Ever wondered how do home warranties work and if they’re worth it? Picture this – your AC breaks down in the middle of summer, or your fridge stops cooling overnight. Now imagine making one call and having someone handle it for you. That’s the peace of mind a home warranty can bring.
Home warranties should not be confused with home insurance, and it’s not an extended warranty on a single appliance. It’s a plan that covers the repair or replacement of major home systems and appliances.
But before you sign up, it’s important to know what’s covered, how claims work, and why it might save you from expensive surprises down the road.
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What is a home warranty?
A home warranty is a service contract that covers the repair or replacement of specific appliances and systems in your home due to normal wear and tear. Home warranties save homeowners valuable time and money.
When an essential asset in a house breaks (such as an appliance), homeowners are faced with unwanted and unexpected costs. They’re usually also required to spend even more time and money to find a professional who can fix the problem.
How Do Home Warranties Work? A Step-by-Step Guide
Rather than paying a huge sum of money to fix your dishwasher, air conditioner, or other appliance in the case of a breakdown, home warranties prepare you for the worst and ensure your home is protected against unexpected events that may not be covered under your homeowner’s insurance.
Here’s a step-by-step guide to how a home warranty works:
Step 1: Pick Your Plan.
Every home is different. Some homes have pools; others have garages. Depending on the needs of your home, you’ll choose a coverage plan that protects what you need to cover. For example, with Select Home Warranty, there are three plans available, plus a fourth for optional coverage:
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- Bronze Care covers common appliances such as refrigerators, stoves, garbage disposals, microwave ovens, washers, and dryers.
- Gold Care covers home systems such as the heating system, plumbing system, electrical system, and cooling system.
- Platinum Care includes all of Gold and Bronze plus miscellaneous but common parts of your home such as garage doors, plumbing stoppage, and ceiling fans.
- Optional Coverage can be added to any Care plan to cover roof leaks, septic systems, well pumps, lawn sprinkler systems, lighting fixtures, ice makers, standalone freezers, and assets that you own two of, such as a second refrigerator or a second AC unit.
Step 2: Get a Quote.
Once you’ve read up on how do home warranties work and the right coverage for your appliances and systems, get your free quote in seconds. Just tell us about yourself and your home, and we’ll show you the costs for each plan, as well as costs for adding any optional coverage your home might require.
Before signing up, we’ll review all your coverage details and finalize your enrollment. Your home warranty coverage is then in effect thirty days after your first payment.
Step 3: make a claim.
As an example for making a claim, let’s say that by next winter, you find your hot water heater isn’t working. The average repair cost for a heating system could be as much as $800.
Thankfully, telling Select Home Warranty about the problem is easy. Just free quote online, including your name, policy number, and a description of the problem. A representative will contact you shortly to coordinate sending a qualified service technician to remedy the issue. When the technician arrives, you’ll have a service fee to pay the day of their visit, and Select Home Warranty will cover the rest based on your coverage plan.
Step 4: Appliance Repair or Replacement
The technician visits your home to inspect the appliance or system and determine whether it needs repair or replacement. If the issue is minor and the required parts are available, the technician can often complete the repair on the spot.
You’ll have to pay a service fee to the technician on the day of their visit, and Select Home Warranty will cover the rest based on your coverage plan.
How Much Do Home Warranty Plans Cost?
After you have got your answer to “how do home warranties work?” you might be wondering how much they cost. the answer depends on your location, provider, and the coverage you select. On average, prices range from $40 to $65 per month or about $480 to $720 annually, depending on the plan.
A basic plan may cost less upfront but could lead to more expensive repairs if issues arise. Home warranties simplify the repair process, making them a useful tool to avoid sudden expenses when appliances or systems fail.
How to Get a Home Warranty That’s Ideal for You
Choosing the right one requires some planning. Here’s how to navigate the process.
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- Select a Plan Type: Home warranties often focus on appliances, systems, or comprehensive plans covering both. Take stock of what you want covered and match it to available plans.
- Understand Coverage Caps: Every plan has coverage caps for different appliances and systems. If repairs exceed this cap, you’re responsible for the remainder. Be sure to understand these limits before signing.
- Budget Accordingly: Affordable plans are available but may come with trade-offs like lower coverage or higher service fees. Balance your budget with the level of coverage you need.
- Evaluate Customer Service Quality: Customer service can make or break your experience. Look for companies that offer round-the-clock support and simple claim processes.
- Read Reviews: Reputation matters. Explore reviews on sites like Google and Yelp or ask for recommendations from people you trust. A bit of research can help you avoid unreliable providers.
Bottom line: think ahead and save money.
Select Home Warranty offers a range of coverage plans that will keep your home and your wallet protected. Homeowners shouldn’t have to rely on their personal savings to cover sudden appliance and home system breakdowns. Call us at 800-670-8931 to learn more about the flexible coverage options available for your home.
Enrolling in a home warranty lessens the stress of home ownership and keeps you prepared for the day something goes wrong.
