7 Best Home Warranty Companies in Phoenix, AZ

How Does a Home Warranty Work?

A home warranty is a protection plan that helps cut costs for Phoenix homeowners needing appliance and system repairs. These plans provide coverage to repair or replace appliances and systems that break due to normal wear and tear.

Homeowners submit a claim and pay a service fee when something breaks. The home warranty provider then finds a contractor to make the fix or replacement. The only time you may pay out-of-pocket is if the cost of the repair or replacement goes over the item's coverage limit. A home warranty plan gives homeowners a sense of security and can help avoid costly emergency repairs. They can be especially helpful for buyers of older homes or homes with appliances near the end of their life span. However, newer homes with modern appliances and fixtures may not require a home warranty.

What Does a Home Warranty Cover?

Home warranties help protect both your home systems and appliances. Common appliances covered under a home warranty include washers, dishwashers, garbage disposals, microwaves, dryers, refrigerators, and more. Covered systems include plumbing, air conditioning, heating, and electrical. Many home warranties offer additional add-on coverage options for central vacuums, septic systems, locksmiths, and even roof leaks. Phoenix homeowners should know that most home warranty plans begin with a 30-day waiting period before repairs are covered. Additionally, most policies only cover the cost of repairs and replacements resulting from normal wear and tear. Home warranties don't include pre-existing conditions, cosmetic issues, natural disasters, or improperly using a system or appliance. You must keep up with preventative maintenance to help make sure your next repair or replacement is covered.

Key Home Warranty Terms to Know

Home warranties use several terms that you'll want to know before signing a contract, such as:

• Trade call fee: An additional fee that's sometimes required to appliance-related claims.
• Deductible: How much you pay for a covered repair before your warranty covers the rest. Deductibles can be per-claim or yearly.
• Contract rate: The pre-negotiated rate a home warranty company has with its contractors. This rate is usually less than typical retail costs.
• Coverage limits: Dollar limits that cap how much the warranty will pay for certain repairs or replacements. Check limits on roof leaks, air conditioning units, appliances, and similar repairs.
• Claim approval: The process by which your provider determines whether a requested repair or replacement is covered under your warranty.
• Service fee: The amount you pay our of pocket per claim for access to a contractor and repair coverage.
• Endorsements: Additional coverage for systems like pools, well pumps, and septic, which usually comes with a fee for each add-on.

If you remember these important factors, it’ll help you understand costs and select a home warranty tailored to protecting your most essential home systems. Make sure to talk to providers about coverage specifics during the quote process, so you can avoid unexpected fees.

Key Factors in Choosing a Home Warranty Company

There are several key considerations when selecting a home warranty provider:

Coverage Options

Home warranty coverage varies, although most plans provide coverage for electrical, AC, heating, plumbing, and appliances. More comprehensive options may also include extra things such as spas, pools, well pumps, and roof leaks. Look for a company that offers comprehensive coverage choices, including upgraded plans. You want the flexibility to customize coverage to fit your home's specific needs.

Service Fees

Expect to pay a per-service fee of $60-100 for each home warranty claim. With these per-request costs adding up over time as you file claims, you may want to choose a company with lower service fees to maximize savings. Some providers also remove deductibles if a customer goes a period of time without filing any claims.

Reputation

A home warranty company's reputation provides insights into factors such as contractor expertise, claim approval rates, repair speed, and customer satisfaction. Look at review sites like TrustPilot, the Better Business Bureau (BBB), or Google Reviews to learn more about providers. Positive ratings and feedback suggest a company known for delivering quality service.

Contractor Network

Home warranty companies keep networks of contractors to handle covered repairs. Larger networks increase the likelihood of getting qualified technicians to promptly service your home. Contact potential providers to find out how many contractors they have in Phoenix to get a sense of how quickly your repairs could be handled in an emergency.

Added Benefits

Some home warranty providers include perks such as energy efficiency upgrades, reduced maintenance fees, and smart home device coverage. These extras can provide extra value beyond just repair coverage. Added bonuses allow you to enhance your home and get the most from your home warranty.

Is a Home Warranty Worth it in Phoenix?

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Benefits of a Home Warranty

Phoenix’s hot summers can put a strain on a home’s HVAC system. Whether it’s summer or winter, a home warranty can cover your home’s appliances and systems in the event they need to be repaired or replaced. For example, if your air conditioner fails in the middle of July, a home warranty can cover the repairs, saving you from spending a lot of money out of pocket.

Additionally, having a home warranty can save you some time by eliminating the need to research contractors — most companies will send a trusted professional right to your door to carry out the repair or replacement. A home warranty can also yield value in other ways. For instance, some policies can be transferred to another owner when you sell your home.

Downsides of a Home Warranty

One of the major drawbacks of a home warranty is not everything you care about may be covered. It’s important to compare the different plans and sign up for one that covers all the appliances, systems, and add-ons you need.

Another consideration is that home warranties usually only cover damage from normal wear and tear. They commonly won’t cover systems or appliances that need repairs or replacements due to natural disasters, improper maintenance, animal infestations, etc.