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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

  • One month free upon signup
  • No home inspection required
  • Covers most appliances and systems
  • Service call fee is a little high
  • Some limitations on coverage
Choice Home Warranty is an easy, straightforward home warranty service that covers all of your basic and complex systems and appliances. The pricing plans are competitive, and with a 24/7 claims department, there’s always someone available to help. With a network of 25000 technicians, response times are fast too, making Choice a great choice for you.
  • Award-winning service
  • Low premiums and deductibles
  • No home inspection required
  • Pricey cancellation fee to terminate contract
  • Have to make claims quickly or won’t be covered
Select Home Warranty is a solid home warranty service with a lot going for it. There’s a huge network of contractors, so service is fast and convenient. Plus, Select Home Warranty covers a wide range of appliances and systems with their easy to understand plan structure. What’s more, you’ll get some of the cheapest premiums and deductibles from Select, making this home warranty service one of the most affordable in the industry.
  • A+ accredited BBB provider
  • Clear-cut choice between 3 plans
  • Huge number of add-ons (23)
  • Website lacks information
  • Bigger houses get charged a lot
  • Doesn’t operate in 11 states
Liberty Home Guard is a relatively new arrival on the home warranty scene, but it’s already shaking up the industry. It offers a clear choice between appliances, systems, and a combo plan, although the biggest benefit here is the huge number of add-ons – 23 in total. Whether you need coverage for pool, pest control, or ice-maker, Liberty Home Guard guarantees you for the parts of your home other companies don’t bother with.

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 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!
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