Best Home Warranty Companies

Home Warranty is a service contract that helps cover the expenses of repairs and replacements for home appliances and systems that fail due to normal wear and tear.

Owners of homeowners insurance policies receive discounted service calls for particular household equipment and systems in exchange for paying a monthly or annual payment.

Home warranty can provide homeowners with peace of mind while assisting buyers and sellers during a real estate transaction.

Look for a home warranty business that charges fair premiums and service fees, has high payment limitations, has a simple claims process, and has a flexible selection of plans that include the appliances and systems you want to be protected against.

Best Home Warranty Companies

American Residential Warranty

American Residential Warranty is our #1 option because of its upfront pricing, reasonable charges, cheap service fees, and ability to create customized plans to meet our needs and budget.

Best Home Warranty Companies

Coverage is offered throughout the United States, and the company has received positive client feedback from the Better Business Bureau. 

American Residential Warranty received the highest overall rating of 4.7 stars out of five out of the twenty-five companies we analyzed.

Pros of American Residential Warranty

  • Some plans have low monthly fees.
  • You can select your technician.

Cons of American Residential Warranty

  • Every plan includes washer and dryer coverage at an additional fee.
  • Some appliances and systems have low annual limits, whereas others have higher annual limits.

Plans and Pricing of American Residential Warranty

American Residential Warranty offers policies in all 50 states, including Alaska and Hawaii. The average plan costs $555 per year, with a payment cap of $2,500 per covered appliance or system per year. 

The company claims that it begins providing service within 48 hours of receiving a service request (within 24 hours for emergency issues).

American Residential Warranty offers four basic plans, as well as two “bundles” that combine the plans:

  1. Kitchen Plus ($34.99 per month): The following items are included: built-in microwave, dishwasher, trash disposal, internal electric system, kitchen exhaust fan, range/oven/cooktop, refrigerator (save for the ice machine), and water heater.
  2. Heating and Cooling ($39.99 per month): Central air conditioning, central home heating, a humidifier, and an electrical system for the inside are all included.
  3. Platinum ($49.99 per month): Almost everything is covered by the Kitchen Plus and Heating & Cooling plans.
  4. Platinum Premier ($59.99 per month): Everything covered by the Platinum plan, as well as ceiling fans, ducting, a garage door opener, plumbing stoppages (fixtures not included), a plumbing system (fixtures not included), a range hood, and a refrigerator ice maker are included in the Gold plan.
  5. 3-in-1 Bundle: Platinum Premier + Deluxe Advantage + Ultimate Electronics Protection is a combination of the following features
  6. 4-in-1 Bundle: Platinum Premier + Deluxe Advantage + Ultimate Electronics Protection + Sewer and Water Lines = Platinum Premier + Deluxe Advantage + Ultimate Electronics Protection + Sewer and Water Lines

Coverage of American Residential Warranty

You can personalize your plan by purchasing bundles or by adding coverage for any of the following add-ons to your policy:

  • The Benefits of Air Conditioning (refrigerant and coils)
  • A second air conditioning system was installed.
  • A second central heating system for the house
  • Ceiling fans are available in a variety of styles.
  • Machines for washing clothing and drying clothes
  • Package with a Deluxe Advantage
  • Food rotting is a serious problem.
  • A machine that makes ice (in a refrigerator or standalone)
  • Advantages of Plumbing (faucets and fixtures)
  • System of pipes and fittings (does not include fixtures or clogs)
  • Range/oven/cooktop
  • A second refrigerator/freezer is required (it does not include an ice maker)
  • It is exclusively available at spas.
  • Swimming pool and spa services are available.
  • Only the swimming pool is available.
  • Thermoelectric water heater
  • Machines for washing and drying clothes

Home Warranty Inc.

Homeswarranty Inc. is our Best Overall Runner-Up because it offers a simple-to-navigate website that provides clear pricing information, a comprehensive variety of plans and add-ons, and a claim response time that is significantly faster than the industry average.

The organization provides insurance coverage in 35 states and has an A+ rating with the Better Business Bureau (BBB).

Despite finishing second in overall points to American Residential, Home Warranty Inc. should be considered when purchasing home warranty coverage.

Pros of Home Warranty Inc

  • There are no restrictions on the amount of space available.
  • You can choose your technician.

Cons of Home Warranty Inc

  • Some appliances and systems have low annual limits, whereas others have higher annual limits.
  • Mold, rust, and corrosion are not covered under this policy.

