Home Warranty

Owning a home comes with a lot of expensive repair bills for appliances over the years. Learn how Home Warranty Policies can save you thousands in costly repair bills, and which type of policy is best for you.

Top Home Warranty Companies

American Home Shield offers customers the most customizable plans!

Choice Home Warranty offers the best response times to customers!

Cinch is a great up-and-coming Home Warranty Brand in 2021!

Learn more about when a Home Warranty can help you.

Compare the Top Home Warranty Companies in 2021

What is actually covered in a Home Warranty Policy?

Learn how a Home Warranty can Save You Money!
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FAQ

What is a Homeowner’s Warranty Policy?

A homeowner’s warranty is a service contract to cover repair and replacement of covered units that have been well maintained. This can include things like cooling systems, washers and dryers, electrical systems, and more depending on your policy. Check out this year’s best home warranty companies.

What is a Homeowner’s Warranty Policy Good For?

Homeowners warranties are good for replacing and repairing well-maintained home appliances and systems. Commonly covered units are washers and dryers, HVAC systems, and hot water heaters. You can typically get other items covered, as well, it just depends on the company that you’re working with. See what is included by a home warranty here.

Does a Homeowner’s Warranty Cover an AC Unit?

Typically, yes as long as it’s well maintained. When signing up for a homeowners warranty you would be able to get all of the specific details of what is and isn’t covered, and you’ll also receive this in writing with the paperwork you sign when you first order the warranty. See what is included by a home warranty here.

What is the Difference Between Homeowner’s Insurance and Home Warranty?

Homeowner’s insurance is a policy that covers your home against loss in the case of disaster, while a home warranty is a service contract that covers some of your home systems and appliances repair and replacement costs.

Is Homeowner’s Insurance the Same as Home Warranty?

Homeowner’s insurance and home warranties are not the same. Homeowner’s insurance protects your property from specific perils, while a home warranty is a service contract to repair or replace units when they break down.

Do Home Warranties Transfer to new Homeowners?

Yes, home warranties can be transferred to new homeowners so long as the proper paperwork is filled out. The new homeowner would be responsible for the warranty payments and deciding if they want to make them monthly or yearly. Check out this year’s best home warranty companies.

How Much Does a Home Warranty Cost?

The cost of your home warranty can depend on the side of your home. Basic warranties can cost, on average, between $350-$600 a year, with extended coverage it can cost an extra $100 to $500 a year. Most basic warranties will cover things like plumbing, HVAC systems, and major appliances like refrigerators. Learn more about how a home warranty can actually save you money in the long term.

Is Homeowner’s Insurance the Same as Home Warranty?

No, homeowners insurance is a policy that covers your home against perils while a home warranty is a service contact that will cover the repair or replacement costs if a covered unit breaks down.

Is a Home Warranty Worth It?

In many cases, yes. Especially if you’re good at maintaining everything in your home. Home warranties will cover the cost to replace or repair broken units. Some warranties cover the whole cost, and some warranties only cover part of the cost and everything else comes out of pocket. Home Warranties can actually save you money in the long run.

What Does a Home Warranty Cover?

Homeowners Warranties cover things like washers and dryers, cooling systems, electrical systems, and other major home systems and appliances as long as they are well maintained. You can usually get more advanced warranties that cover other things in your house, but you would have to speak with the home warranty company to see what they offer. See what is included by a home warranty here.

What is a Home Warranty?

A homeowners policy is a service contract to replace and repair covered units when they break down due to normal wear and tear. Typically they’ll cover things like plumbing, electrical systems, HVAC systems, and major home appliances like refrigerators and washers and dryers. Check out this year’s best home warranty companies.

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

A home warranty is a service contract to help cover the cost for covered units when they need repair or replacement, homeowner’s insurance is an insurance policy that covers your home against specific perils as listed in your contract.

Are Homeowner’s Warranties Worth the Money?

