Everything You Need to Know About Home Warranty Coverage 


    Home warranties provide homeowners with peace of mind, especially when it comes to older systems and appliances that are nearing the end of their lifespan. But, before you decide to get one, it’s important to understand its limitations and costs. Home warranty, is it worth it? Many homeowners say they benefit from a warranty which provides a peace of mind for them. 

    First-time buyers often purchase them to avoid depleting their emergency funds while trying to fix a broken system or appliance. But, are they worth it? 


    Home warranties offer financial protection for homeowners and peace of mind. They typically cover a wide range of appliances and systems in the home. They also provide a convenient claims process and professional service providers. Homeowners should compare plans carefully and look for reviews from other customers. They should also check for state regulators’ complaints and warnings against home warranty companies. 

    The cost of a home warranty varies depending on the company and plan level. Most providers offer several different plan options, including an appliance only plan, a systems plan, and a combination plan. The plan level also determines the service fee, which is paid to the repair service provider when a claim is made. 

    Home warranties can cost between a few hundred to over $1,000 per year. Generally, the more coverage you have, the higher the cost will be. However, the costs of a home warranty can be offset by savings on repair bills. 


    Home warranty coverage offers financial protection against unexpected repair and replacement costs for a variety of home systems and appliances. It also provides convenience with a streamlined claims process and access to qualified service providers. However, it is important to carefully review a home warranty contract before signing. Testimonials and reviews can help you determine if a particular provider has the right plan for your needs. 

    Home warranties generally exclude repairs that occur due to normal wear and tear, or those caused by improper installation or modification of an appliance or system. They also may not cover certain structures, such as pools or roofs. Some companies offer specialized home warranty plans for veterans and military personnel, which often come with additional benefits and discounts. 

    The cost of a home warranty varies by provider and plan, but most include a yearly premium and a service fee for each claim. These fees are used to pay for the services rendered by professional contractors. 

    Red flags 

    Home warranty companies provide peace of mind and financial stability by offering

    a network of service providers to repair or replace your systems and appliances. However, scammers also operate in the industry and can be difficult to identify. You can avoid falling victim to these scams by looking for red flags, such as hidden fees, a difficult claims or cancellation process, and bad customer reviews. 

    The best home warranty companies will post a sample contract online for each plan, and they should be able to explain the terms and conditions of the coverage clearly. These should include the home systems and appliances covered, the service fee, the monetary limits for each repair, and any exclusions. 

    You should also check whether the company is licensed to do business in your state. If they aren’t, you should consider other options. You should also search online customer review sites such as the Better Business Bureau, Angi and Consumer Reports, and check for complaints filed with your state attorney general’s office. 

    Claims process 

    Typically, when an appliance or system breaks down, you’ll need to file a claim. Most home warranty companies have a 24/7 claims number or a client portal on their website that allows you to place a service request by filling out a form. On average, it takes 48 hours for the company to contact a contractor and schedule an appointment to repair the broken item. 

    However, it’s important to carefully review the terms of your coverage before filing a claim. Depending on your plan, some providers have exclusions for pre-existing conditions, damage caused by improper maintenance or installation, cosmetic issues, and more. Most also have limits on how much they’ll pay to repair or replace an item. In addition, most home warranties charge a nonrefundable service fee each time a system or appliance is fixed. This fee can significantly reduce the value of your coverage. The fee should be listed in your contract as a service call charge or something similar.