5 Things You Need to Know About a Home Warranty

Jake Hartman
By Jake Hartman | April 28th, 2021 06:07pm
Jake started TheLlama.com to help connect people with experts in financial services. He contributes to the blog at TheLlama.com.


Owning a home is a financial (and substantial!) investment. A home warranty alleviates part of this stress by protecting what’s in your home. Here are five things you can expect from every home warranty company.



1.  What’s A Home Warranty And What Does It Cover?

Its not homeowners insurance. That’s something else. A home warranty covers major components, home systems, and appliances, like HVAC (central heating ventilation air condition), hot water heaters, plumbing, electrical, washers, dryers, refrigerators, and stoves, too. What’s covered can also be customizable.

If you don’t rely on a home warranty, you could be responsible for paying hundreds or even thousands of dollars to repair or replace appliances and systems when they break. With a home warranty, all you pay is a monthly fee for coverage and a service fee for claims.

2. Reliability

In life there’s never a good time for things to break down or malfunction. With every home warranty, there’s a chance to build a relationship with a company that can help you when things go wrong.

Here’s an example: If your air conditioner is covered and stops working, all you would have to do is call the home warranty company, speak to a customer service agent, and submit a claim. Nowadays, many warranty companies even offer online claim forms for convenience. The company will alert a technician who will call you and make an appointment to come investigate the issue. (With a Home Warranty Plan, a technician responded to a customer’s claim within three hours.) If the malfunction is due to normal wear and tear, your AC will be repaired or replaced. All you pay is a service call fee.

3. Peace of Mind and Convenience.

Home warranty coverage is about more than just peace of mind; it’s also about convenience. A home service contract gives you control during unpredictable circumstances. Knowing who to call saves you time. You could avoid being out-of-pocketing hundreds or even thousands of dollars for repairs or new systems or appliances. The home warranty company takes care of that for you. Plus, instead of tracking down individual manufacturer's warranties for every appliance in your home, one home warranty covers them all.


4. A Network of Professional Contractors.

This may be one of the best reasons to get a home warranty. If you’re not the kind of homeowner who “knows a guy” locally who also happens to be qualified, affordable, available, and reliable with an unlimited amount of home repair or specialized expertise, home warranty coverage is a smart idea.

Coverage automatically connects you to a network of pre-screened professionals. A home warranty’s network of contractors and technicians has already been vetted for their skills. In many cases, these individuals are also licensed and insured. Plus, they’re monitored and reviewed regularly so you can trust whoever is showing up at your home. Rating your own experience or submitting a review to websites like Yelp.com helps inform other home warranty customers and it ensures a higher rate of customer satisfaction.

5. Cost Savings!

There’s no one way to calculate the unpredictable, but if you’re looking to safeguard yourself against paying the full retail price of expensive systems and appliances, a home warranty can be a sound part of a family’s financial plan.

A home warranty can cost anywhere from $300 to $800 per year. This comes down to monthly payments possibly as low as $25 to about $70, which does not include service fees. We found an average service fee costs $86.50. If you’re someone who’d rather pay $86.50 in exchange for a brand-new dishwasher that costs $629, join the club. That’s the investment—and the payoff—of a home warranty.

Finding the right home warranty coverage in your state is as easy as finding a company by your zip code. Once you’re covered—you’re covered. Enjoy the benefits of warranty services and of knowing that your home is protected.