Comparison of Home Warranty Companies
The Best Home Warranty Companies for Your Needs
Home warranty companies offer a valuable service that provides homeowners with peace of mind. These companies cover the repairs and replacements of home appliances and systems such as HVAC, plumbing, and electrical systems, ensuring that homeowners do not have to pay for expensive repairs out of pocket. However, not all home warranty companies are created equal. Here are the best home warranty companies that you should consider:
🏆 American Home Shield 🏆
American Home Shield is the largest and oldest home warranty company in the industry, founded in 1971. The company offers comprehensive coverage plans and a customizable Build-Your-Own Plan for homeowners who want to pick and choose which items to cover. American Home Shield's plans come with low service fees, and their contractors are reliable and professional.
🥈 Choice Home Warranty 🥈
Choice Home Warranty provides two coverage plans: the Basic Plan and the Total Plan. The Basic Plan covers major systems and appliances, while the Total Plan offers full-coverage. Unlike other home warranty companies, Choice Home Warranty does not require a home inspection or maintenance records before providing coverage. The company also has a 24/7 claims service and extensive network of contractors.
🥉 Select Home Warranty 🥉
Select Home Warranty offers three different coverage plans with add-ons available. The company has a low service fee and a 24/7 hotline for claims. Select Home Warranty also has a 30-day guarantee, allowing homeowners to cancel coverage if they are not satisfied.
Introduction
Buying a new home is one of the biggest investments a person can make. As a homeowner, you want to ensure that your home appliances and systems are in top condition. However, unexpected breakdowns can be costly, and homeowners often find themselves unprepared. Home warranty companies provide a solution to this problem by offering coverage for unexpected repairs or replacements of home appliances and systems. A home warranty policy ensures that homeowners can have peace of mind, knowing that they are covered against unexpected costs.
With a plethora of home warranty companies on the market, it can be overwhelming to choose the right one. Each company offers different plans with varying levels of coverage, making it crucial for homeowners to compare and contrast the options available. This guide will provide a comprehensive comparison of home warranty companies to help you choose the right company for your needs.
Strengths of Comparison of Home Warranty Companies
There are many strengths to using a home warranty company to provide coverage for your home. Here are the most significant benefits of using a home warranty:
1. Coverage for Home Systems and Appliances
A home warranty policy covers unexpected repairs or replacement of home appliances and systems. This coverage can ease unexpected financial pressures on homeowners, providing them with peace of mind.
2. Cost Savings for Homeowners
Home warranty companies offer cost savings that can help homeowners to save money. The cost of repair or replacement of home appliances and systems can be expensive, so having coverage from a home warranty company can save homeowners a significant amount of money.
3. Convenience and Ease of Use
Home warranty companies offer convenience and peace of mind, knowing that repairs or replacements are just a phone call away. By using a home warranty company, homeowners can avoid the hassle of finding quality service providers, which can be time-consuming and stressful.
4. Customizable Coverage
Many home warranty companies offer customizable coverage for homeowners. Buyers can choose from a range of plans that suit their needs, ensuring that they only pay for the coverage that they need. This allows homeowners to save money by avoiding expensive coverage they may not require.
5. Professional Service Providers
Home warranty companies typically have a roster of qualified and licensed service providers. These providers are knowledgeable and skilled at performing maintenance and repairs on home systems and appliances. By using professional service providers, homeowners can rest assured that their home is in good hands.
6. Elimination of Negotiations
Most home warranty companies have contracts with the service providers they use, and will handle all of the negotiations for the homeowner. This eliminates the hassle of bargaining the price of repairs and replacements, ensuring homeowners get the best deal possible.
7. Increase in Home Resale Value
A home warranty policy can increase the resale value of your home. The warranty provides buyers with peace of mind knowing that they are protected against unexpected expenses related to the home's systems and appliances.
Weaknesses of Comparison of Home Warranty Companies
While there are many benefits to using a home warranty, there are also some weaknesses to consider. Here are the most significant concerns when it comes to home warranties:
1. Limited Coverage
Home warranty policies cover a limited range of home systems and appliances. Buyers who require certain coverage may find that the typical coverage options do not meet their needs.
2. Cost of Premiums and Service Fees
The premiums and service fees associated with home warranties can be costly. Buyers must assess the value of the coverage versus the cost of the policy before making a purchase.
3. Restrictions and Exclusions
Home warranty companies have restrictions and exclusions on their policies. Some policies have specific waiting periods before coverage is active, and others have specific coverage limits. Read the policies carefully to understand all of the exclusions and restrictions.
