Review of Home Warranty Companies: Pros and Cons
🔍 Introduction
Buying a home can be one of the most significant decisions of a person's life. Along with it comes the many responsibilities that homeowners must shoulder, including the maintenance and repair of their property. As a homeowner, you may encounter unforeseen issues such as a broken dishwasher, AC unit, or a leaking roof. It is during these times that home warranties can come in handy. Here in this article, we will provide you with a comprehensive review of home warranty companies to help you make an informed decision in choosing the right plan for your home.
Home warranty companies offer coverage for major home systems and appliances. It gives homeowners peace of mind knowing that they have a plan in place to repair or replace essential home appliances or systems whenever they break down. However, before making substantial investments in purchasing a home warranty plan, it is crucial to consider the strengths and weaknesses of each company.
Whether you're a new homeowner or looking for better coverage, this article will provide you with a detailed review of the best home warranty companies to help protect your investment.
🏠 Home Warranty Companies: Strengths and Weaknesses
Strengths
1. Peace of Mind: Home warranty companies offer coverage for some of the most significant home repair costs, such as HVAC, electrical, and plumbing. This coverage can provide peace of mind and protect homeowners from unexpected and expensive repair costs.
2. Customizable Plans: Home warranty companies provide customizable plans to meet the specific needs of each homeowner. As a homeowner, you can tailor your plan to cover the appliances and home systems that are essential to you.
3. Timely Repair Services: Most home warranty companies have a network of pre-screened contractors that offer timely repair services. Homeowners can expect technicians to arrive within 48 hours of filing a claim.
4. Budget-friendly: Home warranty plans are budget-friendly, offering homeowners an affordable way to maintain their homes and safeguard their wallets in the long run.
5. Transferable: In case you decide to sell your home, some home warranty companies offer the option of transferring the remaining coverage to the new homeowner, which can add value to your property.
6. No Deductibles: Unlike insurance, most home warranty companies do not require deductibles, which means homeowners pay nothing more than the annual fee and service fees when requesting repairs.
Weaknesses
1. Limited Coverage: Home warranty companies provide coverage for appliances and systems that require ordinary wear and tear. However, they may refuse to cover claims that involve damage from natural disasters or improper maintenance.
2. Service Fees: While home warranties are budget-friendly, some companies include a service fee in addition to the annual fee, which can add up.
3. Restricted Choice of Contractors: Most home warranty companies have a network of pre-screened contractors that they work with, which may not include contractors that homeowners prefer to work with or even licensed ones.
4. Limitations on Payouts: Some home warranty companies may have a cap on the amount that they will pay for repair or replacement of the covered systems and appliances.
5. Delayed Repairs: Sometimes, home warranty companies may take longer to send repair technicians due to contractor availability or parts procurement, which can leave homeowners in distress.
6. Claims Denial: Home warranty companies may deny claims if they find that the systems or appliances did not meet their eligibility requirements or had pre-existing problems.
🔍 Best Home Warranty Companies
| Company Name | Strengths | Weaknesses |
| Choice Home Warranty | 24/7 online claim support, unlimited callouts, customizable plans | Delayed repairs, strict procedure, contract regulations |
| American Home Shield | Combo Plans, Emergency service, 50-State service | Contractual obligations, lengthy claims processing |
| Select Home Warranty | Low rates, 24/7 customer service, wide coverage | Claims refusal, low payout limits, service fee |
| First American Home Warranty | No prerequisite inspection, reasonable pricing, prompt services | Service contract agreements, denied claims |
| Liberty Home Guard | Discounts on additional coverage, high-limit protection | Exclusions, contractor availability, customer service concerns |
📌 Frequently Asked Questions
1. What is a home warranty, and how does it work?
A home warranty is a service contract that typically covers the repair and replacement costs of major systems and appliances in your home due to regular use and wear and tear. If you have a home warranty, you can file a claim when an item covered by your warranty fails, and your warranty provider will send a pre-screened repair technician to fix it.
2. How is a home warranty different from homeowners insurance?
A home warranty covers the repair and replacement costs of appliances and systems in your home, while homeowners insurance covers the damages caused by unexpected events such as natural disasters, theft, and liability.
3. How much does a home warranty cost?
The cost of a home warranty plan varies depending on the coverage you choose and the provider. On average, a home warranty plan can cost between $350 to $600 annually, plus service fees.
4. What items are usually covered in a home warranty plan?
Most home warranty plans cover essential systems and appliances in your home such as HVAC, electrical, plumbing, kitchen and laundry appliances, among others.
5. Does a home warranty cover pre-existing conditions or damage?
Home warranty companies typically do not cover pre-existing conditions or damages that resulted from improper maintenance or natural disasters.
6. Is there a limit to the number of service calls I can make in a year?
Most home warranty companies have no limit on the number of service calls per year. However, the company may limit the total amount of coverage or the number of service calls for specific items.
7. Can I cancel my home warranty plan, and will I receive a refund?
Home warranty companies have different cancellation policies, but most allow you to cancel at any time. If you want to cancel, you may receive a pro-rated refund for unused months, although cancellation fees may apply.
8. How do I file a claim with my home warranty company?
You can file a claim with your home warranty company through their website or by phone. Provide the details of the problem and the item that needs repair, and the company will schedule a repair technician to evaluate and fix the issue.
9. What should I look for in a home warranty provider?
When choosing a home warranty provider, consider their reputation, coverage availability, pricing, plan customization, contractor network, claim procedures, and contract agreement.
10. Does a home warranty cover maintenance and routine repairs?
No, home warranties cover repairs and replacements due to regular wear and tear, but not maintenance or routine repairs.
11. Can I use my preferred contractor for repairs?
It depends on the home warranty provider. Most companies have a pre-screened contractor network, but some allow homeowners to choose their preferred contractor.
12. When should I consider buying a home warranty?
You should consider buying a home warranty when purchasing a home or when appliances and systems are approaching their expected lifespan.
13. Is a home warranty transferable to a new homeowner?
Some home warranty providers offer transferable coverage, allowing you to transfer the remaining coverage to the new homeowner if you decide to sell your home.
📝 Conclusion
Home warranty plans can help you save money and provide protection against unexpected repair costs for your home's appliances and systems. When choosing a home warranty provider, you should consider the strengths and weaknesses of each company and review all the plan details before making a decision.
In this review, we have provided you with a comprehensive guide to home warranty companies, including their strengths and weaknesses, best companies, and FAQs. By understanding what each plan offers, you can choose the best plan that meets your needs and safeguards your home and finances.
Make a wise decision and invest in a home warranty plan that gives you peace of mind!
📜 Disclaimer
The information provided here is for general informational purposes only and should not be considered as professional advice. The opinions and facts mentioned above are from our personal research; your experience may vary based on your location, property type, and other factors. It is essential to review the plan details thoroughly and seek the guidance of a professional before making any investment in a home warranty plan.