The listings featured on this site are from companies from which this site receives compensation. This influences where, how and in what order such listings appear on this site.
Advertising Disclosure
www.besthomewarrantyonline.com is a free online resource that strives to offer helpful content and comparison features to our visitors. We accept advertising compensation from companies that appear on the site, which impacts the location and order in which brands (and/or their products) are presented, and also impacts the score that is assigned to it. Company listings on this page DO NOT imply endorsement. We do not feature all providers on the market. Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on this page are disclaimed. The information, including pricing, which appears on this site is subject to change at any time.
Close
Why Homeowners Need a Home Warranty Plan
Why Homeowners Need a Home Warranty Plan
July 02, 2019 / Sarah Pritzker
Why Homeowners Need a Home Warranty Plan
July 02, 2019 / Sarah Pritzker

What’s a Home Warranty?

Every homeowner knows that you need home insurance, but not everybody is familiar with home warranty plans. A home warranty plan does the same thing for your big home appliances and systems as your phone warranty plan does for your smartphone; it protects you in case something breaks or stops working properly.

Just like with your home insurance, you’ll have to pay an annual or monthly premium for your home warranty plan. The amount varies, depending on how many items are included in the plan, how old they are, and the size of your home, but the average cost begins at around $400-$450. You’ll also have to pay a service or callout charge every time you call for a repairman, and there could be a deductible to pay as well, depending on your policy.

Home warranty plans cover many different items, from your plumbing system all the way to swimming pools. In general, you can expect a home warranty plan to cover:

  • Plumbing systems
  • Electrical systems
  • Washing machine and dryer
  • Dishwasher

The exact items covered depend on the home warranty plan you buy. For example, some of them include air conditioning units and heating systems as part of the basic plan, while others only cover plumbing and electrical systems.

Most home warranty plans allow you to add on extra coverage for the appliances that aren’t included in their basic plan, like your microwave, refrigerator, or garage door mechanism.

Our Top 3 Home Warranty Services

#1
VIEW PLAN
Pros
  • 25,000+ in-network contractors
  • 24/7 claims support
  • No home inspection required
  • Affordable, flat-rate service fee
Cons
  • Not available in Washington state
  • No systems-only plan
Choice Home Warranty is a home warranty company servicing homeowners in 49 states. The company has a network of more than 25,000 in-network contractors and processes claims 24/7. Choice Home Warranty also uses automated dispatching and claim tracking technology to process claims quickly. You can choose from 2 plans: a Basic Plan covering most of your home’s systems and appliances and a Total Plan covering all essential systems and appliances.
#2
VIEW PLAN
Pros
  • Award-winning service
  • Low premiums and deductibles
  • No home inspection required
Cons
  • $75 cancellation fee to terminate contract
  • Not available in every state
Select Home Warranty has competitive prices and extensive coverage of systems, appliances, and add-ons. Its award-winning service is fast and efficient, and technicians are available in most states. While there is a $75 cancellation fee if you terminate your contract, the company requires no home inspection. Making claims is also clear and straightforward and can be done 24/7.
#3
VIEW PLAN
Pros
  • No inspection or maintenance records required
  • Works in 49 states
  • Smart, flexible service fee pricing
Cons
  • Will work to fix an item multiple times before replacing
American Home Shield is a popular home warranty service because it offers flexible plans to fit all your needs, has competitive pricing on those plans, and offers free quotes over the phone. Plus, this service has a reliable claims department working around the clock. And with 17000 contractors on staff, you can have a technician at your house in no time. Are there any downsides to using American Home Shield home warranty? Let’s find out.

What’s the Difference Between a Home Warranty and Home Insurance?

Although both a home warranty and home insurance protect your home, they have different roles to play. A home warranty will cover the cost of repairing or replacing the appliances and systems in your home. It’s there to help you cope with the effects of natural wear and tear on your things, but not for the results of a natural or man-made disaster.

In contrast, you have home insurance to help you cope with a natural disaster or other kind of catastrophe, like a flood, fire, or burglary. Home insurance pays for damage to your home itself, and sometimes also to the appliances and systems within it. It won’t pay for the repairs you need due to normal use.

Why Homeowners Need a Home Warranty Plan

Home warranty plans generally save homeowners a lot of hassle and time. You don’t want to have to wait to get a broken heating system or blocked toilet repaired, but not all technicians are qualified to fix every type of appliance. With a home warranty plan, you can call a technician to come and repair it immediately, without wasting time searching for one. It’s an especially good idea for elderly or vulnerable people living alone, who struggle to carry out small repairs.

When you own a home, you’re always aware that something could break down or stop working properly at any time. You don’t know when, but you know it’s going to happen at some point. Home warranty plans mean that you’re ready to deal with it whenever it occurs, no matter where you are or what’s going on at the time.

Although you have to pay premiums and callout charges for a home warranty plan, they usually save you money on your appliances and systems in the long run. Without a home warranty plan, you’ll have to pay the usually much higher callout fee for a technician. You’ll need to pay for their labor, parts, and time, and if they can’t fix it, you’ll need to pay for a new one on top of all that. But if you have a home warranty plan, all those costs are covered by your premiums.

Home buyers and sellers benefit from a home warranty plan. It serves as a guarantee to the buyers that anything that breaks down before their move-in date will be replaced or repaired before they arrive. For the sellers, it's an added bonus to help sell your home and saves you from worrying that a broken toilet will ruin your deal at the last minute.

Choice is well known as a reliable home warranty company. It won’t charge you for your first month of membership, and you can also transfer your existing home warranty policy with another company for free. Choice has the biggest network of trained technicians – over 25,000 across the country – and a solid 30-day guarantee on labor and 90-day guarantee for parts. You don’t need a home inspection before you buy the policy, and it covers all appliances regardless of their age.

Protect Yourself with a Home Warranty Plan

Home warranty plans provide peace of mind for homeowners, as well as saving you time, money, and hassle. Choose the best home warranty plan for your needs to get full protection today.

By Sarah Pritzker
Sarah Pritzker is a professional writer who loves scouring the web looking for the coolest products and services at the best prices. Sarah writes for www.besthomewarrantyonline.com. Sarah has lived and traveled all over the world, but has finally settled down with her family in the Middle East - and yes, she misses winter!
Top Home Warranty Sites
American Home Shield
Read More
Visit Site >
First American
Read More
Visit Site >
HWA - Home Warranty of America
Read More
Visit Site >