4. Claims Procedures
Some homeowners have reported frustration with the claims procedures of home warranty companies. Some companies require extensive documentation before processing a claim, which can cause delays and inconvenience for the homeowner.
5. Contractor Quality
The quality of contractors for home warranty companies is inconsistent. Some providers may offer poor quality service, leaving homeowners dissatisfied with the service they receive.
6. Limited Availability
Home warranty coverage is not available in all areas. Some parts of the country are not covered by certain providers, so homeowners must consider availability before making a purchase.
7. Length of Coverage
The length of coverage for home warranty policies is limited. Buyers must renew their policies each year or every few years, depending on the provider. This means that homeowners must continue to pay premiums and service fees to maintain coverage.
Home Warranty Comparison Table
| Home Warranty Company | Coverage | Service Fees | Contractors | Availability |
|---|---|---|---|---|
| American Home Shield | Comprehensive coverage plans and customizable Build-Your-Own Plan | Low service fees | Reliable and professional contractors | Nationwide |
| Choice Home Warranty | Basic Plan and Total Plan | Low | 24/7 claims service and extensive network of contractors | Nationwide, except California and Washington |
| Select Home Warranty | Three different coverage plans with add-ons available | Low service fee | 24/7 hotline and extensive network of contractors | Nationwide, except California, Nevada, and New York |
Frequently Asked Questions
1. What does a home warranty cover?
A home warranty covers the repair or replacement of home appliances and systems, such as HVAC, plumbing, and electrical systems. The coverage varies depending on the plan you choose and the provider.
2. How much does a home warranty cost?
The cost of a home warranty varies depending on the provider and the coverage options. Plans typically range from $300 to $600 per year, with service fees of $75 to $125 per visit.
3. What is the difference between a home warranty and homeowner's insurance?
A home warranty covers repairs and replacements of home appliances and systems due to wear and tear, while homeowner's insurance covers damages caused by external events such as fire or natural disasters.
4. How do I file a claim on my home warranty?
Contact your home warranty company's claims hotline to file a claim. The company will send a licensed contractor to assess the problem and determine if the repair or replacement is covered under your policy.
5. How long does a home warranty last?
The length of a home warranty varies depending on the provider. Most policies last for a year, with the option to renew at the end of the term.
6. Can I choose my own contractor?
Some home warranty companies allow you to choose your contractors, while others have pre-contracted service providers. Check with your provider to see if you have the option to choose your contractor.
7. What is the waiting period for a home warranty?
Home warranty companies have different waiting periods before coverage begins. Check with your provider to see their specific waiting period requirements.
8. Can I cancel my home warranty policy?
Most home warranty companies have a cancellation policy. Check with your provider to see if they have a cancellation fee and if there is a specific period when you can cancel.
9. Does a home warranty cover pre-existing conditions?
Most home warranty companies do not cover pre-existing conditions. Check with your provider to see what conditions are considered pre-existing.
10. Do I need a home inspection before purchasing a home warranty?
Some home warranty companies require a home inspection before providing coverage, while others do not. Check with your provider to see their requirements.
11. Are there limits on how many service calls I can make?
Most home warranty companies have a limit on the number of service calls you can make each year. Check with your provider to see their specific limit.
12. Are there any differences between home warranty plans?
Yes, home warranty plans offer varying levels of coverage. Some include comprehensive coverage, while others have more limited coverage options. Check with your provider to see the coverage levels in each plan.
13. Does a home warranty policy affect the resale value of my home?
Yes, a home warranty policy can increase the resale value of your home. Buyers are more likely to purchase a home with a home warranty policy as it provides them with peace of mind.
Conclusion
Home warranty companies offer homeowners peace of mind by providing coverage for unexpected repairs or replacements of home appliances and systems. It is crucial to compare and contrast the options available to ensure that you choose the right plan for your needs. Make sure to consider the strengths and weaknesses of home warranties, and examine the coverage, service fees, and contractors of each provider.
Overall, American Home Shield, Choice Home Warranty, and Select Home Warranty are some of the best home warranty companies on the market as they offer reliable and professional service, low service fees, and customizable coverage options. By choosing one of these providers, you can guarantee that your home is in good hands.
Don't wait until unexpected repairs cost you thousands of dollars. Take action now by finding the right home warranty company for your needs.
Closing Words
While home warranties offer many benefits, it is essential to research the best provider for your needs. Make sure to read the policies carefully and consider all of the strengths and weaknesses of home warranties before making a purchase. At the same time, when used correctly, home warranties can provide you with peace of mind and protect your home's value.