Every person in the world has their own Goals and a list of the plan they want to accomplish. One of them is Owning a House. but nowadays, buying/owning a house is not the final step in your home security or financial security. We also Require Home Warranty Services.
But what is a home warranty? How does it work? Who pays for it? How to find out the best home or House warranty services near me? What is the Difference Between Home Warranty and Home Insurance? Today we will talk about all of these topics.
As we progress with technology, we have smart and expensive gadgets in our Homes to make our lives easier. And for obvious reasons, some of them are very costly as well.
What if they get To deteriorate?
What can we do in that situation? We will go to the market to repair or Buy a new one But.
That time may not be suitable according to our schedule or We may be busy with our other pieces of stuff. This kind of unpredictable situation can easily destroy our Peace and schedule.
But but but…
Here Come Home Warranty Services in the Game.
Which makes a promise to the House Owner. Hey, Don’t worry. Now we are here. We will take care of your all Home Major Systems or Appliances. You can now Chill with your family and friends. You don’t even have to think about your home appliances. We will cover all the things in your home.
WOW Sounds Great. Right?
But does it works like that what they tell us? Let’s dive deep down into the topic and Explore more about Home Warranty Services.
What is Home Warranty?
This is a service that ensures your Home’s Major Systems and Appliances are working properly. If any system or appliances get a failure, the service provider will send a technician to your home and He will repair or Replace the system. Of course, if you have a Home warranty plan.
This is the same as when we purchase a new Water Heater, refrigerator, or other kitchen appliances. That company whose brand is this gives us a fixed period warranty. Under the period of warranty, if mechanical failure comes up with the brand for any reason, all repair or mentaincne will be covered by the brand whose product is that.
Same as the Protection Companies Work. Suppose your that particular product company warranty has been over. Now you come to the Home warranty service company, and the same treatment will be given to you by the service provider.
Plenty of companies offer Services of Home Warranties, and they have different kinds of plans for different services.
In other words, this is just a kind of Insurance, but there are some major differences between Home Warranty services and Home insurance.
How Does a Home Warranty Work?
Now let’s talk about actually How Does a Home Warranty Work?
Here is a very simple logic and process behind this.
You Bought a new house. There will be some major systems or home appliances preinstalled and some new Home Kitchen Appliances you will add to your home if needed over the period.
But after some time, you realize we need Home Appliances Insurance, like human beings, and Auto Vehicle insurance.
Now You have a house and are looking for Home Warranty services.
Here You have 2 options; first, You can ask your Real estate agent to Recommend the Best home warranty direct. Or You can search online, for example, best home warranty for high-end appliances. These kinds of Queries.
Once you find or finalize the service provider. You select a particular plan then you read all the terms and conditions. And finally, after filling in the contact form, you pay them a Fixed premium for a Year. Or according to the service you choose.
You returned home and suppose your water heater stopped working later that week.
Simply you will make a phone call or submit an online complaint to Your service provider, and immediately, your service provider will arrange a professional technician for your home and give you a particular time to fix that.
Now at the given time, Technician will come to your house and check the water Heater and if that water heater comes fully under your plan. He will repair or replace it for free of cost.
But here is a twist whenever a technician comes to your house to Visit your problem, you have to pay him a Fixed amount of around $70-$80.
This is the Simple Logic and process of Work.
What does a home warranty cover?
This is the most crucial part of choosing any company’s plans. Because this step taken by you can Make or Break You. When we start reaching out to companies that offer Home warranty services, they show up their best things or what they want. We have to see.
And We also read their service offering page and got excited like – wow, this company offers these many covers.
Like- As airConditioner, water heaters, and Refrigerators. But the reality is different because there is also an exclusive Section where the company mentions Important things that you must read carefully. But the company wants you to miss that because they have a kind of insurance business.
They try to keep that Excludes section in small words.
It will be mentioned if they cover the Refrigerator, but this home warranty cover will Exclude Refrigerators compressors.
If you sign the contract without reading the full contract, or this Excludes section, this will make you in trouble later this way-
Suppose now you have a home warranty plan, and your Refrigerator suddenly stops working one day. Now you call your service provider. They check and found a Compressor problem.
They will deny to Repair Upfront. Because they will show There was a Refrigerator covered in the plan, Compressor was Excluded.
