How to Find the Right Home Warranty Plan

Last updated on June 8, 2022

The home is one of the most important investments you will make in your lifetime. It is a place where our memories are made and shared with loved ones. It is also a considerable investment and one that needs to be protected.

Many different home warranty companies are operating out there, and it can be difficult to know which one is right for you. Let’s explore this in detail.

Table of Contents

What is a Home Warranty?

home warranty

The home warranty is a warranty service that helps cover the costs of repairs or replacements of major systems operating in your home, as well as certain appliances when they break down due to normal wear and tear.

What Does a Home Warranty Cover?

The coverage provided by a home warranty varies depending on the company and the plan you choose. Some home warranty companies only cover the home’s major systems, while others extend to appliances.

Most home warranties cover the major home systems, like electrical, plumbing, and heating/air conditioning. They may also cover appliances, such as the refrigerator, oven, and washer/dryer. Some home warranties also offer additional coverage for things like pools, spas, and septic tanks.

Also, worth considering are the different levels of coverage available, so you can choose the plan that best meets your needs. For example, some plans may have a basic level of coverage that covers the major systems of the home and an upgraded level of coverage that also covers appliances.

What Doesn’t a Home Warranty Cover?

Most home warranty plans exclude coverage for things like pre-existing conditions, cosmetic damage, and intentional damage. They also generally exclude coverage for appliances used for commercial purposes. It is essential to be aware of these details beforehand to understand what is and is not covered. 

Cost of Home Warranty Plan

The cost of a home warranty varies greatly depending on the company and the plan you choose. Almost all companies provide multiple plans and prices according to your requirements and budget, as AHS pricing has three tiers of options that you can choose from.

Most home warranty plans start around $350 per year, but the price can go up considering the company you use and the level of coverage you select. Some home warranty companies offer discounts if you purchase multiple years of coverage upfront. Others offer discounts if you have a home security system or are a member of specific organizations.

What to Consider While Choosing Home Warranty Plan

When choosing a home warranty plan, you should keep a few things in mind. 

Annual Payment

You’ll first want to consider the cost of the plan. Most home warranty plans have an annual payment, and you’ll want to make sure the price is something you’re comfortable with. You can often find discounts if you pay for multiple years upfront.

Coverage

Next, you’ll want to consider what the plan covers and what your needs are.  Do you need coverage for your home’s major systems, or do you also need coverage for appliances?

Most plans will cover major home systems and appliances, but there can be some variation in coverage. For example, some plans may not cover washers and dryers while others will. Make sure to read the fine print to know exactly what is and isn’t covered.

Deductibles

Another thing to keep in mind is deductibles. Many plans will have a deductible, which is the amount you have to pay before the home warranty coverage kicks in. Deductibles can range from $50 to $100, so you’ll want to choose a plan with a deductible you’re comfortable with.

Customer Service

Ensure you consider customer service when choosing a home warranty plan. You can read online reviews to get an idea of how well a company treats its customers.

When choosing a home warranty plan, these are a few things to keep in mind. Read the reviews of each company before making your decision.

Advantages of Home Warranty Plan

There are many advantages of having a home warranty plan. A home warranty can give you peace of mind knowing that your home is covered if something goes wrong. Another advantage of a home warranty plan is the coverage it provides. A home warranty can cover the major systems and your home appliances. A home warranty plan can also be flexible. Some plans allow you to choose the coverage you want. This means you can tailor the plan to fit your needs.

Disadvantages of Home Warranty Plan

One disadvantage of a home warranty plan is the cost. Home warranty plans can be expensive, and they usually have an annual fee. If you’re on a tight budget, a home warranty may not suit you.

A home is maybe your biggest asset, and you want to protect it. A home warranty plan can be a lifesaver in the event that something goes wrong. There are some disadvantages to consider, but a home warranty may just be the right choice for you.

Now that you know all about home warranties, it’s time to start shopping for a plan. Make sure to compare different companies and plans to find the best one for you. Read the reviews and compare the prices before making your decision, and you will find the perfect home warranty plan for you.