Home warranty companies have a pretty straight-forward proposition for homeowners: you buy an annual policy that comes out to somewhere between $25 and $60 a month and when something big goes wrong with one of your home systems or a major appliance, we’ll foot the bill.
And that sounds pretty good. Anyone who had to pay for a costly repair or an appliance replacement out of pocket knows how expensive it can be, and especially how difficult it can be to work with random technicians and repairmen.
However, buying a home warranty can be tricky. Unfortunately, many homeowners purchase a policy from a company that isn’t reputable or has a history of denying most of their customers’ claims.
The two biggest mistakes homeowners make when purchasing a home warranty is not checking customer reviews and not reading the fine print. If you don’t do both, you’ll find yourself with a warranty that you’ve paid for but won’t do much good when something goes wrong.
For example, many consumers don’t notice the fact that many home warranties won’t cover repairs on appliances over a certain age or if rust is involved.
Or, some home warranties won’t cover costs associated with problems that were caused by improper maintenance - something that can be difficult for the homeowner to prove isn’t true.
Based on our extensive research we’ve narrowed down the two leading home warranty companies with the best track records and the clearest terms that won’t leave you confused about what is or isn’t covered.
Liberty Home Guard is a NYC-based home warranty company. It offers inexpensive policies that are systems-focused, appliance-focused, or all inclusive. Their plans cost as little as a $30 a month with a service fee for repairs running as low as $60. The company also offers optional add-on coverage for pools and spas, well pumps, and septic systems.
They also boast a network of independent, licensed contractors throughout the 30 US states that they cover.
Liberty’s extensive coverage network is nationwide except for the following states: AR, CA, HI, IL, IN, IA, KY, MA, MN, NH, NM, OR, VT, WA, WI, WY.
Choice is a close second in terms of customer satisfaction, coverage options and pricing, as well as operating in more states.
Choice offers a full array of appliance and home system coverage at competitive prices. Their service fee is also $60. Submitting a claim can be done at any time, including online. One major benefit of Choice is that, unlike some of their competitors, the company does not impose an annual cap on pay-outs.
This means that there’s no limit to the number of claims you can file within the same year.
It is important to note that they do not cover repairs caused by failing to provide proper cleaning or maintenance to specific major appliances.
Refrigerators, air conditioning systems, washers, and dryers are excluded from coverage by the basic plan but can be added in the premium plan.
Protect yourself from making the most common mistakes by looking up customer reviews, reading the fine print and sticking with these trusted companies.