Peoples have their own set of Questions:-
- does home warranty cover garage door
- will home warranty replace ac unit
- do home warranties cover septic systems
- does home warranty cover sewer line
- are home warranties worth it dave ramsey
- does home warranty cover mold
But generally, we see the Following Major systems and Home appliances under Plan/services:-
- Heating Systems
- Plumbing Systems
- Electrical Systems
- HAVC (Heating, Air, Ventilation, Cooling) Systems.
- Air Conditioner
- Water Heater
- Washing Machine
These are the Main Systems or Home Appliances which companies offer. But if you want to add any other specific items. You may ask your service provider.
Cost of Home Warranty:-
This question comes to mind when we decide we need a plan. But what is the cost of home warranty plans?
so this depends on various factors, as-
- which company are you choosing?
- Which plan are you choosing?
- How long are you going to stick with them?
- How many additional services are you pursuing with your plan?
And if we talk about the number, it costs around $250-$1500 Annually, along with that additional $70-$100 service fee whenever their technician comes to your house to fix the problem.
Difference between home warranty vs home insurance-
This is almost the same as Insurance, in terms of work Nature but still, there are some major differences between home warranty vs home insurance.
Let’s start breaking down the difference –
- Gives us cover protection for major systems and home appliances.
- Examples – Ductwork, Electrical Systems, Plumbing Systems, Water heaters, Air Conditioners, and other home appliances.
- You must pay a fixed service charge of around $70-$100 whenever you call a technician for any system or appliance failure.
- Here we purchase Yearly Plans.
- Give us repair or replacement if any Major system or Appliances stop working cause of Electrical and Mechanical failure.
- Home Insurance gives us Cover protection for our Whole house. Except for home Systems and Appliances.
- Examples: Roof, Door, Windows, Wall and other Problems which come to our house.
- No Need to pay any Other service Charges whenever the Technician visits.
- We can Choose Monthly or Yearly Installments.
- Give us Protection from Any Fire or Natural disaster like- floods, Earthquakes, Landslides, Etc.
So these are the main differences between Home Warranty and Home Insurance. There will be many things your insurance provider or Warranty provider will try to exclude. So whenever you plan to purchase any Home Insurance or Home Protection, please read that Terms and Conditions page fully with every single word to Invest your Hard Earn money at the Right place or plan.
Best Home Warranty Companies-
Many Companies are in the market offering Home Protection plans or Home Warranty Plans. They came up with Three major plans: Basic Plan, Standard Plan, and Pro Plan. And Some other Companies named this Silver, Gold, and Diamond plan. But this is our second step to choose which plan we will purchase because the First step is to Research the Best Companies.
So we are providing a list of famous or Best companies. This is a random list, not in order from best to worst or worst to best. But with the next blog post, I will make a proper list of the Top and best home warranty companies. Till then, you can research the following companies to decide.
- home warranty choice home warranty
- ryan homes warranty
- ibex home warranty
- lifetime home warranty
- bfs home warranty
- Home Warranty of America, Inc.
- 2-10 Home Buyers Warranty
- First American Financial Corporation
- national home warranty
- highland homes warranty
- priority home warranty
- perry homes warranty
- m i homes warranty
- gehan homes warranty
- American Home Shield
- First American Corp
- Liberty Home Guard LLC
- America’s First Choice Home Club
Home Warranty Reviews –
Most of the time, when we go through any purchase of online products or services. We look at that company’s profile and what are the Users’ reviews. And yes, this is a good approach to knowing about any company and its after-purchase services. But do you know many times, some companies try to buy paid Reviews and that Reviews are enough to manipulate us? But this is not for every company. We have to use our due diligence during the research, and if we put our some effort, we can easily find most of the paid reviews.
So now I list the company name and their reviews on a scale of 0-5 Stars, where Zero Stars are Extremely Bad, and 5 Stars are Extremely Good. So that you can get an idea of where that companies stand, but still, after looking into their ratings, you have to Read their users’ experiences and do proper research for your Warranty plan.
