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The average American home is made up of many systems aside from gas, plumbing, and electrical that’s built along with the housing structure. There’s the dishwasher, toilet, pool, septic pump, the washer and dryer to complement the plumbing. There’s the air conditioning system, heaters, furnaces, thermostat for climate control and there’s the microwave, the oven, the refrigerator, security systems and garage door connected to the electrical system.
What Are Home Warranties?
“A home warranty is a service contract that covers a major housing system–for example, plumbing or electrical wiring–for a set period of time” – Cornell Legal Information Institute
For those interested in getting a home warranty, we have listed our four favorites for best home warranty companies of 2019.
While the house itself is insured, these systems aren’t, and anyone of these systems can break down over time requiring the need for time, money and effort to track down employ a dozen different contractors. If you wish to have the least amount of expense and effort in case of a breakdown, consider a home warranty provider that covers as many of these supplemental systems as possible. There are many conveniences to be had in having a one-stop-shop for the repair and replacement of home systems and their appliances. Below are the top four Home Warranty Providers.
#1 – Choice Home Warranty
Choice Home Warranty is a New Jersey-based company that’s been around for eleven years with an annual income of 100 million dollars. That’s a statement of stability, something many homeowners can bank on and its longevity means that it has a broad base of regular customers. Choice Home Warranty is among America’s top 5000 fastest growing companies and has a five-star rating on Trustpilot.
So what can we expect from Choice Home Warranty? They have pretty extensive coverage of systems and appliances which include:
- Refrigerator
- Ceiling Fan
- Oven
- Water Heater
- Cooktop Exhaust Fan
- Microwave
- Garbage disposal
- Dishwasher
- Toilet
- Septic
- Sump Pump
- Well Pump
- Plumbing
- Electrical
- Garage Door
- Roof Leaks
- Ductwork
By subscribing to what they call a Total Plan nets the following:
- Pool
- Spa
- Septic System and Septic Pumping
- Second Refrigerator
- Stand-alone freezer
- Dryer
- Washer
- Heating Ventilation Air Conditioning
Pricing is straightforward. For Basic coverage, it’s around 37.50 dollars per month which are 420 dollars per year. For the Total Plan, it’s 43 dollars a month and 485 dollars per year. If you have a rather large home with a pool, the Total Plan is a safe bet; and the better chance if you can afford to get a home warranty plan. Both plans have free 13th-month coverage.
Choice Home Warranty has an extensive network of contractors available, and claims can be submitted 24/7. Contractors arrive within two business days with instant expediency for emergencies. They do have a 75-dollar service fee per contractor visit but can be less if the parts for the damaged appliance/system is less than 75. The amount is a steal, especially for appliance replacements.
What are the advantages of choosing Choice?
- No annual caps on claims. Customers can make any number of claims for the year as long as the damages fall within agreed terms.
- 24/7 claims hotline
- 30/90-day service guarantee depending on the damaged system but contractors arrive within the first two days.
- Countrywide coverage
- No home inspection requirement, but will not cover pre-existing conditions on systems and appliances.
There are; however, a few nitpicks rather than disadvantages:
- Some run-ins with the Better Business Bureau but the company’s reputation is good enough that many homeowners switch over to Choice from other providers.
- Its simple two-package choice can also be considered inflexible.
- Allows only contractors within its network.
Choice Home Warranty overall is a stable and experienced home warranty provider, practically a name that represents the industry.
#2 – American Home Shield
Speaking of experience, American Home Shield is another top home warranty provider covering all 50 states and has been around for over 45 years, making it one of the founders of the industry. American Home Shield has over 1.8 million customers, over 15,000 partner contractors, and over 2 billion dollars in paid home warranty claims, which is something prospective customers can get behind on. What sets it apart from others is flexibility and fast service, thanks to years of accumulated experience.
So what can we expect from American Home Shield? American Home Shield has three basic plans with pretty extensive coverage of systems and appliances which include:
- System Plan
- Heating
- Electrical
- Plumbing
- Air Conditioning
- Stove/Oven
- Smoke Detectors
- Ceiling Fans
- Door Bells
- Water Heaters
- Garbage Disposals
- Central Vacuums
- Appliance Plan
- Microwave
- Dishwasher
- Garage Door
- Trash Compactors
- Refrigerators
- Ovens
- Washer and dryer
- Ice Maker/Freezer
- The combo plan which covers all mentioned in Appliance and System plans.
