Home warranties provide the peace of mind that every homeowner needs. These types of warranties are essentially insurance policies that pay for the repair of appliances should they break down. The best home warranty companies have contracts that are easy to read and provide customers with clear, straightforward policies. Before signing on the bottom line, homeowners need to also review their chosen company's caps, which is the maximum amount that the company will pay out for single repairs or a year's worth of repairs and replacements. Fortunately, plans can be customized based on the unique needs of consumers looking for a comprehensive home warranty. The three best home warranty companies include American Home Shield, Total Protect, and First American Home Warranty. Read on to find out what you need to know about home warranties.
These are two very different policies. A home warranty covers the repair and replacement on appliances and systems at any time, while homeowners insurance covers the replacement of a home and possessions in the case of flood, storm, fire, and other calamity. The best home warranties cover what homeowners insurance does not.
Many customers buy home warranties when they close on the purchase of a home, which protects them from potential unexpected expenses soon after moving in.
A home warranty helps home buyers to feel more secure with their purchase before even moving in. The extra reassurance can help seal the deal with homebuyers.
Home sellers can provide home warranties for the buyers of their homes to help sweeten the deal, especially where older homes are concerned. This gives security to homebuyers, since they won't have to anticipate potential unexpected expenses after moving in.
Most home warranties cover the same systems and appliances. These include washers, dryers, refrigerators, ovens, ranges, garbage disposals, and other major kitchen appliances. Systems that are usually covered include electrical, heating and cooling, and plumbing.
The cost of a home warranty can vary depending on a variety of factors, including company, coverage, customized added options, and length of term. In general, basic coverage starts at $300 and can go up to $600 for more comprehensive plans. It's always best to check directly with the company of interest and know the full cost before agreeing to coverage.
Depending on the policy, a home warranty can have a deductible, just like other forms of insurance.
If a covered system or appliance breaks, customers simply need to call their warranty providers who will connect customers with qualified contractors in their regions.