are pros and cons to having a home warranty. Let’s take a look at both sides to help you make an informed decision.
Pros of Having a Home Warranty
- Peace of Mind: Knowing that you’re covered for unexpected repairs can provide peace of mind and reduce the stress of homeownership.
- Financial Protection: Home repairs can be expensive, and having a home warranty can help you avoid unexpected costs and protect your budget.
- Convenience: Filing a claim is typically easy and convenient, and the warranty company will handle coordinating repairs with certified technicians.
Cons of Having a Home Warranty
- Limited Coverage: While a home warranty may cover major systems and appliances, it may not cover all potential repairs. Certain items may require additional coverage or incur higher premiums.
- Deductibles and Service Fees: Depending on your contract, you may be responsible for a deductible or service fee for each claim filed.
- Exclusions and Fine Print: Like with any insurance policy, it’s essential to read the terms and conditions carefully to ensure you understand what is and isn’t covered.
Top Home Warranty Companies
Now that we have covered the basics of home warranties let’s take a look at some of the top companies in the industry. We have compiled a list based on customer satisfaction, coverage options, pricing, and overall reputation.
1. American Home Shield
American Home Shield (AHS) is one of the oldest and most well-established home warranty companies in the market. They offer comprehensive coverage plans for both homeowners and real estate professionals. AHS has a nationwide network of over 16,000 licensed and insured contractors, making it easy to find a qualified technician for repairs. Some of the key features of AHS include:
Coverage Options
AHS offers three different plans for homeowners: Systems Plan, Appliances Plan, and Combo Plan. The Systems Plan covers major systems such as HVAC, plumbing, electrical, and more. The Appliances Plan covers essential appliances like refrigerators, ovens, and washers and dryers. The Combo Plan combines both plans for complete coverage of home systems and appliances. AHS also offers customizable coverage for items not included in their plans, such as pools, spas, and septic systems.
Pricing
The cost of a home warranty from AHS varies depending on the plan selected and location. On average, their plans range from $29.99 to $54.99 per month, with a service fee of $75 to $125 per repair.
Customer Satisfaction
AHS has a solid reputation for customer satisfaction, with a Better Business Bureau rating of A+. They also offer a 60-day workmanship guarantee for all repairs completed by their technicians.
2. Choice Home Warranty
Choice Home Warranty is another top-rated company that offers comprehensive coverage for major home systems and appliances. They have been in business since 2008 and have served over 1 million customers. Some of the key features of Choice Home Warranty include:
Coverage Options
Choice Home Warranty offers two primary plans: Basic Plan and Total Plan. The Basic Plan covers major systems such as heating, cooling, plumbing, electrical, and more. The Total Plan includes everything in the Basic Plan, plus coverage for essential appliances like refrigerators, ovens, and washers and dryers.
Pricing
The cost of a home warranty from Choice Home Warranty ranges from $36.17 to $43.85 per month, with a service fee of $60 to $85 per repair. They also offer optional add-on coverage for items such as pools, spas, and sump pumps.
Customer Satisfaction
Choice Home Warranty has a Better Business Bureau rating of B+ and has received numerous awards for their customer service, including the 2019 Women’s Choice Award for America’s Most Recommended Home Warranty Company.
3. Select Home Warranty
Select Home Warranty is a relatively new player in the industry, founded in 2012, but has quickly gained a reputation for excellent customer service and competitive pricing. Some of the key features of Select Home Warranty include:
Coverage Options
Select Home Warranty offers three primary plans: Bronze Care, Gold Care, and Platinum Care. The Bronze Care plan covers major systems like heating, cooling, plumbing, and electrical. The Gold Care plan includes everything in the Bronze Care plan, plus coverage for essential appliances like refrigerators, dishwashers, and ovens. The Platinum Care plan combines both plans and adds coverage for items such as central vacuum systems and ceiling fans.
Pricing
Select Home Warranty offers competitive pricing, with plans ranging from $36 to $45 per month, with a service fee of $60 per repair. They also offer optional add-on coverage for items like pools, spas, and well pumps.
Customer Satisfaction
Select Home Warranty has a Better Business Bureau rating of B+ and has received several awards for their exceptional customer service, including the 2020 Best in Service award from HomeWarrantyReviews.com.
Conclusion
As a homeowner, investing in a home warranty can provide peace of mind, financial protection, and convenience. However, it’s essential to research and compare different companies to find the best coverage and pricing for your individual needs. When considering a home warranty, be sure to read the fine print carefully and ask questions to ensure you understand the coverage and limitations. With the right home warranty company, you can rest assured that your home and budget are protected.
web3host.org
