What should you look for in a home warranty, and which warranty company should you choose?
The main thing you should look for in a home warranty is comprehensive coverage. Take stock of your home, make a list of all the major appliances and systems and find a plan that offers coverage where you need it. One of the main benefits of Choice Home Warranty is the fact that we offer two different levels of coverage that end up covering just about any system or appliance you might have. We also have opt-in coverage for less common appliances or systems that may be expensive or difficult to replace or repair.*
If you choose a home warranty plan that offers a fundamental model of coverage plus additional options, you can craft the home warranty plan that works for your specific needs. Many warranty companies force you to go all in (paying for coverage that you may not need) or all out (meaning you’re not covered at all and at risk of getting stuck with potentially devastating repair bills). With Choice Home Warranty, your plan is customizable. This means you get what you need at an affordable cost without paying massive upcharges for extra coverage that you don’t need.
The second thing you need to look for is a plan that is affordable. According to an article published in The Balance, “You should budget $1 per square foot per year for maintenance and repair costs. If you own a 2,000-square-foot home, for example, budget $2,000 a year for maintenance and repairs.” This means that, technically, as long as you find a home warranty that is less than $2,000 for a year’s worth of coverage, you’re probably still saving money.
So how much does a Choice Home Warranty cost?
Because Choice Home Warranty is a well-established, major national company, we are able to offer significantly better rates than many of our competitors. In fact, you can get a home warranty with Choice Home Warranty starting as low as $1 a day. Often, if you use your insurance policy even once throughout the year, the home warranty 100% pays for itself.
What is the difference between a home warranty and homeowners insurance?
There are a few main differences between home warranties and homeowners insurance:
- Homeowners insurance covers you during a disaster. According to the Insurance Information Institute, this means “your homeowners policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disasters listed in your policy.” It does not cover you in the event of a flood or earthquake.
- A home warranty plan covers against general, normal wear and tear. Any homeowner will tell you that, while disasters sometimes happen, wear and tear always happen. Because appliances and systems aren’t built to last forever, they will inevitably break down over time. Just like a car warranty, a home warranty plan protects you when routine wear and tear takes its toll and your appliances and systems inevitably fail.
- Homeowners insurance cover the physical structure of your house, plus your personal belongings in the event of an insured disaster.
- Home warranties cover systems and appliances when they fail as a result of normal wear and tear. A home warranty will never cover the structure of your house or any of your personal belonging outside of the appliances and systems stated in your contract.
- Homeowners insurance is required. Well, specifically, it is usually required by lenders before they are willing to give you a mortgage. Technically, if you purchase your home for cash (or have already paid off your loan), homeowners insurance is not legally required. Of course, it is smart to protect yourself from potential disasters.
- Home warranties are never required. Home warranty plans are always 100% opt-in options. No one can force you to purchase a home warranty plan, but many homeowners do elect to purchase home warranty coverage because it gives them extra peace of mind and protects against the (sometimes significant) costs of repairing and replacing home systems and appliances.