6 Best Home Warranty Companies in Chicago, IL

How Does a Home Warranty Work?

A home warranty is a protection policy that helps lower expenses for Chicago homeowners needing appliance and system repairs. These plans provide financial coverage to fix 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 company then arranges a contractor to make the fix or replacement. The only time you may pay out-of-pocket is if the repair or replacement costs go over the item's coverage limit. A home warranty gives peace of mind to homeowners, as it helps prevent expensive emergency repairs. Home warranties are especially useful for owners of older homes or homes with aging systems. New homes with up-to-date appliances may not require a home warranty.

What Does a Home Warranty Cover?

Home warranties cover your home systems and appliances. Common appliances covered include dishwashers, microwaves, garbage disposals, refrigerators, dryers, washers, and more. Included systems are normally heating, electrical, plumbing, and air conditioning. Many home warranty providers offer add-on coverage for septic systems, locksmiths, central vacuums, and roof leaks. It's important for Chicago homeowners to know that most home warranty policies have a 30-day waiting period before they can be used to cover repairs. Additionally, most policies only cover repairs and replacements that result from normal wear and tear. Home warranties don't cover things like cosmetic issues, natural disasters, pre-existing conditions, or misuse of a system or appliance. You need to keep up with preventative maintenance to help ensure that your next repair or replacement is covered by your policy.

Key Home Warranty Terms to Know

Here are some key home warranty terms to know before signing a contract:

• Trade call fee: An additional fee that's sometimes required to appliance-related claims.
• Contract rate: A pre-negotiated rate that your home warranty provider has worked out with contractors. This rate is typically less than what you would pay retail.
• Service fee: The out-of-pocket cost per claim that you pay for contractor access and repair coverage.
• Claim approval: The process by which your provider determines whether a requested repair or replacement is covered under your warranty.
• Deductible: The amount you pay toward a covered repair before the warranty covers the rest. Some plans have per-claim or yearly deductibles.
• Coverage limits: The maximum dollar amount that your warranty provider will pay for certain repairs or replacements. Check your contract's limits on repairs for things like air conditioning units, roof leaks, and appliances.
• Endorsements: Optional add-on coverage for systems such as septic, pools, well pumps and more. Endorsements typically come with an additional fee.

With these important considerations in mind, you'll be able to better understand pricing and choose a home warranty customized to protecting your most essential home systems. When getting a quote, review coverage details with potential companies, so you don't encounter any unexpected fees.

Key Factors in Choosing a Home Warranty Company

When choosing a home warranty provider, there are several important factors to consider:

Coverage Options

Home warranty coverage varies, although most plans provide coverage for AC, electrical, heating, plumbing, and appliances. More inclusive plans may also cover extra things such as spas, pools, well pumps, and roof leaks. Focus on companies with broad coverage options including upgraded plans. Flexibility like this will help you customize protection for your home's needs.

Service Fees

You'll pay a repair fee, normally ranging from $60–100 for each claim filed with your home warranty provider. This fee is charged per request and can quickly add up, so you may seek out providers advertising more affordable fees to optimize savings on each repair claim. Certain providers may eliminate deductibles if homeowners don't submit any claims within a set period of time.

Reputation

A home warranty company's reputation provides insight into things such as approval rates, contractor quality, repair timeliness, and customer service. Check review platforms such as Google Reviews, TrustPilot, or the Better Business Bureau (BBB) to research providers. Positive ratings and feedback indicate a company known for exceptional service.

Contractor Network

Home warranty companies maintain networks of technicians to handle covered repairs. Wider networks increase the probability of getting qualified technicians to service your home ASAP. Reach out to potential providers and ask how many contractors they have in Chicago to get a sense of how soon your repairs could happen in an emergency.

Added Benefits

Some home warranty providers include bonuses such as smart home device protection, maintenance discounts, and energy efficiency upgrades. These perks add value beyond just repair coverage. Extra bonuses maximize the usefulness of the home warranty.

Is a Home Warranty Worth it in Chicago?

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Benefits of a Home Warranty

Chicago’s cold winters can put a strain on a home’s HVAC system. Whether it’s summer or winter, a home warranty is designed to cover your home’s appliances and systems in the event they need to be repaired or replaced. For example, if your air conditioner breaks down in the middle of July, a home warranty can cover the repairs, preventing you from spending unexpected money out of pocket.

Not only can a home warranty save you money on repairs and replacements, it saves you time as well. Instead of having to vet technicians by yourself, home warranty companies do the work for you and send a contractor from their network right to your door when you need them. Plus, having a home warranty can help make your house more appealing to potential homebuyers should you ever decide to sell in the future. Many home warranty providers will allow you to transfer your policy to a new owner and give them the protection you’ve been benefiting from.

Downsides of a Home Warranty

As for the drawbacks of home warranties, system and appliance coverage varies by provider, so it’s important to review what each policy covers and excludes in the contract.

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