Plans and Pricing of Home Warranty Inc

According to the company’s website, the average Home Warranty Inc. plan costs $480, with a maximum aggregate payout of $15,000 each contract year (typically 14 months).

According to the business, claimants can expect a response within four hours on weekdays and 48 hours on weekends, with an average response time of 26 hours.

Among the three basic plans offered by Home Warranty Inc. (the price of which varies depending on the plan you choose and your zip code) are:

  • Home Protection: Units such as heating and cooling systems, air conditioning systems, ductwork, and water heaters; interior plumbing; plumbing stoppages; interior electrical wiring; sump pump; garbage disposal; central vacuum; garage door opener; trash compactor; refrigerator; refrigerator with built-in ice maker; dishwasher; range/oven/cooktop; washer and dryer; and range/oven/cooktop
  • Appliance Protection: an à la carte plan that allows you to pick and select which specific appliances and mechanical systems you wish to be protected against
  • Supplemental Home Protection: It complements your existing insurance by covering 14 appliances and mechanical systems.

Coverage of Home Warranty Inc

You can make a plan more personalized by including coverage for any of the optional add-ons listed below:

  • Additional $2,500 in HVAC coverage with Enhanced HVAC Plus.
  • Bathtub with jets (this does not include the jets, the bathtub shell, or the liner).
  • Roof leaks are repaired to a limited extent (30-day waiting period)
  • slab leak with a limited radius
  • a swimming pool or a spa (covers only primary pump motor and assembly and heating system)
  • Septic tank and pumping station (There is a 30-day waiting time)
  • A water softener is an appliance that softens the water.
  • Pumping from a well

First Premier Home Warranty

The quickest claim response time is provided by First Premier Home Warranty, which has the fastest response time in the industry at 20 minutes; however other providers have said that they could take up to 72 hours if claims are submitted on Saturdays and Sundays.

Best Home Warranty Companies

First Premier provides low-cost plans with acceptable service costs and large payment benefit limitations as a bonus. Except for California and Iowa, the firm sells insurance plans in every state.

It is a relatively new player in the industry, so it does not have a rating or accreditation from the Better Business Bureau (BBB).

Pros of First Premier Home Warranty

  • Response times for claims are extremely swift.
  • Plans and service costs that are extremely affordable
  • A total payout cap of $15,000 per year is imposed.

Cons of First Premier Home Warranty

  • A limited track record (est. 2020)
  • There are fewer plans than the competition.

Plans and Pricing of First Premier Home Warranty

It costs $424 on average to purchase a First Premier Home Warranty plan, with a maximum aggregate payout of $15,000 each year.

According to the company, it replies to repair requests within 20 minutes, which is far faster than the response time of any other company we tested.

In addition to the above plans, First Premier Home Warranty also offers the following plans (price varies according to the plan you choose and your zip code):

Premier: Plumbing system, plumbing stoppage, water heater, whirlpool bathtub, electrical system, range/oven/cooktop, built-in microwave, dishwasher, garbage disposal, trash compactor, ducting, garage door opener, ceiling and exhaust fans, and sump pumps are some of the issues that can arise.

Premier Platinum: Everything is included in the Premier plan, an air conditioning system (two units), a heating system (two units), a refrigerator, and a washing machine and dryer.

Coverage of First Premier Home Warranty

  • A/C system that is not included
  • Additional garage door openers are available.
  • Spa services are available on demand.
  • Adding a second water heater
  • The vacuum cleaner in the central area
  • A machine that makes ice (in-fridge or standalone)
  • Roof leakage is limited.
  • Pool/spa
  • Refrigerator number two.
  • Pumping out a septic tank
  • system of septic tanks
  • A self-contained freezer
  • A pump is a pump that collects water from a sump pit.
  • A water softener is an appliance that softens the water.
  • Pumping from a well

Cinch Home Services

The firm Cinch Home Services won our category for Cheapest Plan Cost for California and Florida due to its Complete Home Warranty plan, which offers the most comprehensive coverage that can be purchased for less than $500 per year.

The average plan costs for all plan tiers in those states are also the lowest, making Cinch the low-cost champion in this category.

This company provides coverage in every state except Alaska, Hawaii, Iowa, and Texas. It has an A-plus rating from the Better Business Bureau and a B rating from the BBB.

Pros of Cinch Home Services

  • Protection against previously unidentified medical disorders
  • Guaranteed service for 180 days

Cons of Cinch Home Services

  • Service prices that are significantly higher than the industry average
  • Some states have higher-than-average costs.

