By Polly Hyson
Owning a house is pretty awesome, but let’s be real, things break. That dripping faucet? Poof, there goes your afternoon. Luckily, home warranty companies offer plans that basically say, “Hey, if your fridge kicks the bucket or your heater throws a tantrum, we’ll cover repairs or replacements.”
But if you’re reading this, chances are you’re already feeling overwhelmed by all the different home warranty companies out there. This guide will break down everything you need to know about home warranties, how they work, and even some of the top companies to consider, like Choice Home Warranty.
What Is a Home Warranty?
Ever feel like your house is holding its breath, and you’re not sure which appliance is acting up? A home warranty is a safety net for those everyday breakdowns. It’s a service contract, like a subscription, that covers repairs or replacements for things like your fridge, dishwasher, water heater – you know, the usual suspects that wear out over time.
It’s different from regular home insurance, which is more like protection against big emergencies, like fires or a tree falling on your roof. This warranty is all about the appliances and systems that keep your home humming along, like your heating and cooling, plumbing and electrical, and even your oven.
How Does a Home Warranty Work?
With a home warranty, you don’t have to worry about an appliance on the fritz. Here’s how it works: Just call your home warranty company and let them know what’s happening. They’ll send a repair technician to your place to figure out what’s wrong.
If it’s something covered by your plan (remember, you pick the plan that fits your needs), the warranty company will pay to fix it or replace it, minus a service call fee you agreed to beforehand.
What a Home Warranty Covers
Curious about what exactly a home warranty covers? Let’s break it down. First, the big stuff: your heating and cooling system (HVAC), electrical wiring, and plumbing are all under the warranty umbrella.
And, of course, the appliances that keep your life running smoothly – fridge, dishwasher, oven, washer, and dryer – are usually covered, too. Some companies even let you add extra protection for things like pools, hot tubs, or even your well pump.
What a Home Warranty Won’t Cover
Here’s the thing: a home warranty isn’t a magic fix-it-all for everything in your house. There are some things it won’t cover. These may include problems that were already there before you got the warranty, stuff that breaks because it wasn’t installed right in the first place, or just cosmetic issues and scratches.
A home warranty is all about breakdowns from regular wear and tear, not stuff that was messed up from the start.
>>Check out Choice Home Warranty plans
Benefits of a Home Warranty
Alright, so why would you even want a home warranty? Here’s the deal: they can be a lifesaver, especially for your wallet. Appliance repairs and replacement can cost a ton, and a warranty can shield you from those surprise bills.
Plus, it’s super convenient. Appliance on the blink? No need to scramble to find a repair person – the warranty company sets it all up. Think of it as peace of mind knowing you’re covered if your heating system breaks or your dishwasher decides to take a vacation.
How To Choose the Best Home Warranty for You
Picking the right home warranty is like finding the perfect pair of comfy slippers – it has to fit your needs just right. Let’s walk you through a few things to consider:
- Customer service: You want the best home warranty company that’s there for you whenever like a superhero with a 24/7 hotline. And ideally, they have a reputation for swooping in and fixing claim issues fast.
- Compare coverage: Not all warranties are created equal. Make sure the plan you choose covers everything you want it to, from your fridge to your plumbing.
- Consider the cost: Warranty prices vary, so find one that fits your budget, including any sneaky service fees they might have.
- Check for exclusions: We recommend reading the fine print because sometimes warranties have sneaky exclusions, like certain repairs or pre-existing conditions. You don’t want any surprises.
- Read reviews: It’s always insightful to see what other people are saying about the best home warranty company you’re considering. Customer reviews can be your best friend, giving you the inside scoop on a company’s service.
What Is the Best Home Warranty Company in 2024?
Okay, so you’re ready to ditch the repair roulette and get a home warranty, but with all these companies out there, who do you choose? Don’t worry, we got you covered (literally!). Here’s a rundown of some of the best home protection providers for 2024, each with their own perks:
1. Choice Home Warranty: Best for High Coverage Limits
Pros
- High coverage cap of $5,000 per covered item
- Flat rate service fee
- Affordable plans
- Easy signup process
- Get the first month free
Cons
- Limited add-ons
- Not available in Washington
Why Choose Choice Home Warranty?
Want top-of-the-line protection? Choice Home Warranty might be your match. They have the highest coverage caps on this list, up to $5,000 per item, so you can breathe easy knowing a big repair won’t break the bank.
>>Check out Choice Home Warranty plans
2. American Home Shield Warranty: Most Experienced
Pros
- Over 50 years of industry experience
- Comprehensive coverage options
- Roof leak repair is included in the highest-tier plan
- $3,000–$6,000 for systems and appliances Limits
Cons
- Offers limited options for add-on coverage
- May take up to 48 hours to respond to a claim
Why Choose American Home Shield?
Experience matters and American Home Shield (AHS) is practically the Gandalf of home warranties. They’ve been around forever and know their stuff. Plus, their coverage caps are pretty darn good, ranging from $3,000 to $6,000 for different things in your house.
>>Check out American Home Shield Warranty plans
3. First American Home Warranty: Our Pick for Add-on Coverage
Pros
- High coverage limits
- Offers a First Class Upgrade that includes more extensive coverages
- Plans cover more standard components than competitors, even without upgrades
Cons
- More expensive monthly premiums
- Unclear limits on systems coverage
Why Choose First American Home Warranty?
First American Home Warranty is your warranty genie if you need some extra bells and whistles. They have an upgrade option (First Class Upgrade) that lets you cover even more stuff in your house.
