What is a Home Warranty – Our FAQ

Similar to any type of insurance, in order to get home warranty coverage, you need to sign a contract with a home warranty company. The contract will specify the type of coverage, list the covered items, all fees, deductibles, and premiums.

In the event that one of the covered items breaks, you will need to submit a claim with the company’s representative within a specified time period, usually one day.

There are multiple possible explanations for the fact that there are so many bad reviews for home warranty companies.

First of all, satisfied customers are, in general, less likely to publish a review. Second, many customers do not read the fine print in the terms and conditions and have higher expectations for the company’s services than they paid for. In general, home repairs can be stressful, and not everything goes as planned, which adds to the customers’ disappointment and low satisfaction.

Lastly, some home warranty companies either have low standards or violate their own rules. In this case, known as home warranty scam, the customers have every right to file complaints with consumer reporting sites and regulating authorities.

Your home warranty coverage details are described in your home warranty plan. It should include all the home systems and appliances that you would like to be covered. All the terms and conditions for your coverage will be listed in your contract.

If your plan does not include the items you need, you can always add them, or switch to a different plan.

• Which items are covered
• Which parts are covered and which are not
• The coverage limits, premiums, and deductibles
• How you can cancel or extend a warranty

And many other specific details regarding your home warranty coverage.

• Your coverage has not started yet. In the majority of the companies, coverage starts 30 days after the contract is signed.
• Preexisting condition.
• Poor maintenance.
• This particular part is not covered by your plan.
• And other terms and conditions specified in your contract, usually in the fine print.

To purchase a home warranty, you need to select a home warranty service provider and a plan that fits your needs. Once you’ve made your choice, you can fill in the online form or make a phone call to purchase the plan.

If you buy a new house, the seller may transfer their warranty to your name, or you can get it through your realtor.

If you decide to cancel your new contract, you only have a certain amount of time to do so and still get a refund. More than half of the companies give their clients 30 days for making such a decision.

Only one company offers 60 days to end the agreement, while some of them are much less generous—you might only have 20 days, ten days, or even three days to cancel.

If you want to cancel the automatic policy renewal, it’s important to make a cancellation within the specified time period before the contract’s expiration. About 39% of companies allow you to cancel the automatic renewal within 30 days before the end of the contract, and 4.5% let you cancel within 60 days. But be careful—one company only gives three days, and another company gives just one day.

• Interior/exterior of home.
• Personal possessions in the event of theft/damage.
• General liability surrounding the injury of a person while on the property. (It is offered by home insurance companies and banks and usually costs between $1,000 and $3,500 a year with deductibles ranging from $1,000 up to $8,000.)

A home warranty is a home service contract offered by home warranty companies. Usually, it provides coverage for damage to home systems and appliances due to normal wear and tear. A home warranty costs somewhere between $350 and $1,000 with deductibles ranging between $60 and $125.

While a home warranty covers any home systems and appliances, a manufacturer’s warranty covers only individual items. Usually, when you purchase a brand new item, a manufacturer’s warranty is included for a limited time.

Once it expires, you have an option to extend it for another limited amount of time to switch to a home warranty, which can be extended indefinitely.

To compare the cost of home maintenance to the cost of a home warranty, you need to consider the age of your house, the age of home systems and appliances, and the number and cost of repairs per year. Once you’ve completed these calculations, you need to select a home warranty plan that would cover all your home systems and appliances and compare its cost to the cost of out-of-pocket repair expenses. If the home warranty plan is cheaper, it then makes sense to purchase a home warranty.

To help you compare the cost of maintenance to the cost of a home warranty, we have created a Home Maintenance Calculator that will help you decide whether a home warranty is worth it.

If one of your home systems or appliances was recently fixed, but something is wrong with it again, many home warranty companies offer a free reservice period. The free reservice period is the length of time after the original repair in which the home warranty company guarantees reservice if that original repair fails. If you experience an issue regarding your completed repair within this window of time, you won’t have to pay a second time—a contractor will come out and make the repair again.

That way, you won’t have to pay two times for the same repair.

There are three major home warranty Plan types—the Appliances plan, the Systems Plan, and the Combo Plan.

The Appliances Plan covers all major kitchen and laundry appliances, such as refrigerator, oven, dishwasher, built-in microwave, washer, and dryer.

The Systems Plan usually covers plumbing, electrical, heating, and air conditioning systems.

The Combo Plan combines coverage for both systems and appliances. As a result, the Combo Plan is usually the most expensive.