Plans and Pricing of Cinch Home Services

According to the company, the standard Cinch Home Warranty plan costs $567 per year, with a maximum aggregate payout cap of $10,000 per year. Responding to repair requests within 2-24 hours, the company claims they are on the faster end of the industry’s response range.

Cinch Home Warranty offers three different plans (the price of which varies according to the plan you choose and your zip code), which are as follows:

1. Home Appliances Warranty: A laundry, range/oven/cooktop, dishwashers, built-in food center, free ice maker, built-in oven, range exhaust hood, fridge, built-in trash compactor, wall oven, and a $25 credit toward an air conditioner or water filter are among the items included in this package.

2. Built-in Systems Warranty: A/C (including ductwork), attic fans, electric fans, central cleaner, alarm systems, electrical system, garage door opener, garbage disposal, plumbing system, smoke detection, storage tank, restrooms, hot water tank, built-in whirlpool/jetted tub, and a $25 credit for an air conditioner or water filter

3. Complete Home Warranty: Everything is covered by the Appliances and Built-in Systems plans, and a $500 reimbursement for homeowners insurance deductibles are included (available once per year).

All plans feature a complimentary water sensor, which can be used to identify leaks in your house and save you money.

Coverage of Cinch Home Services

  • You can personalize either plan by selecting one of the following add-ons:
  • Upgrade to the highest level of service (provides additional benefits on a covered plan)
  • System of septic tanks (available for first-year customers only and is not renewable)
  • Spa
  • There is a swimming pool.
  • Combination swimming pool/spa
  • Pumping from a well

Liberty Homeguard Home Warranty

The aggregate BBB customer feedback rating for Liberty Home Guard Home Warranty is 4.63, which includes over 1,200 verified reviews, indicating that Liberty Home Home Warranty is extremely popular with customers.

This was by far and probably the highest customer satisfaction rating we found for any company we studied, and it demonstrates a consistent commitment to providing excellent customer service.

Best Home Warranty Companies

Liberty also features an incredibly user-friendly website, transparent pricing, live-chat customer service, promotions, and extra add-ons, including coverage for pro-series appliances.

The company provides insurance plans in all states except for Washington and Wisconsin, and it is an accredited Better Business Bureau business with an A grade from the organization.

Pros of Liberty Homeguard Home Warranty

  • Some programs provide discounts if you sign up for multiple years.
  • A large number of optional add-ons are available.

Cons of Liberty Homeguard Home Warranty

  • You are unable to select your service technician.
  • Benefit cap with a lower-than-average payout

Plans and Pricing of Liberty Homeguard Home Warranty

With a payment ceiling of $2,000 per year per insured appliance or system, the standard Liberty Home Guard Home Warranty plan costs $587 annually.

Within 24-48 hours of receiving a service request, the business aims to dispatch repair personnel to the location.

Liberty Home Guard provides 3 basic plans (the price of which varies according to the plan you choose and your zip code):

1. Appliance Guard: Fridge, built-in oven, dishwasher, trash disposal, range/oven/cooktop, ceiling and ventilation fans, and garage door opener are just a few available amenities.

2. Systems Guard: air conditioning, heating, ductwork, plumbing, electricity, and a water heater are all examples of services.

3. Total Home Guard: The Appliances Guard and the Systems Guard plans provide comprehensive coverage.

Coverage of Liberty Homeguard Home Warranty

There is a broad number of alternative add-ons that Liberty Home Guard Home Warranty provides in addition to its three core plans. You can make your plan more specific by including coverage for any of the following things:

  • Spa services are available on demand.
  • Cleaning of carpets
  • The Casita is a guest unit.
  • The vacuum cleaner in the central area
  • Pump for ejectors
  • Protection for electronic devices
  • Generator
  • Pump for the grinder
  • Gutter cleaning is essential.
  • Ice makers are machines that produce ice (in-fridge or freestanding)
  • The dispenser of hot water on demand
  • Sprinkler system for the lawn
  • Fixtures for the lighting
  • Roof leakage is limited.
  • Pest control is important.
  • Fixtures for the plumbing system
  • Swimming pool and spa
  • Dishwasher from the Pro series
  • Dryer from the Pro-Series
  • Microwave oven from the Pro series
  • Range, oven, and cooktop from the Pro series
  • Refrigerator from the Pro-Series
  • Washing machine from the Pro-series
  • Re-key
  • System for filtration of water using reverse osmosis
  • Swimming pool with saltwater
  • Refrigerator number two.
  • Pumping out a septic system
  • A self-contained freezer
  • A pump is a pump that collects water from a sump pit.
  • A swamp cooler is a type of cooler found in swamps.
  • Compressor for garbage
  • The water pipe for the water dispenser
  • A water softener is an appliance that softens the water.
  • Pumping from a well
  • Window washing is a necessary evil.
  • Refrigerator/wine cooler

Americans Preferred Home Warranty

Our Best for Low Service Fee category is won by America’s Preferred Home Warranty thanks to its industry-low $50 service fee (you may also choose a $100 or $125 service fee).

