Top-rated Home Warranty Providers for 2018

Many homeowners confuse home insurance with home warranties, which protect your property and belongings from disasters like fires and natural events. While lenders usually require home insurance, warranties are optional and help cover unforeseen repair costs for appliances and systems. This article explains what home warranties cover, common exclusions, pricing, and advantages and disadvantages. Understanding these details helps homeowners choose the right plan to safeguard against unexpected expenses associated with appliances, plumbing, and more.

Coverage of Home Warranties

Warranty coverage varies based on the plan selected and the home's age or condition.

A builder’s home warranty typically covers major structural issues for up to 10 years. Coverage for drywall, appliances, HVAC, electrical, and plumbing usually lasts from 6 months to a few years. For existing homes, warranties generally fall into these categories:

System-focused Plans

These plans mainly cover heating, cooling, plumbing, electrical, and water heating systems.

Hybrid Plans

Hybrid plans combine system and appliance coverage, offering comprehensive protection but at higher costs.

Appliance-centered Plans

This coverage typically includes ranges, dishwashers, washers, dryers, ovens, and built-in microwaves. Refrigerators may or may not be included.

Additional Coverages

Common add-on options include spas, pools, septic systems, wells, and hot tubs. Many providers allow customization for items outside standard plans.

Be aware that some damages may not be covered, often leading to customer complaints. To avoid surprises, read policies carefully, focusing on:

Pre-existing Conditions

Warranties do not cover issues existing before policy purchase. For example, if a system is already broken, it won't be repaired under the plan.

Coverage Limits

Carefully review what's excluded. For instance, garbage disposers are covered, but repairs for food jams might not be. Certain appliances like refrigerators might be limited to kitchen placement, and electronic features like ice makers could be excluded.

Waiting Periods

Coverage often starts after 15-30 days. If you have prior home insurance or buy a home with existing coverage, this period could be reduced.

Service Restrictions

If you choose your own repair technicians outside the warranty provider, you generally forfeit reimbursement.

Coverage for Unexpected Repairs

Warranties mainly cover sudden failures and usually exclude routine maintenance or issues caused by neglect or improper upkeep.

Home warranties help homeowners avoid large repair bills when critical systems or appliances fail. Since their inception in 1971 by industry innovator American Home Shield, these plans have grown in popularity. Top providers for 2018 include:

Complete Protect for transparency

Complete Protection for affordability and limited exclusions

American Home Shield for customization options

Always thoroughly read your policy before signing. Understand both benefits and limitations. Although restrictions exist, a home warranty offers peace of mind by reducing unexpected repair expenses, making it a worthy investment for many homeowners.

Leading Home Warranty Providers of 2018

Most Transparent: Total Protect

Total Protect simplifies obtaining quotes and choosing plans, offering three customizable options.

Most Cost-effective and Limited Exclusions: Total Appliance Protection

This provider charges no service or maintenance fees, ensuring that you pay only for the plan itself with no hidden costs.

Best for Customization: American Home Shield

The largest home warranty company nationwide, AHS allows homeowners to select from various plans and tailor coverage to their needs.