- choice home warranty reviews – 3..7/5 (Total 34,031 Users Rated)
- select home warranty reviews – 3.8/5 (Total 3,849 Users Rated)
- first american reviews – 3.8/5 (Total 11,562 Users Rated)
- cinch home warranty reviews – 3.3/5 (Total 2,597 Users Rated)
- old republic reviews – 3.8/5 (Total 9,716 Users Rated)
- 2-10 home warranty reviews – 2.8/5 (Total 5 Users Rated)
- first premier reviews – 4.0/5 (Total 146 Users Rated)
- lifetime home warranty reviews – 3.7/5 (Total 366 Users Rated)
- priority reviews – 2.7/5 (Total 68 Users Rated)
- blue ribbon home warranty reviews – 4.4/5 (Total 154 Users Rated)
Home Warranty Inspection Checklist-
Before getting any service or plan of a home warranty, you make sure that you have created your checklist and that checklist is fully Applied because there are almost a 90% chances you will buy a Bad/Wrong Home Warranty Plan or Service provider.
So I will give you the My Persona Home Warranty checklist, which you can follow and print out before making any decision to ensure you avoid any losses and wrong choices.
This checklist depends on person to person according to their requirement. And also you can modify this checklist according to your needs.
Steps of Checklist:-
- List of Items- You can arrange your items list with two Columns, the First one Necessary and the Second one With Neutral. Different from what we can understand with the name of Necessary, we have to include that Item here, Which we can’t miss out on from our home warranty cover. For Example- if you need your refrigerator’s compressor should be included in Home Warranty Service Plan. Then you have to list this Item in your Necessary items list. Otherwise, if you are looking for only other components service and are okay with Compressor Exclusion, you can put this Item on the Neutral side. Following this rule, you list all the things you want to cover under service.
- Age of Items- if you purchase a new house, all items are there in their first year. Or you just recently bought some Major home appliances. Then you have to exclude these themes from your list. because there will be by default warranty service from the company which companies Item you bought. And if you purchase any Optional coverage for these items, this will only waste your money.
- Family and Friends- find any of your close friends or family member.who already purchased or used the service of any Home warranty company. And This is the most vital point to Giving your a Green signal to make a purchase. There their experience was good with the company. And if their experience could have been better and they didn’t want to continue with them. Then Directly Remove this company from your list. And Here is one more thing if their experience was good, then ask them did they ever claimed for any Major system Replace and Repair.
- Compare Companies- You must compare home warranty companies based on Price, Plan, Availability, and Users’ Genuine Reviews.
- Exclude Section- Every company has there website and terms of service or services page. You have to read every word written there about what the company will cover, what will be excluded, and when you have to pay more. This is the most critical step for every buyer. Which many users miss out on before purchase, and they Regrate later for that.
- Stick with Plan- Once you have gone through all the Steps mentioned above. Now you are solid, and you have a clear mission where you have to go. This means which company plan you have to purchase. Once you Reach out to the Service provider to buy the plan, they will suggest another plan; this will happen even if you buy plans online. You must Ignore all the Distractions, Respect your Decision, and go ahead with that.
So these are some steps you must check before you purchase to invest your hard-earned money in the right place or plan. You can add more steps to this checklist to make buying more straightforward and confident.
Home Warranty Pros & Cons –
Same as all the Other Services Home Warranty has also some good points and some flaws. so let’s talk about Home Warranty Pros & Cons.
- Home Warranty gives us Peace of Mind.
- Save Time
- Save Money
- 24*7 Service
- There are high chances of Getting Scammed by any Bad Service provider.
- Too Many conditions and fake promises
- Major Items, main components Exclusion
My Personal Tips –
Now I give you some of my simple but very useful tips, which will help you to make your decisions more effective and confidently.
Before jumping to plans, make your proper Checklist of the Major systems and Home Appliances you have. And do I need of Home Warranty plan? If yes, Make a checklist of items you want to be covered. And other items which you can exclude. Now you have a strong mindset of what you need or what not.
If your research is already done, you can check out for home services. And this will not make Bind with the Trap of the Insurance provider or Home Service Warranty Provider.
Don’t Call Technician every time. Because if the Company sends you a Technicians Visit. This will make you a Cost of fixed amount service charge of around 70-100 dollars. And if that fault is just miner or doesn’t cost more than 70-100 dollars to Repair. This will make you lose. So don’t always call a technician. check from your side first to see if you can fix that fault or failure.