The monthly cost of a plan declines as the service price increases, allowing you to create a plan that is tailored to your specific needs.

The Better Business Bureau has given the company an A+ rating, even though it only services a small number of states (20 in total).

Pros of Americans Preferred Home Warranty

  • You can choose your technician.
  • A+ rating from the Better Business Bureau

Cons of Americans Preferred Home Warranty

  • Only 20 states have this available.
  • There are only a few plan alternatives.

Plans and Pricing of Americans Preferred Home Warranty

Typical America’s Choice Home Warranty plan costs $517 per year, with a maximum aggregate payout of $25,000 available.

When asked about claim response time, the corporation responded by saying that it varies depending on which independent contractor you hire.

As a result of its adjustable service fees, the company offers two plans (the price of which is determined by the service fee you choose):

1. Standard Coverage: Heating and cooling systems, water heaters, integrated washing machines, fridges, range/oven/cooktop, garbage disposal, integrated microwave ovens, septic systems, attic and exhaust fans, electrical systems, plumbing stoppages, garage door openers, sump pumps, roof leak maintenance, ventilation ducts, humidifiers, and humidifier installation.

2. Preferred Upgrade: The Premium Coverage plan includes everything in the Standard Coverage plan, as well as additional coverage for ceiling fans, fire alarms, burglar alarms, lighting fixtures, and doorbells, a $250 payment to fix safety violations, and enhanced protection for many of the items in the Basic Coverage plan (i.e., water heater sediment buildup)

Coverage of Americans Preferred Home Warranty

  • You can make your plan more specific by including coverage for any of the following things:
  • Refrigerators, in addition to what is already there
  • A gas fireplace is a type of fireplace that burns gas.
  • Swimming pool and spa on the ground
  • Bathtub with jets
  • Upgrade that is preferred
  • Swimming pool and spa with saltwater
  • Sprinkler system (also known as a sprinkler system)
  • Termite control is important.
  • Washer/dryer
  • A water softener is an appliance that softens the water.

Sears Home Warranty

The largest payout cap in the industry belongs to Sears Home Warranty – its aggregate payout cap is the highest (the per-claim cap is $10,000).

The company operates in the lower 48 states and has received an A+ rating from the Better Business Bureau (via Transformco, which acquired Sears in 2019).

Pros of Sears Home Warranty

  • Guaranteed service for 180 days
  • Replacement of defective products

Cons of Sears Home Warranty

  • A huge number of customers complaining have been received.
  • Sears Holdings is still in the process of declaring bankruptcy.

Plans and Pricing of Sears Home Warranty

The average Sears Home Warranty plan costs $720 per year, with a maximum payout of $50,000 per year for the aggregate payout.

The company replies to claim requests on average within two hours (24 hours during holidays), with a response time of 13 hours.

There are three different warranty policies to pick from:

1. Appliance Plan($49.99 per month): Fridge with ice machine, built-in washer, washer/dryer, range/oven/cooktop, built-in oven, range exhaust fan, and built-in trash disposal are all included in the $49.99 per month rent.

2. System Plans($59.99 per month): Central air conditioning, central heating, plumbing system, water heater, water softener, faucets & toilets, trash disposal, plumbing shutdowns, electrical system, ceiling fans, and garage door opener are all examples of things that need to be repaired or replaced.

3. Whole Home Plan($69.99 per month): All of the items included in the Appliances and System plans

The cost of all plans includes one water heater, and one cooling unit preventive maintenance check each year at no additional charge and discounts on certain appliances and system repairs.

Coverage of Sears Home Warranty

Sears Home Warranty includes the following add-on coverage choices to allow you to personalize your plan:

  • A heated pool and/or spa are available.
  • A pumping system for a septic tank
  • A self-contained freezer
  • A sump pump is a pump that collects water from a sump pit.
  • Pumping from a well

TotalProtect Home Warranty

TotalProtect is our top option for Best Average Plan Cost since it has an annual premium of only $423. 

