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10 Things to Look for in a Home Warranty

Feb 12, 2024

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A home warranty is a wise investment that protects homeowners from the high cost of system repair or replacement. Every plan is different, and some are better than others. In this guide, we’ll explore ten factors to consider when choosing a warranty plan.

The Extent of Coverage

The depth and breadth of coverage is one of the most crucial considerations when buying a home warranty. Comprehensive plans should cover systems like electrical wiring, HVAC, appliances, and plumbing. Understanding the extent of coverage ensures adequate protection from a range of issues.

Service Call Fees and Trip Charges

While a warranty’s initial cost may be low, service call fees can add up quickly. A service call fee is the amount paid for each visit, and it is separate from the cost of repairs. When selecting a plan, strike a balance between service fees and coverage value.

Plans and Pricing

Next, compare the plans and pricing offered by home warranty providers. Plans with flexibility and transparent pricing are more likely to meet homeowners’ needs. Read each plan’s terms and conditions carefully and be skeptical of those with hidden fees.

Plan Terms, Conditions, Limitations, and Exclusions

Thoroughly review each warranty plan’s terms, conditions, limitations, and exclusions as they’re outlined in the contract. Some plans exclude certain systems, poor maintenance, and pre-existing conditions. Knowing a plan’s limitations helps you set realistic expectations and avoid costly disputes.

The Claims Process: How Easy Is It?

An efficient and user-friendly claims process is part of a positive warranty experience. Before choosing a plan, learn how claims are filed, how long it takes to receive a response, and how claims are resolved. Warranty providers with accessible, streamlined claims processes tend to offer smoother experiences.

Customer Reviews and Company Reputation

Research the warranty provider’s reputation by reading customer testimonials and reviews. A reliable provider will offer positive feedback from homeowners who have received timely, satisfactory resolutions to their problems. Online reviews offer valuable insights and give an idea of what to expect.

Contract Length

Understanding the duration of a home warranty contract is a crucial step. Some warranty providers offer yearly plans, while others have shorter or longer terms. Consider your long-term plans and choose a warranty plan that meets your needs.

Provider Choice

Check whether the warranty plan allows you to choose a provider or if they use a preferred network. The ability to select a contractor is a significant advantage, especially if you’ve established a working relationship with a trusted local professional.


If your plans include a home sale, consider a warranty that’s transferable to a new owner. This increases the home’s resale value and offers buyers additional assurance.

Extra Benefits

Some warranty plans offer benefits beyond basic coverage, like discounts on preventive maintenance and appliance upgrades or coverage for specialty items. Assess the availability of these perks to determine a home warranty plan’s overall value.

Consider These Factors and Make an Informed Decision

Buying a home warranty plan is an investment in the longevity and protection of your home. By considering these ten factors, you can easily navigate the warranty market and choose a plan that meets your needs. When chosen properly, a home warranty offers financial security and makes it easier to enjoy all the comforts of home.

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