A home warranty division is a company that provides service contracts for homeowners who want to protect their major home systems and appliances from breakdowns and malfunctions. A home warranty division can help you save money and hassle when something goes wrong with your air conditioning, refrigerator, dishwasher, or other covered items. In this article, we will explain how a home warranty division works, what it covers, what it costs, and how to choose the best one for your needs.
How Does a Home Warranty Division Work?
A home warranty division works by offering different plans that cover specific items in your home. You can choose a plan that suits your budget and needs, and pay a monthly or annual fee to the home warranty division. In return, you get access to a network of qualified contractors who can handle any repairs or replacements that are covered by your plan.
When you have a problem with a covered item, you simply contact the home warranty division and file a service request. The home warranty division will then assign a contractor to your case and schedule an appointment for them to visit your home and diagnose the issue. You will pay a service fee to the contractor, which ranges from $60 to $150 depending on the plan and the company. The contractor will then fix the problem or replace the item if necessary, and the home warranty division will cover the cost of the parts and labor up to a certain limit.
A home warranty division can save you from paying thousands of dollars out of pocket for unexpected repairs or replacements. It can also save you time and stress from finding and hiring reliable contractors on your own. A home warranty division can also provide you with an allowance to help pay for replacement items if they are not available or too expensive.
Read more about Home Warranty vs Home Insurance: What You Need to Know
What Does a Home Warranty Division Cover?
A home warranty division covers different items depending on the plan you choose. Some plans cover only appliances, while others cover only systems, and some cover both. Some common items that are covered by most plans include:
- Electrical system
- Central air conditioning
- Central heating
- Kitchen refrigerator
- Built-in microwave
- Garbage disposal
- Clothes washer and dryer
- Built-in dishwasher
- Cooking range, oven, and cooktop
- Ceiling fans
- Garage door opener
Some plans also cover additional items that are usually optional or not covered by other companies, such as:
- Swimming pool
- Central vacuum
- Heat pump
- Stand-alone freezer
You should always read the contract carefully before signing up for a plan, as there may be exclusions, limitations, and conditions that apply to your coverage. For example, some items may be covered only if they are less than a certain age, or if they are maintained according to the manufacturer’s instructions. Some items may have a cap on how much the home warranty division will pay for repairs or replacements. Some items may not be covered at all if they are damaged by natural disasters, pests, misuse, or neglect.
What Does a Home Warranty Division Cost?
The cost of a home warranty division varies depending on the company, the plan, and the location. Generally, you can expect to pay between $300 and $600 per year for a basic plan that covers appliances or systems, and between $600 and $900 per year for a comprehensive plan that covers both. You can also pay extra for add-ons or upgrades that cover more items or provide higher coverage limits.
In addition to the annual or monthly fee, you will also pay a service fee every time you file a service request. The service fee ranges from $60 to $150 depending on the company and the plan. The service fee is usually lower if you choose a higher annual or monthly fee, and vice versa.
To determine if a home warranty division is worth it for you, you should compare the cost of the plan with the potential savings from repairs or replacements. You should also consider the age and condition of your home and its systems and appliances, as well as how often they break down or need maintenance. A home warranty division may be more beneficial for older homes or homes with older or more expensive systems and appliances.
How to Choose the Best Home Warranty Division?
There are many factors to consider when choosing the best home warranty division for your needs. Here are some tips to help you make an informed decision:
- Compare different plans and companies: You should shop around and compare different plans and companies based on their coverage, cost, reputation, customer service, and reviews. You can use online tools like U.S. News or This Old House to find and compare top-rated home warranty divisions in your area.
- Read the contract carefully: You should always read the contract carefully before signing up for a plan, as it contains important information about your coverage, exclusions, limitations, conditions, fees, and responsibilities. You should also ask for a sample contract before buying a plan, as some companies may not provide it online or may change it without notice.
- Check the reviews and ratings: You should check the reviews and ratings of the home warranty division and its contractors from other customers, as they can give you an idea of their quality, reliability, and professionalism. You can use online platforms like Better Business Bureau or [Consumer Affairs] to find and read customer feedback and complaints.
- Beware of scams: You should beware of scams that may try to trick you into buying a fake or fraudulent home warranty plan. Some signs of a scam include unsolicited letters, phone calls, or emails that urge you to act quickly or offer unrealistic deals. You should also avoid paying upfront fees or giving out personal or financial information to unknown or unverified sources.
A home warranty division is a company that provides service contracts for homeowners who want to protect their major home systems and appliances from breakdowns and malfunctions. A home warranty division can help you save money and hassle when something goes wrong with your air conditioning, refrigerator, dishwasher, or other covered items. However, a home warranty division is not a one-size-fits-all solution, and you should carefully weigh the pros and cons of each plan and company before buying one. You should also do your research and compare different options based on their coverage, cost, reputation, customer service, and reviews. By following these tips, you can find the best home warranty division for your needs and enjoy peace of mind in your home.