How to shop for a home warranty

A home warranty can help homeowners protect their budgets by covering some home repair costs in ways that can fill in the gaps of home insurance.

For example, if appliances like dishwashers or dryers break, a home warranty could limit how much you have to pay out of pocket to fix or replace the machine.

While you might not always come out ahead financially with a home warranty plan — the cost of repairs might not outweigh the cost of coverage for some people — you can limit your risk and worry less about expensive incidents. 

If you think you would benefit from having a home warranty then reach out to a professional today. Start with a free quote today. 

How to shop for a home warranty

There can be significant differences in terms of what home warranty providers cover and how they provide their services. So, if you’re shopping for a home warranty, you likely want to scrutinize different coverage options. Consider the following five steps:

1. Determine what coverage is wanted/needed 

To make quality comparisons between providers, start by determining what type of coverage you’re looking for. Some homeowners want more basic coverage that provides warranties for major appliances, for example, whereas others might want more comprehensive plans that protect against plumbing or electrical issues. 

2. Compare policies/quotes among providers

By narrowing down what you’re looking for, you can then see how different providers compare on price on more of an apples-to-apples basis. Consider the details. Two providers might both provide HVAC coverage, for example, but one plan might just include HVAC repairs, whereas another might include a seasonal HVAC tune-up.

In addition to looking at the coverage and overall price of home warranty plans, look at details like the service fees that different providers charge. When you need a repair, you don’t want to be caught off guard by paying a higher service fee than you anticipated. 

Speak with a home warranty professional or use the table below to start comparing your options. 

3. Read customer reviews

Looking at what other customers think of different home warranty services can help you get a better sense of which providers align with your needs.

You might find that some home warranty companies excel at providing fast response times, whereas others might have reviews that tout the fair pricing the company provides. And if there are negatives, like difficulties getting the home warranty repairs approved, you’ll likely want to know about that ahead of time.

4. Review the fine print

Don’t gloss over the fine print of home warranty plans. You can look at sample contracts from different home warranty providers to see specifics on what exactly is included in the warranty coverage and how things like appliance repair or appliance replacement are handled.

For example, a home warranty plan might cover the repair of motors within an appliance but not necessarily the doors of an appliance. 

Looking at the fine print can also reveal additional information about fees. If you need an appliance replacement, for instance, you probably want to know whether the home warranty provider would include the removal of your old appliance vs. there being an extra cost.

5. Choose the specifics with your provider

Once you complete all the background research, you can choose a home warranty provider. When making your selection, you can choose the specific home warranty services you’re looking for. The home warranty provider you want to purchase coverage from might offer a base plan, and you can then add additional protections from there, like a premium plan that includes additional plumbing services.

You can also finalize decisions like how you’ll pay for the home warranty plan. You might have some flexibility, like choosing between monthly plans vs. annual payments.

Also, if you’re a landlord buying a home warranty plan for your rental property, then you might want to consider how you’ll manage the plan. Once you choose the provider, you might take steps like adding tenants as authorized users so they can request services from the plan if needed.

The bottom line

Home warranty coverage can give you peace of mind in case appliances or other systems in your home break. But don’t rush into choosing a home warranty. Going through these steps and carefully considering your options can help you choose the best home warranty plan for your circumstances.

Speak with a home warranty specialist today who can help you find a cost-effective and reliable plan.