Pricing is straightforward. For the Systems-only coverage, it’s around 35 dollars per month which are 440 dollars per year. For the Appliance Plan, it’s also 35 dollars a month and 440 dollars per year. The combo plan, which is the more preferable of the two is an affordable 45 dollars per month if you have a rather large home with plenty of systems and appliances.
Pricing, however, is not definite, which is due to their flexibility as their plans can be customized to fit the customer’s needs which is what they call the Build Your Plan. The pricing is also location-dependent. The following systems and appliances become covered in the Build Your Plan option:
- Pools
- Spa
- Septic tanks
- Well Pump
American Home Shield has an extensive network of over 15000 contractors available, and claims can be submitted 24/7. Contractors arrive within 48 hours. They also have a 75-dollar service fee per contractor visit. The customer can also pay higher in exchange for lower monthly premiums. The amount is a steal, especially for appliance replacements. American Home Shield also allows out-of-network contractors meaning customers can select a contractor of their choice. American Home Shield, however, has a 1500 coverage cap for systems. For appliances, they can work on any make or model regardless of age as they seem to have some stock of parts over the years. Unlike other contractors, American Home Shield offers free equipment/appliance removal during replacements.
What are the advantages of choosing American Home Shield?
- No annual caps on claims.
- 24/7 claims hotline
- 48-hour dispatch, arrival in mostly within 24 hours.
- Countrywide coverage
- No home inspection requirement, but will not cover pre-existing conditions on systems and appliances as per industry standard.
- No maintenance record requirement. Who keeps those? Will work on any make or model.
- Referral system for additional discounts and other benefits
- Free equipment removal/disposal
- Allows out of-network contractors
Overall, American Home Shield is another excellent choice for a home warranty provider in terms of service, pricing, and flexibility.
#3 – Select Home Warranty
Is a rather popular Home Warranty provider that’s also based in New Jersey. Select Home Warranty has been billed as Best in Service from the Home Warranty Awards last 2017. They have three pricing plans available, Gold, Platinum, and Bronze. See what these plans cover below:
- Gold – mostly dealing with home systems
- Air-conditioning
- Heating System
- Plumbing System
- Electrical System
- Water Heater
- Ductwork
- Bronze – deals with appliances
- Clothes Washer
- Garbage Disposal
- Refrigerator
- Stove/Oven
- Dishwasher
- Clothes Dryer
- Microwave (built-in)
- Platinum – which covers all items in Gold and Bronze plans.
The pricing is competitive with Gold and Bronze plans costing 429 dollars annually or 35.75 dollars a month. The Platinum plan costs 499 dollars annually or 41.6 dollars a month. They come up with promos and discounts from time to time, such as free roof coverage or additional months free.
They also allow for flexibility such as adding to the customer’s chosen plan to cover things like pools, spas, lawn watering systems, stand-alone freezers, sumps, and well pumps. The standard service fees are much cheaper, going for 45 to 60 dollars depending on the contract.
What are the advantages of selecting Select Home Warranty?
- Cheaper service fee/deductible
- 24/7 claims hotline
- Fast claim turnaround
- No home inspection required
Disadvantages
- Requires appliance service record
- No free appliance removal. Customer is issued a check to purchase replacement equipment.
Conclusion. Select Home Warranty is the best choice for as a home warranty option for people on a budget. Service has so far been deemed suitable with a B rating from the Better Business Bureau, so it’s worth a try.
#4 – The Home Service Club
The Home Service Club is a relatively young home warranty provider at ten years. However, such is a sufficient amount of time for this New-York based company to build a good reputation. The Home Service Club has over 10,000 partner contractors at its disposal.