Generally, if you’re good at home maintenance, yes. A warranty will cover the cost, either in part or in full, to repair or replace units when they stop working. If they only cover part of the cost, the rest comes out of your pocket but it’s still cheaper than it would be without the warranty. Read more about how a home warranty can save you money

Do Home Warranties Cover Roofs?

Typically a homeowner’s warranty will not cover a roof replacement, but may cover leaks and repairs. This can depend heavily on the company, and it is possible that there is a home warranty company that would be able to cover that. See what is included by a home warranty here.

Does a Home Warranty or Homeowner’s Insurance Cover Water Line Breaks?

Typically, homeowners insurance would cover the damage from the break but not the system that broke, while a home warranty will cover the system but not the damage. See what is included by a home warranty here.

Does a Home Warranty Cover Mold?

Unfortunately not. Home warranties typically cover mechanical issues in things like plumbing, electrical systems, HVAC systems, and major appliances like washing and drying machines and refrigerators.

Does a Homeowner’s Warranty Cover Plumbing?

Home warranties will cover issues with your plumbing system, but not any damage because of plumbing issues to things like floors and drywall. Those kinds of things may be covered by a homeowners insurance policy, depending on what your policy covers. See what is included by a home warranty here.

Do Homeowner’s Warranties Cover Electrical Problems?

Typically major components in the system, yes, but more than likely not things such as faceplates, computers, etc.  Home warranties help cover the cost of mechanical failures of covered units, so if you need something mechanical in your electrical system repairs or replacement they would be able to help with that. See what is included by a home warranty here.

How Does a Home Warranty Work?

A homeowner warrant is a service contract that will cover the cost, or part of the cost, if repair or replacement of a covered unit, as long as it’s well maintained.  Typically they only cover the mechanical components of major systems like plumbing, electrical, and HVAC as well as some major appliances like refrigerators, for example. Check out this year’s best home warranty companies.

How Long Does a Home Warranty Last?

Between 1 and 10 years, this depends on the agreement you make with the home warranty company as well as what the home warranty company offers. On average people will have a home warranty for 6-8 years.

How Much Do Homeowner Structural Warranties Cost? (The user may need homeowners insurance, not a warranty)

Structural warranties are usually only given by the home builder and will come with the new house. If you’re looking into this, you may need to look into a homeowner’s insurance policy to cover your needs.

How to Get Homeowner’s Warranty After a Lapse

Typically all you have to do is contact your home warranty company and do whatever they ask of you, this can include certifying that nothing was broken during the lapse period. Many companies offer reinstatement grace periods, but not all so make sure to ask your company about that.

How to Make a Claim on a Home Warranty

First, verify your coverage, then contact your company to request a service visit so you can file a claim. After that, you just need to pay the service fee and any uncovered expenses, if those exist.

Is Homeowner’s Insurance Different From a Home Warranty?

Yes. Homeowners insurance is a policy that covers damage to your home from specific perils, while home warranties are service contracts that cover repair or replacement costs if appliances or home systems break down.

What Are the Major Appliances Covered in a Home Warranty?

Most basic plans cover major appliances and systems like heating, air conditioning, plumbing systems, electrical appliances, kitchen and laundry appliances or any other key units.

Some standard coverage may also include appliances like: Plumbing stoppages, toilets, sump pump, bathroom whirlpool motor pump, recirculating hot water pump, water heater, heating and duct work, telephone system, central vacuum system, garage door opener, ceiling fans, attic and exhaust fans, smoke detectors, doorbells, dishwasher, range, oven, cooktops, built-in microwave, instant hot water dispenser and trash compactor.

What Is Optional Coverage in a Home Warranty?

Additional or optional coverage is the extra coverage you buy from a list of add-on items such as kitchen appliances like refrigerator, oven, washer/dryer, air conditioning, pool and spa equipment. Roof leak repairs are also available for home warranty purchase at an additional fee at the time of signing a contract.

How Much Does a Home Warranty Cost?

Typical home warranty expenses are as follows:

An annual premium, which would be around $300 to $500 for basic appliance coverage and a service call fee per incident, which comes to around $40 to $70. This fee varies from company to company.

