What is a Home Warranty?
A home warranty is a protection plan that offers coverage for common home repairs. For a simple annual fee, this type of plan offers financial security from unexpected problems with your home appliances and systems that are not covered by your homeowners' insurance.
As of 2019, home warranties allow homeowners to pay an annual fee for repair and replacement service of covered appliances and systems. A home warranty is also known as a service contract.
What Does a Home Warranty Company Cover?
The legal definition of a home warranty, as designated by the Cornell Legal Information Institute, is “a service contract that covers a major housing system–for example, plumbing or electrical wiring–for a set period of time from the date a house is sold”. These contracts protect homeowners from the high cost of unexpected appliance breakdowns and system failures. These appliances and systems are not covered under a homeowner’s insurance policy. With a home warranty, you’ll be covered if your refrigerator stops running or your plumbing backs up. That can save you money and frustration. Home warranties are service contracts that promise fast, effective service for problems with your covered home appliances and systems. They offer protection not just for your home, but also for your budget and time. A home warranty covers systems and appliances within the home that suffer from wear and tear over time. The amount of coverage is determined by the policyholder. You can customize a plan that best suits your home. A typical plan covers:
- Heating systems and ductwork
- Plumbing systems
- Electrical systems
- Water heater
- Kitchen appliances, including your oven, range, stove, cooktop, dishwasher, and built-in microwave
- Garbage disposal
- Whirlpool bathtub
- Plumbing stoppage
- Garage door opener
- Exhaust fans
- Ceiling fans
If you’d like more extensive coverage, you can opt for a more comprehensive plan. A Total Plan from Choice Home Warranty includes all of the above as well as your:
- Air conditioning system
- Clothes washer
- Clothes dryer
You can even customize your plan to include additional coverage for other systems in your home. This personalization lets you to build a plan that’s exactly what you need for your home. Some of the optional add-ons you can select include coverage for:
- Pool and spa
- Central vacuum system
- Well pump
- Roof leaks
- Sump pump
- Septic system and septic tank pumping
- Second refrigerator or a stand-alone freezer
Tailor your warranty to include coverage for the systems that matter most. If you’re concerned about the age or reliability of particular parts of your home, you can build a plan that protects those elements. If your system needs extensive repairs or a full replacement, your warranty can then offer all the coverage you need for the incident, so a potential disaster becomes a minor addition to your to-do list thanks to the convenience of your home warranty.
Which Is the Best Home Warranty Company in 2019?
Since it was established over 11 years ago, Choice Home Warranty has stayed true to its mission of protecting homeowners, buyers, and sellers with the best service in the industry at the lowest cost. The reason that Choice is the premier home warranty company for thousands of happy policy holders throughout the United States is that we listen to our customers. This means we can give them the coverage and quality of service they deserve. Don’t take our word for it. See what people are saying about Choice Home Warranty and why it is consistently recognized as the best home warranty company.
Home Warranty Benefits
The breakdown of appliances and home systems cannot be avoided by any homeowner. The high cost of repair or replacement can be avoided if a home warranty is in place. Here are some of the benefits of owning a Choice Home Warranty:
- Save Money – Avoid having to pay for repair or replacement of your appliances and home systems each time they break down or malfunction.
- Peace of Mind – Rest assured that your home appliances and systems are covered when service is needed, even if it is due to normal wear and tear.
- Convenience – With Choice Home Warranty, you never have to go out and look for the right service professional. Simply call our 24/7 customer service and we will send the right professional to your home.
- Customization – Don’t pay for coverage you don’t need. Our customizable plans allow you to only pay for the coverage that applies to your home and situation.
- Free Month – Sign up today and enjoy a full month of free service.
What Is the Average Cost of a Home Warranty?
Home warranty plan costs vary based on the homeowner’s:
- Place of residence
- Desired level of protection
- Dwelling size
- Type of home
Families have the flexibility to choose between total and basic plans depending on the type and number of appliances they would like included in their plan. There is also optional coverage that will add features like a pool or septic system. You can get a quick quote online that will give you a better idea of how much your home warranty plan will cost. Make a wish list of what systems you want covered before you sign up. Working with a customer service representative, you can go through your wants and needs to find the plan that’s best for your family.
Who Should Pay for a Home Warranty?
A home warranty is smart if:
- You’re purchasing a home
- You have older appliances
- You don’t have access to an emergency fund for repairs
- You want to simplify home repairs and replacements
What is the Difference Between Home Warranty and Home Insurance?
The main difference between a home warranty and home insurance is that your home warranty covers appliance and systems in your home that will require servicing, maintenance and/or replacement. It acts as a service contract to lessen the financial burden of owning household items that have an estimated life expectancy. The warranty may be used in the absence of sudden or accidental damage to the home. The following items would fall within this category, depending on the extent of your coverage:
- HVAC (air conditioning system)
- Water heater
- Pool pump
A homeowners’ insurance policy only covers elements of the home that might need to be serviced or replaced due to unexpected damage, such as hurricanes, lightning strikes or fire. The incidents where a homeowner attempts to use a household appliance, only to find out that it is not functioning properly, would not be covered under a home insurance policy. In short, a home warranty will cover home systems and appliances that fail due to normal wear and tear (coverage extent based on contract) whereas homeowners’ insurance will not. For this reason, a home warranty is a good investment since it will be used at some point. This is because all home systems and appliances will eventually fail. Having both policies secures your investment and relieves your anxiety of pending costs.
What is a Home Protection Plan?
Your home protection plan is essentially the same as your home warranty. This plan specifies the coverage and protection that you’re given in the case of a home repair or replacement. When you’re ready to use your home protection plan, simply contact our Claims Department at 1-888-531-5403 and explain your needs to a customer service representative or submit a claim online. Our customer service center is available 24 hours a day, 7 days a week, 365 days a year. We will connect you with qualified repair professionals in your area. You don’t need to research local contractors or call around for the best pricing when you’re covered by a home protection plan. The repair process is simplified for your convenience. Other than a trade call fee and any applicable deductibles, the cost of repairs are covered. When your service provider arrives to handle the repair, there is nothing more you need to do. If your equipment cannot be repaired, your home protection plan may even cover a full replacement. A home protection plan offers peace of mind throughout the year. You won’t have to worry about steep expenses associated with major repairs or replacements. Explore your options carefully to find the best fit for your home and lifestyle. Now you’re enjoying affordable coverage that meets all your needs.
Can You Get a Home Warranty After Purchase?
You can absolutely get a home warranty after purchasing a home or appliance. Many homeowners realize after purchasing a home that the appliances are very old. This does not prevent them from purchasing a warranty to protect those appliances and systems before they begin to fail. Furthermore, many homeowners decide to purchase a home warranty for the first time when they are trying to sell their house. By doing this, the seller can often get a higher price for their home and improve their chances of selling it more quickly.
How It Works
Purchasing and using a home warranty is easy. Simply follow these easy steps to protect your home and appliances: