How to Choose the Best Home Warranty Company for Your Needs

EllaAugust 27, 2023Last Updated: June 25, 2024

49 3 minutes read

A home warranty is a service contract that covers the repair or replacement of your home’s appliances and systems when they break down due to normal wear and tear. A home warranty can save you money and hassle when something goes wrong with your home, but not all home warranty companies are created equal. Here are some tips on how to choose the best home warranty company for your needs.

Compare Plans and Coverage

The first thing you need to do is compare the plans and coverage offered by different home warranty companies. You want to find a plan that suits your budget and covers the items that you care most about. Some common items that are covered by home warranty plans include:

Heating and cooling systems
Plumbing and electrical systems
Kitchen appliances
Laundry appliances
Garage door openers
Ceiling fans
Water heaters

Some home warranty companies also offer optional coverage for items that are not typically included in standard plans, such as:

Pools and spas
Septic systems
Well pumps
Roof leaks
Sump pumps
Refrigerator ice makers

You should also check the limits and exclusions of each plan, as some home warranty companies may have caps on the amount they will pay for each claim or exclude certain items or conditions from coverage. For example, some home warranty companies may not cover items that are damaged by improper installation, maintenance, or misuse, or items that are still under the manufacturer’s warranty.

Check Reviews and Ratings

Another important factor to consider when choosing a home warranty company is the reputation and customer service of the company. You want to choose a company that has positive reviews and ratings from customers and independent agencies, such as the Better Business Bureau (BBB), Consumer Affairs, or Trustpilot. You should also look for a company that has a high customer satisfaction rate and a low complaint ratio.

You can check the reviews and ratings of different home warranty companies online, or ask for referrals from friends, family, or neighbors who have used a home warranty service before. You should also contact the home warranty companies directly and ask them questions about their plans, coverage, service fees, response time, network of contractors, and cancellation policy. You want to choose a company that is responsive, transparent, and professional.

Choose the Best Home Warranty Company for Your Needs

Once you have compared the plans and coverage, and checked the reviews and ratings of different home warranty companies, you can choose the best one for your needs. You should also consider the following factors before making your final decision:

The cost of the plan: The cost of a home warranty plan depends on the level of coverage, the service fee, and the location of your home. You should compare the annual or monthly premiums of different plans and choose one that fits your budget. You should also factor in the service fee, which is the amount you have to pay each time you file a claim. The service fee can range from $75 to $125 depending on the company and plan. You should choose a plan that has a reasonable service fee that you can afford.
The duration of the contract: The duration of a home warranty contract can vary from one month to one year depending on the company and plan. You should choose a contract that suits your needs and preferences. Some home warranty companies offer discounts or incentives for longer contracts, while others allow you to cancel at any time without penalty. You should also check if the contract is renewable or not, and what are the terms and conditions for renewal.
The availability of service: The availability of service refers to how quickly and easily you can access the home warranty service when you need it. You should choose a company that has a 24/7 customer service line, a user-friendly website or app, and a large network of licensed and qualified contractors in your area. You should also check how long it takes for the company to dispatch a contractor to your home after you file a claim, and how long it takes for them to complete the repair or replacement. You want to choose a company that has a fast and reliable service.

Conclusion

A home warranty can be a valuable investment for homeowners who want to protect their home’s appliances and systems from unexpected breakdowns. However, not all home warranty companies are equal, so you need to do some research and comparison before choosing one. By following these tips, you can find the best home warranty company for your needs.