>>Check out First American Home Warranty plans
4. First Premier Home Warranty: Our Pick for Discounts
Pros
- Discounts for multi-year plans for seniors, military personnel, and more
- High coverage limits and customer satisfaction
- Many add-on options
Cons
- A newer company with a less established reputation
Why Choose First Premier Home Warranty?
First Premier Home Warranty is our top pick for discounts. The company offers several discounts on their plans, making it an excellent option for homeowners looking for savings.
>>Check out First Premier Home Warranty plans
5. Select Home Warranty: Most Budget-Friendly
Pros
- Affordable plans
- Free roof leak coverage with online policy purchase
- $3,000 coverage limit on air conditioning systems
Cons
- Unclear service fee assigned during checkout
- Lower-than-average $500 coverage limit on most items
Why Choose Select Home Warranty?
Select Home Warranty might be your best bet if you’re on a budget. Their plans are under $50 a month, and their service fees are lower than most. Plus, they throw in some free roof leak coverage and a generous air conditioning limit.
>>Check out Select Home Warranty plans
How Much Does a Home Warranty Cost?
Generally, a basic plan can run you anywhere from $300 to $600 a year, while a super comprehensive plan might set you back more, like $800 or more. There’s also usually a service call fee, kind of like a copay, when you need a repair person to come out. This can range from $75 to $125 each time.
How to File a Home Warranty Claim
Filing a home warranty claim typically involves the following steps:
- Grab your phone (or laptop) and contact your home warranty company. You can usually call them or log in to their online portal to report the problem.
- The warranty company will then be your repair fairy godmother and schedule a service technician to visit your house and diagnose the issue.
- Heads up, you’ll likely need to pay a service fee, kind of like a copay, for the technician’s visit. You’ll still be responsible for this fee even if they can’t fix it under the warranty.
- Finally, if your warranty covers the problem, the technician will fix or replace the item for you. But if it’s not covered, then you’ll need to find someone to fix it yourself.
>>Check out Choice Home Warranty plans
Frequently Asked Questions About Home Warranties
We look at common questions people ask about home warranty companies.
What To Do if Your Home Warranty Claim Is Denied?
If your claim gets denied, first check your contract to make sure the item was supposed to be covered. Think of it like a detective game – find the clue in the contract. If you’re sure they messed up, appeal the decision. Still no luck? You can file a complaint with your state’s Department of Insurance or talk to a lawyer. Plus, don’t forget to report a bad home warranty experience to the FTC.
What Voids a Home Warranty?
Several factors can void a home warranty, including improper installation or maintenance of covered items, pre-existing conditions, and failure to report a problem on time. Always follow your warranty provider’s guidelines to avoid voiding your warranty.
What Is the Best Home Warranty Company With No Waiting Period?
Most home warranty companies have a waiting period before coverage begins, typically 30 days. However, some companies may offer plans with no waiting period if the home has been inspected recently or if the warranty is purchased during a real estate transaction.
How Are Home Warranties Regulated?
Home warranties are regulated at the state level. Most states have laws and regulations to protect consumers, and home warranty companies must comply with these rules. Some states require home warranty companies to be licensed or registered, while others may have specific laws about what must be included in a home warranty contract.
Are Home Warranties Worth It for Older Homes?
Home warranties can be particularly beneficial for older homes, as they are more likely to have systems and appliances that break down due to age and wear. A home warranty can help cover the cost of these repairs or replacements.
Does a Home Warranty Cover Existing Problems?
Home warranties generally do not cover pre-existing conditions, meaning problems that existed before the start of the warranty period. However, some companies may offer coverage for unknown pre-existing conditions, issues that need to be apparent during a home inspection.
>>Check out Choice Home Warranty plans
Is a Home Warranty Worth It?
A home warranty can be worth it if you want to avoid the unexpected costs of repairing or replacing broken systems or appliances. It can be particularly beneficial for homeowners who don’t have a large emergency fund or who need to be more handy with repairs.
Are Home Warranties Mandatory?
Home warranties are not mandatory. While they can provide valuable protection for your home’s systems and appliances, it’s up to each homeowner to decide whether a home warranty is worth the cost.
How Can You Avoid Home Warranty Scams?
To avoid home warranty scams, research any company you’re considering. Check their ratings on the Better Business Bureau, read customer reviews, and make sure they are licensed and regulated by your state’s Department of Insurance. Be wary of companies that offer deals that seem too good to be true.
Summary: What Is the Best Home Warranty Company?
In a nutshell, a home warranty is like a safety net for your house. It can cover repairs or replacements of stuff that breaks down from regular wear and tear, like your fridge, dishwasher, or heating system.
However, it’s not a magic fix-it-all for everything, and there are usually waiting periods and exclusions to consider. That said, a home warranty can definitely give you peace of mind, knowing you’re protected from unexpected repair costs.
We went through some of the top companies, and Choice Home Warranty is one of the top choices out there. But it’s always a good idea to shop around or read reviews like this one to see what other companies offer before making a decision. After all, with a little research, you can find the perfect warranty plan to keep your home running smoothly without breaking the bank.
>>Check out Choice Home Warranty plans
All the photos in the article are provided by the company(s) mentioned in the article and are used with permission.
About the Author
Polly Hyson is a talented writer and editor with over a decade of experience. She is competent in a number of niches but specializes in consumer health and finance topics. When not writing, she’s probably traveling, swimming, or doing Yoga.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
