Home Warranty Choice: A Guide to Choosing the Best Home Warranty Company

Sobi

11 months ago

A home warranty is a service contract that covers the repair or replacement of certain appliances and systems in your home due to normal wear and tear. It can save you money and hassle when something breaks down unexpectedly in your home. However, not all home warranty companies are created equal. Some may have limited coverage, long waiting times, poor customer service, or low-quality contractors.

In this article, we will help you make an informed decision about choosing the best home warranty company for your needs. We will cover the following topics:

What is a home warranty and how does it work?
What are the benefits and drawbacks of having a home warranty?
What are the factors to consider when comparing different home warranty companies and plans?
What are some of the best home warranty companies of 2023 based on their ratings, plans, costs, and customer feedback?
How to choose a home warranty company that suits your needs and budget?

By the end of this article, you will have a clear idea of what a home warranty is, how it works, and what it covers. You will also have a better understanding of the pros and cons of having a home warranty, the criteria to evaluate different home warranty companies and plans, and the steps to choose the best home warranty company for your needs.

What Is a Home Warranty and How Does It Work?

A home warranty is a service contract that covers the repair or replacement of certain appliances and systems in your home due to normal wear and tear. Unlike homeowners insurance, which protects your home from damage caused by natural disasters, theft, or vandalism, a home warranty covers the items that are most likely to break down over time due to normal use.

The way a home warranty works is simple. When you purchase a home warranty, you pay an annual or monthly premium to the provider for a certain period of time, usually one year. During this period, if any of the covered items in your home breaks down due to normal use, you can contact the provider to request a service. The provider will then assign a qualified contractor to diagnose and fix the problem. You will pay a service fee to the contractor at the time of service.

If the contractor determines that the item cannot be repaired or is too expensive to repair, the provider will replace it with a similar or equivalent model. The provider will cover the cost of the replacement up to a certain limit specified in your contract. Some providers may also offer cash payouts instead of replacements in some cases.

What Are the Benefits and Drawbacks of Having a Home Warranty?

A home warranty can offer several benefits for homeowners, such as:

Saving money on unexpected repairs or replacements
Reducing stress and hassle when something goes wrong in your home
Protecting your budget from fluctuating expenses
Extending the lifespan of your appliances and systems
Increasing the value and appeal of your home when selling

However, a home warranty also has some drawbacks that you should be aware of, such as:

Not covering everything in your home
Having exclusions and limitations in your contract
Requiring proof of maintenance and inspection records for some items
Having long waiting times or poor customer service from some providers
Having no control over the choice of contractor or quality of work

Therefore, before you decide to buy a home warranty, you should weigh the pros and cons carefully and consider your own needs and preferences.

What Are the Factors to Consider When Comparing Different Home Warranty Companies and Plans?

When you are looking for a home warranty company, you will find many options in the market. However, not all of them are suitable for your needs. To find the best one for you, you should compare different home warranty companies and plans based on the following factors:

Coverage: This refers to what items are covered by the plan, what are the coverage limits, and what are the exclusions and limitations. You should look for a plan that covers most of the appliances and systems that you want to protect, has high coverage limits, and has few exclusions and limitations.
Cost: This refers to how much you have to pay for the plan, including the annual or monthly premium, the service fee, and any extra fees. You should look for a plan that offers reasonable prices for its coverage level and has no hidden fees.
Service: This refers to how fast and reliable the provider is in responding to your service requests, assigning contractors, paying claims, and resolving issues. You should look for a provider that has a 24/7 customer service, an online portal, a large network of pre-screened contractors, and a good reputation in the industry.
Reviews: This refers to what other customers have to say about their experiences with the provider. You should look for a provider that has positive reviews and ratings from various sources, such as online platforms, social media, blogs, and forums.

By comparing different home warranty companies and plans based on these factors, you can narrow down your choices and find the best one for you.

What Are Some of the Best Home Warranty Companies of 2023 Based on Their Ratings, Plans, Costs, and Customer Feedback?

To help you find the best home warranty company for your needs, we have reviewed some of the top-rated providers in the market based on their ratings, plans, costs, and customer feedback. Here are our picks for the best home warranty companies of 2023:

Choice Home Warranty: Best for Service Guarantee

Choice Home Warranty (CHW) is a popular home warranty company that offers two types of plans: Basic Plan and Total Plan. It covers most major appliances and systems in the home as well as some optional items. It has a network of over 10,000 contractors across the country. It charges an annual premium of $400 to $500 and a service fee of $85.

Some of the benefits of CHW are:

It offers a 90-day service guarantee and a 30-day cancellation policy
It offers discounts and promotions for new customers
It has a 24/7 customer service and an online portal

Some of the drawbacks of CHW are:

It has some exclusions and limitations in its coverage
It requires proof of maintenance for some items
It has mixed customer reviews and ratings

American Home Shield: Best for Comprehensive Coverage

American Home Shield (AHS) is one of the oldest and largest home warranty companies in the industry. It offers four types of plans: Appliances Plan, Systems Plan, Combo Plan, and Build Your Own Plan. It covers most major appliances and systems in the home as well as some optional items. It has a network of over 15,000 contractors across the country. It charges an annual premium of $300 to $600 and a service fee of $75 to $125.

Some of the benefits of AHS are:

It has a wide coverage and a high coverage limit
It allows customers to customize their plans and service fees
It has a long history and a good reputation in the industry
It has a 24/7 customer service and an online portal

Some of the drawbacks of AHS are:

It has some exclusions and limitations in its coverage
It does not offer discounts or promotions
It has mixed customer reviews and ratings

Liberty Home Guard: Best for Customer Service

Liberty Home Guard (LHG) is a relatively new home warranty company that offers three types of plans: Appliance Guard, Systems Guard, and Total Home Guard. It covers most major appliances and systems in the home as well as some optional items. It does not have a network of contractors, but allows customers to choose their own licensed contractors for all services. It charges an annual premium of $500 to $800 and a service fee of $60 to $125.

Some of the benefits of LHG are:

It allows customers to choose their own licensed contractors for all services
It does not have an age limit or a home inspection requirement for the covered items
It has a friendly and helpful customer service team that is available 24/7

Some of the drawbacks of LHG are:

It is not available in all states, which limits its reach and accessibility
It has some exclusions and limitations in its coverage
It has a relatively short track record in the industry

How to Choose a Home Warranty Company That Suits Your Needs and Budget?

Choosing a home warranty company can be a daunting task, given the number of options and factors to consider. However, by following these steps, you can make an informed decision that suits your needs and budget:

Assess your home protection needs. Identify the appliances and systems that you want to cover, their age and condition, and their repair or replacement costs.
Compare different home warranty companies and plans. Look at their coverage, costs, exclusions, limitations, service fees, discounts, customer service, reviews, ratings, and reputation.
Read the fine print of the contract. Make sure you understand what is covered and what is not, what are your responsibilities and rights, how to file a claim, how to cancel or renew your contract, and what are the terms and conditions.
Choose the best home warranty company and plan for you. Pick the one that offers the best value for your money, meets your home protection needs, and provides reliable and quality service.