The Complete Guide to Home Warranty Shopping in 2023
A home warranty is a service contract that covers the repair or replacement of major home appliances and systems if they break down due to normal wear and tear. Home warranties can provide peace of mind for homeowners, as they can help to offset the cost of unexpected repairs and replacements.
Table of Contents
- How does a home warranty work?
- What does a home warranty cover?
- How much does a home warranty cost?
- Is a home warranty worth it?
- How to choose a home warranty company
- Tips for using a home warranty
How does a home warranty work?
When you purchase a home warranty, you will pay a monthly or annual premium. If a covered appliance or system breaks down, you will contact your home warranty company to file a claim. The company will then send a technician to your home to diagnose the problem. If the problem is covered by your warranty, the company will pay for the repair or replacement of the appliance or system.
What does a home warranty cover?
Home warranties typically cover a wide range of major home appliances and systems, including:
- Air conditioning
- Heating
- Plumbing
- Electrical
- Refrigeration
- Washers and dryers
- Dishwashers
- Garbage disposals
- Stovetops
- Ovens
- Microwaves
- Water heaters
How much does a home warranty cost?
The cost of a home warranty will vary depending on the size and age of your home, the type of coverage you choose, and the home warranty company you select. However, most home warranties cost between $30 and $70 per month.
Is a home warranty worth it?
Whether or not a home warranty is worth it for you will depend on your individual circumstances. If you have a relatively new home and you are comfortable with the cost of unexpected repairs and replacements, then you may not need a home warranty. However, if you have an older home or if you are not comfortable with the cost of unexpected repairs and replacements, then a home warranty may be a good investment for you.
How to choose a home warranty company
When choosing a home warranty company, it is important to consider the following factors:
- Coverage: Make sure that the home warranty company you choose covers the appliances and systems that are important to you.
- Price: Compare the prices of different home warranty companies before you make a decision.
- Reputation: Read reviews of different home warranty companies to get an idea of their reputation.
- Customer service: Make sure that the home warranty company you choose offers good customer service.
Tips for using a home warranty
Here are some tips for using a home warranty:
- Read the contract carefully: Before you purchase a home warranty, read the contract carefully to understand what is covered and what is not covered.
- File claims promptly: If an appliance or system covered by your home warranty breaks down, file a claim promptly. This will help to ensure that your claim is processed quickly and efficiently.
- Be prepared to pay a service fee: Most home warranty companies charge a service fee for each claim that is filed. This fee is typically between $50 and $100.
Conclusion
A home warranty can be a valuable investment for homeowners. By following the tips above, you can choose the best home warranty company for your needs and budget.
Additional Resources
- Consumer Reports: Consumer Reports is a nonprofit organization that provides unbiased reviews of products and services. The Consumer Reports website includes reviews of home warranty companies.
- Better Business Bureau (BBB): The BBB is a nonprofit organization that helps consumers to resolve disputes with businesses. The BBB website includes ratings and reviews of businesses, including home warranty companies.
- USA.gov State Consumer Protection Offices: The USA.gov State consumer protection offices directory provides contact information for each state's consumer protection office. These offices help consumers resolve complaints about businesses and products, and they can also provide information about consumer rights and protections.