When Does Home Warranty Coverage Begin?

For sellers: Usually the coverage varies from company to company. Coverage begins when the enrollment form is received and continues through the listing agreement period.

For buyers: Coverage begins at closing (when title is transferred and payment is received).

For Existing Homeowners: Generally, coverage is effective 30 days after receipt of funds. Check with the contract guidelines to confirm on the duration.

What Are Home Warranty Deductibles or Service Call Fees?

A standard service fee/deductible is a nominal fee charged each time you raise an issue. Some repairs may require more than one service partner or several unrelated visits to the house by the same service partner, and a service call fee is charged for each visit. If a contractor has to order parts and come back to your house at a later time to complete the repairs, this visit would not require an additional deductible. Fee varies from company to company, but it is generally between $40 to $100 per incident. Some companies have zero deductible home warranties.

What Can Cause a Home Warranty Denial of Claims?

Denial of claims may be caused due to code violations, unusual wear and tear, improper installation, pre-existing conditions and, in some cases, issues due to improper maintenance. Some companies however, do cover damages resulting from lack of maintenance. For further details, refer to your warranty contract.

What Is a Home Inspection?

A home inspection is a procedure in which a home inspector investigates the comprehensive information about property conditions. They analyze the description of problem in a written report and recommend further evaluation if required. Normally every inspection report is guaranteed for 30 days.

What Is Home Buyer’s Protection?

A home buyer’s protection plan is a service contract that covers repairs and replacements of insured appliances and systems like electrical, plumbing and heating systems and built-in appliances that are not covered by regular homeowner’s insurance.

Home warranty coverage varies from company to company. It is very essential that you read the terms and conditions of the policy before choosing one that is suitable for your requirements. Most of the standard policies cover plumbing and heating appliances, but if the cooling units are not covered under the basic plan you can still include it by paying an additional fee, into your policy.

When Can You Purchase a Home Warranty?

You can purchase a home warranty at any time for any house. While many home warranties are purchased by a buyer or a seller of a home during a real estate transaction, a home warranty can be purchased by any homeowner looking to protect their budget.

When Can I Start Using My Home Warranty?

There is a 30 day waiting period before you can request service. If you purchased a home warranty in a recent real estate transaction, or are renewing your home warranty, you may immediately use your home warranty.

How Do I Choose the Right Home Warranty?

When choosing the right home warranty for you, it is important to research and compare the options available for your needs and your budget. Monthly and annual costs can vary widely between home warranty providers, but out of pocket costs are just one of the considerations when selecting a home warranty.

Who Pays for a Home Warranty?

A buyer or a seller can pay for a home warranty and can sometimes depend on what is typical for your specific area. The seller is often motivated to include a home warranty by the desire to sell a home, however, if this is not the case, a buyer may want to purchase a home warranty especially considering the age of the home. A home warranty may be purchased at any time and does not necessarily have to be done during a closing.

Why Would a Seller Offer a Home Warranty?

A seller would offer a home warranty to make their home more desirable to prospective buyers. A home with a warranty is more likely to sell quickly as the home warranty protection gives the buyer more confidence and peace of mind with their purchase. 

Is it Worth Having a Home Warranty?

A home warranty is a good idea for homeowners who cannot comfortably afford to cover the costs of major repairs or appliance replacements out of pocket. These costs could amount to thousands and are often sudden and unpredictable. If you own an older home with older appliances and systems, then a home warranty is a great investment.

The bottom line is that having a home warranty can save you money in the event of an emergency repair to your home systems or appliances. If you are a homeowner who doesn’t want to take out a home warranty, you should be sure to have money socked away for any emergency repair costs.

How Long Does a Home Warranty Last?

Home warranty insurance lasts for a year and is renewed on an annual basis. There are cases when a home warranty can last for longer than a year without needing to be renewed.

If you have recently purchased a home, you may need to ask the seller if the home is currently covered, they may continue to pay for it to help cover repairs. Contact the home warranty company to ask what plans they have and choose one that works for you and your budget.