Comprehensive Guide to Home Warranty Providers and Their Advantages
This article offers a detailed overview of home warranty services, highlighting their benefits, limitations, exclusions, and how to effectively utilize them. It also reviews top providers, helping homeowners make informed decisions to protect their home systems and appliances efficiently.
Understanding Home Warranty Services and Their Benefits
Home warranty providers help homeowners manage the costs of repairing or replacing essential home systems and appliances that may fail due to normal use. Navigating the process of selecting a home warranty can be complex. Here's what you need to know before signing up.
Difference Between Home Warranty and Home Insurance
Homeowners insurance is typically required by lenders and covers damages caused by weather events or theft. It also protects against secondary damages from appliance or system failures. However, it involves a deductible, usually between $500 and $1000.
Home warranty plans specifically cover repairs and replacements of home systems and appliances. Each service visit often requires a fee, generally ranging from $50 to $100.
Limitations of Home Warranty Plans
Many providers include restrictions in their contracts that limit coverage.
The number of covered units or appliances varies per plan.
There are maximum payout limits; once reached, further repairs are not covered.
Items not explicitly included in the contract are excluded; review your policy carefully to ensure all desired appliances are listed.
Excluded Items and Conditions
Items damaged intentionally or misused are not covered.
Non-mechanical parts, like handles or knobs, are often not included.
Problems known before purchasing the warranty are typically excluded from coverage.
Using a Home Warranty
Report any system or appliance malfunction to your provider immediately. DIY repairs are usually not reimbursed unless authorized.
The company sends an approved contractor to diagnose and repair the issue. The homeowner pays a service fee at this stage.
Upon approval, repairs proceed; the home warranty covers the costs up to the policy limits.
Popular Home Warranty Providers
American Home Shield – Offers nationwide coverage with premiums ranging from $250 to $500, and service fees between $75 to $125.
First American Home Warranty – Established in 1984, providing nationwide plans with premiums from $280 to $470 and deductibles of $65 to $75.
The Home Service Club – Founded in 2008, with premiums around $400.
Choice Home Warranty – Features a $60 deductible, with premiums between $370 and $450.
Visit the official websites of these companies for detailed plans. Reading online reviews can help select the best provider for your home's needs.
