Guide To Getting A Home Warranty
Getting a home warranty is an important part of protecting your most valuable asset. Read a comprehensive guide to getting a home warranty in 2021.
Getting a home warranty is an important part of protecting what is likely your most valuable asset. Your home and everything inside it deserve added protection. You and your family also deserve the peace of mind from knowing you are covered even when emergency repair funds are unavailable. Home repair bills are often expensive. A home warranty helps protect you from unexpected financial hardship and stress.
Top nationwide home warranty providers are available in-person and online now. Locating the best home warranty provider for your needs is easier today than ever before thanks to online rate-comparison sites and actual customer reviews. Prices for various home warranty plans vary based on the needs of your home and the state in which you live. Purchasing a home warranty might be the best decision you make pursuant to protecting your home and family. Read on to learn important information in a comprehensive guide to getting a home warranty in 2021.
Home Warranties 101
Homes warranties are essentially contracts between warranty providers and homeowners. Homeowners pay an annual or monthly premium for the length of the warranty. In exchange for these payments the issuer of the warranty provides discounted repair services for items/systems covered under the warranty. Items and principal systems typically covered under home warranty protection include your HVAC (heating, ventilation and air conditioning), electrical systems and plumbing. Certain home warranties also include specified major appliances.
Home warranty issuers typically have contractual agreements with specified service technicians and specialists in various repair fields. Provider networks are vast, which makes finding repair technicians near you convenient. Homeowners are required to choose from a specific list of contracted service providers as opposed to choosing their own, however. Each repair service provider charges a service fee homeowners must pay out-of-pocket. These fees are still considerably less than normal costs for repairing/replacing appliances and systems without home warranty coverage.
Home Warranty vs. Homeowners Insurance
Homes warranties are typically optional purchases, whereas homeowners insurance is required by lenders as a condition of granting you a home mortgage loan. Homeowners insurance covers expenses caused by damage and theft, provided the damage/theft impacts the construct of your home and enclosed possessions. A home warranty provides reduced pricing on applicable replacements/repairs, many of which are not covered by a homeowners insurance policy. A home warranty therefore offers the added protection most homeowners seek for peace of mind.
Benefits of Having a Home Warranty
Peace of mind is important when it comes to protecting your home, family and possessions. Because homeowners insurance policies have limitations, some elements of your home and possessions are left potentially vulnerable. Owning a home requires hard work and dedication. A home warranty helps protect what you earned. No amount of money or savings equates to the value peace of mind provides pursuant to your home and family. Knowing you are protected from unexpected financial hardship, while simultaneously having fast access to qualified repair technicians is a primary benefit of having a home warranty.
Purchasing a home is a major event for most U.S. residents. Financial decisions and considerations are required during the entire mortgage application process. Considerations included future job security and household budget. Budget considerations include the possibility of unexpected expenses due to the sudden need for repairs/replacements in your home. Some people are able to save up emergency repair funds. Many homeowners are not, however, despite gainful employment. A home warranty mitigates major budget complications if not eliminates them entirely.
Home system repair/replacement bills are typically expensive. The cost of the monthly/annual premium associated with your home warranty is generally much less than the costs of replacing an HVAC system or major appliance. Repair technicians do charge a per-visit service fee. These out-of-pocket costs for replacements/repairs covered under your home warranty are still significantly less than they would be without warranty protection.
Average Costs for a Home Warranty Plan
Prices for home warranties vary with each provider and multiple other factors. For example, the type and square footage of your home both impact your home warranty premium price. How comprehensive your warranty coverage is also affects its pricing. Most home warranty providers sell pre-designed coverage packages and adapt them as applicable for each customer/situation. Essentially, the more items and systems you add to your warranty coverage the more you will pay for its premium.
Annual and monthly premium plans are available. AFC Home Club charges between $43 and 60/mo for its warranty premiums and $75-$125 service fees per visit. First Home American Warranty charges as low as $28/mo for its premiums and a $75 flat-rate service fee per-visit. Even though specific pricing varies per company and coverage needs, homeowners pay an average range of $300-$600/yr for annual home warranty premiums in 2021.
How to Find the Best Home Warranty Provider
A basic Google search for “best home warranty near me,” along with your zip code generates thousands of possible results. Yelp and HomeAdvisor also generate warranty providers specific to your zip code. Online resources are plentiful and convenient. Word of mouth recommendations from your mortgage lender, neighbors and friends is also a viable way to locate quality home warranty providers suitable for your budget and needs.
Top Nationwide Home Warranty Providers
Multiple top-quality home warranty providers are available today. Coverage breakouts and prices vary greatly between providers. Direct private quotes are protocol for most home warranty companies because each homeowners’ needs are different. For example, Amazon Home Warranty offers proprietary System and Appliance plans, each with pricing available by private quote only. They also offer a Combo plan, which includes both system and appliance coverage.
American Home Shield plans range between $40-$60/mo on average. The ShieldSilver plan covers most systems but not appliances. The ShieldGold plan covers systems and appliances, while the ShieldPlatinum plan adds in a proprietary Coverage Boost feature and roof leak coverage. Additional top nationwide home warranty providers and average prices include:
- Choice Home Warranty ($36-$44/mo; $60-$85 service fees)
- Select Home Warranty ($35-$38/mo; $60-$75 services fees)
- Landmark ($56-$62/mo; $70-$100 service fees)
- Old Republic Home Protection (approximately $64/mo; $75 service fee)