This informative article explains the essentials of home warranty companies, including coverage types, limitations, exclusions, usage steps, and top providers. It helps homeowners make informed decisions regarding protection plans for their appliances and systems.

A detailed overview of home warranty companies and what they offer

Home warranty plans help homeowners manage the expenses of fixing or replacing key home appliances and systems caused by normal use. Choosing the right plan can be confusing, so understanding the essentials is crucial before making a decision.

How do home warranties differ from homeowners insurance?

Homeowners insurance generally covers structural damage from severe weather events or theft, with premiums and deductibles typically between $500 and $1,000.

Home warranties mainly cover repairs and replacements of appliances and systems, often with a service charge of $50 to $100 per visit.

Limitations to keep in mind

Many providers include restrictions such as limits on the number of covered units.

Coverage caps may apply; expenses beyond these limits are out of pocket.

Some items might be excluded unless explicitly listed in the plan. Always verify your coverage to ensure your appliances are included.

What is not covered?

Intentional damage or misuse usually voids coverage.

Non-mechanical parts like knobs or handles may not be included.

Pre-existing issues prior to signing up are generally not covered.

Steps to use your home warranty

Report any system or appliance failure to your provider first. Attempting repairs on your own without approval may not be reimbursed.

The provider will send a technician for inspection; you pay a service fee.

Once diagnosed and approved, repairs or replacements will be scheduled.

The company covers costs up to the limits in your contract.

Leading home warranty providers

American Home Shield – Provides nationwide coverage, with premiums ranging from $250 to $500 and a service fee of $75 to $125.

First American Home Warranty – Operating since 1984, coverage begins 30 days after enrollment, with premiums around $280 to $470 and deductibles of $65 to $75.

The Home Service Club – Founded in 2008, with premiums about $400.

Choice Home Warranty – Offers coverage with a $60 deductible and premiums between $370 and $450.

Check official websites and read customer reviews to find the best fit for your needs.