Understanding Home Warranty Companies and Their Advantages
This article provides an in-depth overview of home warranty companies, explaining their benefits, limitations, coverage exclusions, and how to properly utilize them. It also reviews leading providers to help homeowners make informed choices, ensuring protection for essential home systems and appliances against unexpected repair costs.
A comprehensive guide to home warranty providers and the benefits they offer
Home warranty providers protect homeowners from the high costs of repairing or replacing essential home systems and appliances due to normal wear. Securing a home warranty can be complex, so it's important to understand key points before purchasing one.
How does home warranty compare to home insurance?
- Homeowners insurance typically covers the structure against damage from severe weather or theft, with premiums and deductibles ranging from $500 to $1000.
- In contrast, home warranties cover repairs and replacements of systems and appliances, often with a service fee of $50 to $100 per service call.
Limitations of home warranties
- Many providers impose restrictions within their contracts, including limits on the number of covered units.
- There may be overall coverage caps; once reached, further repairs are not covered.
- Certain items may be excluded if not listed explicitly in the contract. Always review coverage to ensure your appliances and systems are included.
What is excluded from coverage?
- Damage caused intentionally or due to misuse is typically not covered.
- Non-mechanical parts, such as knobs or handles, may be excluded.
- If issues existed prior to purchasing the warranty, those problems usually aren't covered.
How to utilize a home warranty
- Contact your warranty provider first whenever a system or appliance fails. Self-repair without approval may not be reimbursed.
- The provider will dispatch a technician for inspection; you pay a service fee.
- After diagnosis and approval, repairs or replacements will commence.
- The provider covers costs up to the contract’s limits.
Top home warranty companies
- American Home Shield – Offers nationwide coverage with premiums between $250-$500 and a service fee of $75-$125.
- First American Home Warranty – Established in 1984, provides coverage starting 30 days after enrollment, with premiums around $280-$470 and deductibles of $65-$75.
- The Home Service Club – Founded in 2008, premium around $400.
- Choice Home Warranty – Coverage with a deductible of $60, premiums from $370-$450.
Visit the official websites and review customer feedback to select the best provider for your needs.
