4 Tips to Choose the Best Home Warranty Plan


Home warranty companies vary in terms of coverage, cost and service. Make a list of the systems and appliances you want covered, then shop around to find providers who offer the best value. A hot water warranty is different from a kitchen appliance warranty so be sure to educate yourself on the warranty plans. 

Request quotes from providers and ask for sample contracts. This allows you to compare add-on coverage, limitations and workmanship guarantees. 

  1. Read the Fine Print 

Before selecting a home warranty plan, it’s important to read the fine print. The contract should outline the specific systems and appliances covered, as well as any excluded items. It should also note any coverage caps and maximum payout amounts. 

It’s also important to read reviews from previous homeowners. These can give you an idea of what to expect from the company in terms of customer service and quality of work. 

Many home warranty companies offer multiple plans, so it’s important to determine which ones are right for you. Generally, the best choice is one that covers essential systems and appliances, such as the furnace, water heater and roof. Some providers also offer add-ons, such as pool and spa coverage or electronic discounts. 

If you’re buying a new home, be sure to ask the seller whether they have a home warranty. If they do, find out how long their policy lasts and whether it can be transferred over to you. 

  1. Make a List 

The type of coverage you choose and the amount of items covered will play a significant role in home warranty pricing. For instance, a systems or appliances-only plan will generally cost less than plans that cover both. The service fee and payout limits also play a part in the overall price of the plan. 

It’s helpful to write a list of the systems and appliances that you would like covered. This will help you narrow down the selections and identify potential companies to consider. 

Once you have narrowed down your options, it’s a good idea to compare the prices of each company and how their policies work. Check for any red flags, such as companies that don’t have a clear, easy-to-read contract or are known to reject claims without a valid reason. 

Look at the number of years that the plan lasts and whether the company offers add-on options, such as re-keying and annual HVAC maintenance. It’s also a good idea to ask friends and neighbors for recommendations and find out what home warranty company they use.

  1. Shop Around 

Home warranties cover the cost of repair or replacement of appliances and systems that break down due to normal wear and tear. But not all companies and plans are created equal. It’s important to shop around to find a plan that fits your needs and budget. 

The best home warranty providers offer multiple options for coverage, including appliance-only, system-only and combination plans, as well as add-ons such as re-keying and annual HVAC tuneups. The average monthly premium will vary depending on the type of coverage you choose and the provider’s deductibles and service call fees. 

Some companies require a higher service call fee and limit coverage for some items, while others may exclude things like roof repairs and septic tank maintenance. It’s also important to check the company’s reputation before buying a home warranty. Many companies post glowing customer testimonials on their websites, but you can often find a different story when you dig deeper. 

  1. Read Reviews 

Home warranty plans can be a great option for anyone who wants to feel confident that their appliances and systems will be repaired if they break down. They can also be an excellent choice for first-time homeowners who may not be familiar with repairing or replacing these types of items, or for people who live in rental properties and want to protect themselves against unexpected costs. 

When shopping for a plan, it’s important to compare quotes and read the fine print carefully. You can also ask the provider to provide sample contracts so you can review coverage terms and other important details. 

You should also consider the monthly premium cost and service call fee of each plan you’re considering. You’ll want to find a company that offers low monthly rates and doesn’t charge extra fees for each repair or replacement. Finally, it’s a good idea to read reviews from other customers who have purchased a home warranty plan.

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