What Is Home Warranty?

A home warranty plan is a protection plan designed to cover any unexpected repairs you may encounter around your home. This kind of protection is excellent for new homeowners with little or no experience maintaining a home.

3D-Building-Construction-29How Can I Get a Home Warranty?

There are a number of ways of getting a home warranty:

  1. Your Realtor could include one as part of the purchase agreement for your home.
  2. You could buy a home warranty on your own through a warranty provider.
  3. If you are purchasing a newly constructed home, chances are that it is already included in the sale agreement. Most new constructions may come with a two-year warranty for the structure and a one-year warranty for the appliances. In new constructions, you may never have to use them, but you will definitely have peace of mind knowing they are there for you to use if needed.


How Do Home Warranties Work?

If something breaks down in your home, you will call your home warranty provider. They will get in touch with a third party contractor with whom they have a preexisting arrangement, and bring them up to speed. This contractor will get in touch with you to schedule a service call.

The best part about that situation is that you will not have to pay for the replacement or repair of the broken appliance. This will save you a lot of money since these repairs can cost anywhere between $700 and $1000. You will however, need to pay a trade service fee. These typically range from $75 to $125.

How much does a good Home Warranty Cost?

Home warranties are inexpensive. They usually range between $250 and $400. The amount of money you pay depends on the type of coverage you settle on. Most home warranty companies run special sales from time to time. They may also offer discounts on the policy prices, or additional coverage at the same price. These warranty policies expire after a year and can be renewed thereafter.

What Do Home Warranties Cover?


Every company or policy is different from the other. However, they typically cover these things under their plans:

1. Appliances:

dishwashers, refrigerators, washers, dryers, ranges/ cook tops /ovens, ice-makers, garage door openers, trash compactors, built-in processors, and built-in microwaves.

2. Systems:

Plumbing, heating, electrical, garbage disposals, water heaters, central vacuums, air conditioning, smoke detectors, ceiling fans, doorbells, ceiling fans, doorbells, and telephone wiring


Since all plans differ, it would be advisable to find out exactly what is covered under what plan. Find out from your Realtor if the warranty provider offers any upgrades on the plans. Find out whether the warranty provider will pay repairs to make certain types of appliances or systems compliant with any new regulations.

What Can Cause Denial of Payment?

There are instances when a warranty company may refuse to pay for a replacement or a repair. Some of these include:

  1. Lack of proper maintenance
  2. Improper installation of appliances or systems
  3. Code violations
  4. Too much wear and tear
  5. Conditions that precede the warranty
  6. System or appliance is not included in the policy. (Ensure that your policy has an “excluded appliance” clause before you pay for it)

Who Pays for the Warranty?

Whether the seller or the buyer pays for the warranty will depend on your local customs.

  • In many customs, it is usually the seller who pays for the warranty because it’s their benefit. This means that the buyer will not have to keep calling the seller after closing if anything breaks.
  • Many Realtor’s will include a home warranty at closing, as a gift to the buyersrealtor-156501_640

How Do Home Warranties Work?

Although different plans provide for different types of coverage, most work the same way.

  • If an appliance or a home system breaks, the homeowner calls the warranty company.
  • The warranty company calls a service provider with whom they already have a business arrangement.
  • The service provider calls the homeowner to set an appointment.
  • The service provider fixes the problem. If the malfunction system or appliance cannot be repaired, then depending on the warranty coverage, the warranty company will pay to purchase and replace the faulty appliance.
  • The homeowner pays a nominal service fee. (usually less than $100)

What If I disagree With the Provider’s Diagnosis?

There are instances where a service provider may deny a claim. If this happens, call your Realtor and make a complaint to them. In most cases your Realtor will get everything sorted out, since they maintain good working relationships with representatives from many home warranty companies.

Comparing and Choosing the Best Plan for You

The market is full of home warranty plans, so it is normal to find yourself confused about which plan to go with. It is important that you make the best decision about the warranty plan and the warranty company. We all know that the market is also full of fraudulent home warranty companies. Many homeowners have lost a lot of money through these companies.

Our website hosts over 100 reviews that cover more than 29 home warranty companies across the country. These reviews allow homeowners to filter through companies based on their ratings, deductible, premium, etc.

We advise our visitors to look at multiple options before settling on any plan. Carefully made decisions will keep you away from bad experiences in the future.

Should I Get a Home Warranty For a Rental Property?

There are many things to consider before making this decision.

First, you will need to look at how old the mechanical systems (heater, air conditioner, hot water heater, etc) and the home are. If the home is a new construction, chances are that not much may go wrong in the first several years. There are usually not many repairs, if any, in the first several years of a new house. Any major repairs in the first couple of years are usually covered by the builder’s warranty.

If the house is older and most of the major systems are beyond their design life, it would be advisable to get a warranty. This way if something breaks down and you have a warranty, you will save a lot of money.

Who are some of the Best Home Warranty Providers?

Our website has a section dedicated to listing the best home warranty companies. These companies are evaluated based on customer feedback. The higher a company’s rating the better their services. Go through our company evaluation section to find the industry leaders.