The Home Service Club has a slightly different approach to its plans and pricing. They only have two plans which are as follows:
- Standard Coverage mostly for home systems
- Air Conditioning
- Heating System
- Central Vacuum
- Plumbing System and Faucets
- Electrical System
- Water Heater
- Ceiling Fans
- Garbage Disposal
- Garage Door Opener
- Trash Compactor
- Dishwasher
- Oven/range/cooktop
- Washer/Dryer
- Refrigerator
- Comprehensive Coverage – covers all items in Standard as well as
- Water Dispenser
- Water leaks
- Sump Pump
- Hot Water Pump
- Ductwork
- Telephone Wiring
- Alarm Wiring
- Doorbells
- Smoke Detectors
- Gas leaks
- Also, Pest control
- Other options not included in Standard and Comprehensive are offered as add-ons that can be applied to either plan. The add-ons include
- Roof
- Pool
- Spa
- Outside Sewer Line
- Outside Electric Line
- Sprinkler System
- Grinder pump systems
- Additional Refrigerator/freezer
- Additional microwave
- Utility lines
- Outside gas line
- Additional dishwasher
- Additional washer/dryer
- Well pumps
- Jetted bathtubs
- Additional water heater
What’s great about Home Service Club?
- Has provisions for outside systems
- Flexibility
- Immediate warranty coverage ten days after contract signing
Disadvantages
- Limited coverage with service caps such as 6000 annually for standard and 9000 for comprehensive
- No Definite pricing
- C rating at the Better Business Bureau
In conclusion, the Home Service Club is excellent for people looking for a flexible, highly customizable home warranty plan. It’s also great for people looking for a home warranty provider that supports many external home systems.
Therefore, if you want to save money on repair costs, have peace of mind when it comes to your home systems and appliances, it’s a good idea to purchase a home warranty plan on top of your home insurance policy. We hope this list has given you much to consider.
A FAQ on Home Warranties
What is a Home Warranty?
According to the Cornell Legal Information Institute, a home warranty is a service contract that covers a significant housing system–for example, plumbing or electrical wiring–for a set period of time.
How does a Home Warranty differ from Home Insurance?
Home insurance protects the home/structure itself from possible disasters that might happen, such as hurricanes, flooding, and fires. A home warranty covers home systems and appliances that are not covered by home insurance such as plumbing, toilets, and electrical systems. The home warranty allows for the repair or replacement of devices such as refrigerators, washers, ovens heaters and air conditioners that would otherwise be too expensive to repair or replace individually, and also covers the cost for the labor.
I already have warranties for my systems and appliances. Why do I need a Home Warranty?
The typical warranty period for systems and appliances is one to two years. Once these warranties expire, owners have to foot the bill for parts and labor as well as removal and disposal. Systems and appliances are often used past their warranty periods and lifespans, but Home Warranty providers will cover both new and old appliances and systems.
Will Home Warranty providers inspect my systems and appliances?
No. At most they will account them visually and that they are in working condition. They will not ask for any maintenance records nor consider their age.
How Do Home Warranty Plans Work?
Home warranty plans are simple. Home warranty providers partner with a network of contractors that non-plan owners would otherwise contact individually. If a home system fails, like air conditioning or an appliance is broken, the homeowner calls the provider’s hotline to file a claim which often gets processed within 24 hours. The provider will then get in touch with the nearest contractor and have a broken system or appliance repaired or replaced. The same goes for everything else covered by the home warranty all for the small fixed monthly premium and the contractor’s deductible service fee.
What is a Deductible?
A deductible is a small fee charged by the home warranty provider per issue raised to be paid to the contractor. Deductible charges vary from provider to provider. Some companies do not charge deductibles.
Do Home Warranty Providers Allow for my favorite contractor?
It would be fortunate if the contractor is part of the home warranty network. If not, some providers allow for non-networked contractors but might involve some extra expense.
How Many Claims can I file per month?
It depends on the contractor as well as the agreement. Major contractors do not have caps on claims.
Can Home Warranty Providers Deny My Claims?
Yes, they can, usually based on the following: unusual wear and tear due to improper use, improper installations as well as pre-existing conditions though some providers do see past these.
Can my Budget Handle a Home Warranty?
Let’s say it’s a good idea. Home warranty monthly premiums are equivalent to one takeout family meal. Annual premiums can be between 300 to 500 dollars. Individual repairs and replacements could cost a fortune. Consider the worst-case scenario of flooding where not only the home is damaged, but everything in it as well. The structure is insured and gets repaired thanks to the home insurance, but it doesn’t cover the damaged appliances. The home warrant solves that problem. The minimum worst scenario is the occurrence of successive breakdowns of linked systems or random appliances in a short period.