Three leading home warranty companies that will save you thousands in the long run
What is a Home Warranty?
Understanding what a home warranty is - and is not - is the first crucial step in deciding if it’s worth your money. A home warranty is not home insurance. It will not cover damages or expenses resulting from break-ins, fires or extreme weather. Most banks and mortgage companies require their customers to have home insurance.
Home warranties are a type of contract that guarantees coverage of some costs relating to repairs and replacements of major home systems and appliances. So, while home insurance will protect your home against a burglar or a flash flood, a home warranty will save you from paying expensive repair costs out of pocket on your heating system or oven, for example.
What are the benefits?
There are two major benefits that making home warranties worth it.
Firstly, when something goes wrong with one of your major home systems or appliances, you’ll only have to pay a small service fee. The cost of the actual repair or replacement will be covered by the home warranty company, as set down by the terms of your policy contract.
Secondly, home warranty companies only work with specific networks of qualified and vettered technicians and repair professionals. This means that you won’t waste time or money on looking for a trustworthy handyman or trying to do repairs yourself.
What’s the cost?
Costs on home warranties vary from company to company and depending on the type of plan your purchase. Some companies offer basic and more comprehensive plans that vary both in monthly cost and in the service fee.
In general, home warranties run from $300–$840 per year, or between $25-$70 a month.
Which companies can I trust?
This is the million dollar question. Unfortunately, there are a large number of unreliable home warranty companies that take your money but don’t actually come to your aid when something goes wrong.
The following companies have the highest customer satisfaction ratings and have been in the business the longest:
Best for: Lowest service fee
- Fast online claim filing
- Same day dispatch system
- No home inspection required
Best current offer: First month FREE
Best for: Plans for older appliances
- 24/7 support
- National network of over 15,000 licensed pros
- 45 years of experience
Best current offer: 30% OFF
Best for: Most competitive pricin
- Minimal service exclusions
- Plans cover older appliances
- Unlimited service calls annually
Best current offer: $100 off any plan
With these three companies, having a home warranty isn’t only worth it - it’s essential.