Don’t buy a service for your newly purchased House. I let you know Why But if your Real estate agent already offers one for free, Then well and good. Now talk about why I am not recommending you purchase a Home warranty plan. Because when we purchase any product, there is a manufacturer warranty for the first year; if something happens with the Appliances or Product that you newly purchased. You can now claim your Service for free to Repair or Replace the Product from that company. So, in this case, purchasing a home warranty plan for this particular product will waste your Money.
Now Finally, Never Ever Forget to Read Carefully Every word of the Contract you are making with a service Provider company. Because 90% of users got trapped there. There will be an “Exclude” Section in the Contract. You must carefully examine which Major Items or Appliances will not cover under your plan. or not meeting your checklist Requirements.
For example, if AirConditioner is covered in your plan. And when you look at the Exclude section. There will be mentioned. We will not Repair or Replace Air Conditior’s Condenser or Compressor like these kinds of conditions will be there in your Contract, that’s why I am focusing on suggesting you to please make sure to dedicate enough time to read Every word of that terms and Conditions page of Your Home Warranty Plan.
Now Let’s explore Some Related queries asked by many peoples who want to know about Planning to Purchase a plan for their Major Systems or Home Appliances in the House.
Question 1. How to get your home warranty to replace ac unit?
Ans 1. You have to Check or add AirConditioner Repair or Replacement on your Home Warranty plan While you purchase the Plan.
If you have already purchased one and their AC Replacement was Excluded there. Now you can wait until Your Plan is over, Then you can purchase a new plan with a proper checklist Created by Yourself. Or if you have an Air Conditioner repair/replacement, is there in your Home Warranty plan. You have to make a phone call or email to your Service Provider. They will help you to make further process.
Question 2. Are home warranties worth it dave ramsey?
Ans 2. It depends on which plan or company you choose, and if you have the proper checklist of your requirements and Your service provider is providing you with a Service warranty without too many Excludes, you can save a lot. Otherwise, if you purchase a home warranty plan without any proper Research, it will look like a SCAM.
Question 3. How to get a home warranty to replace the air-conditioner?
Ans 3. Whenever you purchase your plan, make sure there Air Conditioner is Mentioned to repair or replacement. If Yes Now, you must look at Exclude Section to see if any Airconditioner Important Components are Excluded Like – Compressor, Condensor.
Then You have to skip this kind of Plan. If everything is on the Way, you can purchase a plan where Airconditioner replacement is Available. This Way, you can get a plan to replace the air conditioner.
Question 4. should i renew my home warranty?
Ans 4. Yes, if Your experience was good with the last Service provider. Otherwise, you can choose a New Plan With Another Company.
Question 5. does home warranty cover garage door?
Ans 5. No, Mostly companies don’t cover garage doors under Warranty. So if you are especially looking for your Garage Door Warranty, you can check out companies’ Specific plans for garage door Warranty.
Question 6. will home warranty replace ac unit?
Ans 6. Yes, If ac unit (Air Conditioner) replacement is in your plan.
Question 7. do home warranties cover septic systems?
Ans 7. Yes, Home Warranties cover Septic Systems. But as always, you must keep your eyes on the Excluded Section while making a contract or Choosing a Plan. Because companies add Septic Systems Under Home Warranty plans But Not all the Components of Septic Systems.
Question 8. Is a home warranty required in California?
Ans 8. It is not Compulsory. It depends on person to person. You can purchase it to protect your major home appliances. Otherwise, if you think you are Okay, without any plan. Just go Ahead.
Question 9. How to cancel first American home warranty?
Ans 9. You can cancel your first American home warranty here by calling them at 800.327.9292 Ext. 7521, or You can visit the Office for cancellation processes.
Question 10. does home warranty cover sewer line?
Ans 10. No, if Your Plumbing Problem from the Root of Your Water Supply. Because most Service providers try to Exclude the Sewer line. But they provide other Service covers related to Plumbing. You can ask or Check for the Sewer line coverage during the Plan You purchase.
Question 11. What is another name for a home warranty?
Ans 11. “Home Protection Plan” or “Residential Service Contract” are other names for Home Warranty.
Question 12. does home warranty cover garage door?
Ans 12. Yes, Many companies offer Garage door cover service but with Exlusions of Door, they just offer door components repair and replacement.