Important tips for selecting a home warranty plan

Important tips for selecting a home warranty plan

Most homeowners are familiar with a home warranty. It is a contract that homeowners have to renew every year. It takes care of servicing, replacement, or repair of major home appliances. It comes with a monthly or yearly premium, just like any insurance policy. However, unlike insurance, home warranties are created to offer specific system and unit coverages listed on the warranty. This article highlights some tips and companies that provide optimal home warranty contracts.

Services covered under home warranty
A warranty’s coverage depends on the plan one has opted for. There are many services covered by extensive plans. But basic warranties usually cover these services:

Roof repairs or replacement
Air conditioning units
Ductwork
Plumbing systems
Heating systems
Electrical systems
Refrigerator
Oven
Dishwasher
Washer and dryer

How to choose optimal home warranty option

Work on your coverage list
Assessing the appliances, units, and systems that need coverage will help you opt for a suitable plan. For example, if your air conditioning and heating unit is brand new, you may not need a plan that includes these two. The older the system, the more refurbishment and repair it may need. Prepare of list of such appliances before looking for comprehensive packages. Compare the package with individual warranties to know which one works best for your home.

Compare quotes
It’s advisable to research for multiple home warranty companies. Various companies offer different plans and coverages at competitive prices. Make sure to check these prices and compare quotes to get a fair deal.

Don’t miss the fine print
Read the entire plan thoroughly for hidden prices, membership benefits, and reimbursement claims. These details may vary with each company. So, read the terms and conditions carefully before committing to a warranty plan.

Home warranty companies

First American Home Warranty
This brand has been in the business for over 35 years. Their yearly contract is renewable, and it usually covers appliances and home system units. They offer two plans — Basic and Premier. The Basic plan covers appliances like dishwasher, refrigerator, oven, clothes washer and dryer, among others. Whereas, the Premier plan covers major household systems like ductwork, plumbing, electrical, water heater, garage door opener, and a few others. In case your appliance or home unit needs to be assessed, First American Home Warranty will set up a screening process to repair or replace it. With an extensive network of qualified technicians, they also offer flexible payment options. First American Home Warranty’s pricing will differ as per your location. You can visit their official website to get a quote.

American Home Shield® (AHS)
AHS home warranty coverages include over 21 different types of electrical devices that include heating and cooling units, electrical and plumbing systems, kitchen appliances and even pool or spa components. One can opt for an AHS plan to cover items that are excluded from a homeowner’s insurance. Moreover, the age and condition of the appliance is not a prerequisite for any coverage. That’s the most optimal way to plan a home warranty. The pricing for an AHS plan varies depending on the appliance opted for, type of plan, and your location. In case you plan to go ahead with AHS, one can expect an annual cost of around $480, excluding service fees.