According to its website, the company provides coverage in all 50 states and the District of Columbia.

Even though TotalProtect received an exceptional overall score, the company’s client satisfaction review ratings with the Better Business Bureau were lower than those of the majority of the companies we analyzed.

Nonetheless, if plan pricing, particularly for a basic plan, is the most important factor, TotalProtect may be the best option.

Pros of TotalProtect Home Warranty

  • Coverage on a national scale
  • The average annual cost of a plan is $423.
  • Service guarantee for six months
  • Response times to claims are lightning-fast.

Cons of TotalProtect Home Warranty

  • Customer satisfaction is at an all-time low.
  • There is no Better Business Bureau profile available.
  • Disproportionately high service prices

Plans and Pricing of TotalProtect Home Warranty

According to the company, the average TotalProtect policy costs $423 per year, with a payment ceiling of $1,000 – $3,000 per covered item each year. According to the company, repair requests are responded to within 2-24 hours, with an average response time of 13 hours.

TotalProtect has three different plans to choose from:

1. Appliance Protect($32.99 per month with a $125 service fee per claim): Fridge, dishwasher, oven, and built-in trash compactor are all included, as are a washer and dryer. The range/cooktop/oven and range exhaust hood are all included.

2. SystemsProtect($54.99 per month with a $125 service fee per claim): Everything covered under the ApplianceProtect and SystemsProtect policies, as well as up to $1,000 in reimbursement for homeowners insurance deductibles (one claim per year)

Coverage of TotalProtect Home Warranty

Total Protect offers a variety of optional coverage choices, including the following:

  • Faucets
  • Heater for a swimming pool and/or hot tub
  • a gas line that runs outside
  • Sewer line on the outside
  • water supply from the outside
  • Upgrade to the highest level of service (provides additional benefits on a covered plan)
  • Septic tank maintenance and septic tank pumping
  • Spa
  • A self-contained freezer
  • There is a swimming pool.
  • Combination swimming pool/spa
  • A water softener is an appliance that softens the water.
  • System for pumping water from a well

Final Words on Best Home Warranty Companies

The type of coverage you require, the overall cost of the plan, and the company’s claims process are all important considerations when selecting a home warranty policy.

It is advisable to investigate and compare several insurance providers because coverage and pricing will differ.

The American Residential Warranty Company is our top pick for the year 2022. Its customized plans, nationwide coverage, inexpensive service prices, and an A+ Better Business Bureau rating are among our favorite features of the company.

We also appreciate that you can select your technician, a convenient feature if you prefer to stick with the service professionals you are currently familiar with.

How to Choose the Best Home Warranty?

It might be difficult to choose the best home warranty because there are many providers and programs to examine. 

When you’re ready to purchase a home warranty, seek organizations that provide the following services:

1. Quotations obtained from the Internet. Most home warranty companies will send you a quote after receiving some basic information, such as your name, email address, and zip code. You can receive a quote over the phone by calling the company’s customer care number if you don’t wish to provide personal information.

2. Several options are available. If you plan to purchase the plan, ensure it covers the appliances and systems you want and that it is available in your area.

3. reasonable Costs. The policy requires a monthly or annual subscription fee and a dispatch fee for each technician is dispatched. You might consider the difference between the insurance policy costs and the dispatch fees. For example, if you expect many repairs to be needed, more expensive insurance with a lower service fee may prove more cost-effective.

4. reasonable Policy limitations. Some home warranty organizations appear to be inexpensive on paper, but this may not be important if the coverage limitations are low. Generally, reputable home warranty providers provide coverage of at least $2,000 per item per year for each item covered.

5. The claims procedure is straightforward. A service claim should be submitted as quickly and easily when something goes wrong, whether by phone or online.

Home Warranty vs. Homeowner’s Insurance

Most people are aware of homeowners insurance, which protects against incidental damage to your home and belongings caused by theft, fire, storms, and natural disasters, among other things.

A house warranty ensures your home as well, but it operates differently.

It is possible to get a home warranty that will assist you in paying for replacement and repair for covered appliances and main home systems.

When an appliance or system fails, you pay a predetermined service fee for a monthly or annual subscription fee, which is deducted from your credit card.

In most cases, you will not be required to provide a house inspection or maintenance documents to purchase coverage. It makes no difference if your house is brand new or more than 50 years old.

How Do Home Warranties Work?

After selecting a plan, service charge, and any optional coverage, you may either pay in one lump sum for the entire year or make monthly payments.

Most businesses need a waiting time of 15 to 30 days after a customer purchases a plan before coverage begins to apply.

Once the waiting period has expired, you will be able to begin taking advantage of the house warranty. The coverage period for a house warranty that you purchased or received as a gift as part of a home purchase normally begins when you settle on your new home.

While the specifics vary from company to company, the following is a general overview of how a home warranty works:

1. If an appliance or system covered by your home warranty fails, you may file a claim with your home warranty company either online or over the phone. Most businesses have customer support agents available 24 hours, seven days a week.

2. Your home warranty company selects a service provider on your behalf.

3. The service provider calls you to schedule an appointment with you.

4. The specialist will come to your house to resolve an issue with your computer. If the item is covered, the technician will repair or replace it.

5. Service fees might be paid to your home warranty company or the person who performs the work (depending on your plan). The home warranty company covers the remainder.

What Does Home Warranties Cover?

A qualified appliance or system covered by a home warranty is installed in new and existing homes. Many home warranty businesses provide three different types of plans, which include:

1. Plans for appliances (such as a washer and dryer, dishwasher, and fridge)

2. Planned systems (e.g., air conditioning, heating, plumbing, and electrical)

3. Package plans that cover everything that is covered by the appliance and systems plans

When it comes to specific products that are not covered by the appliance or system plan, most firms offer optional add-on coverage.

Pools, spas, grass sprinkler systems, extra appliances (such as a second air conditioner or refrigerator), wells, and septic systems are all add-ons.

What Do Home Warranties Not Cover?

Home warranties normally do not cover anything that is not clearly stated to be covered by the policy. 

Furthermore, even if a home warranty covers an appliance or system, the warranty will not pay for any repairs or replacements that your homeowners’ insurance policy should cover.

Cosmetic damage (for example, a ding in your stainless-steel refrigerator), structural damage, damage caused by poor setup, pre-existing conditions, power surge damage, and anything else that is not considered normal wear and tear are all typically excluded from home warranties (i.e., misuse or abuse).

What Are the Biggest Complaints With Home Warranties?

The most prevalent complaint involving home warranty companies is that they refuse to pay for maintenance or replacements when they are required to do so. 

Sometimes the refusal is justified, as when a customer fails to notice an exclusion or “rule” that was clearly stated in the fine print but was noticed by the customer.

On the other hand, some unethical businesses have a reputation for avoiding payouts based on little more than a rumor.

Other common home warranty complaints included long response times, poor repair work, bad customer service, and confusing policy conditions, among other things. Before purchasing a policy, read the tiny print to ensure that you understand exactly what is and is not covered.

What Is The Cost Of Home Warranties?

When comparing home warranty plans, there are two fees to keep in mind: the service fee and the monthly (or annual) cost.

The service charge is the amount you must pay each time you demand a particular service. These costs are normally around $55 and $150 in amount. Depending on the provider, you may be able to pick between one, two, or three service fees.

In general, the cheaper the service cost, the more costly the plan will be in the long run.

If you require the services of more than one type of professional to resolve the same problem (for example, if you require the services of a plumber and an electrician to repair a water heater), you may be charged two service fees.

The “discounted” service calls are included in the monthly or annual fee to access them. According to the plan, service fee, home size, and location, these prices range from approximately $350 to more than $1,100 per year.

Are Home Warranties Worth It?

Whether or not a home warranty is appropriate for you is dependent on several considerations, along with the age of your house, the condition of your appliances, and your repair capabilities.

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It may be more beneficial for the customer to obtain a house warranty to have peace of mind in this situation.

Consequently, the topic of home warranties comes down to your risk tolerance for major spending.”

Every appliance and system in your home will eventually break down. If you are handy, you may be able to perform repairs on your own and save money.

On the other hand, many homeowners lack the necessary expertise, materials, time, and tolerance to do their repairs.

Purchasing a home warranty may be a wise financial decision in these instances.

The reason behind this is as follows: It is recommended that you set aside at least one percent of the value of your house each year for upkeep and repairs, according to the “1 percent rule.”

For example, if your home is worth $200,000, you should set aside $2,000 every year for maintenance and repairs.

Another regulation, known as the “square foot rule,” suggests that you allocate $1 per square foot of space.

As a result, if your home is 2,000 square feet, you should set aside $2,000 per year like a savings account.

Even if you utilize the service multiple times a year, the cost of a home warranty may be far below those limits on an annual basis.

Consider the following scenario: you own a $200,000 house and wish to set away from the suggested $2,000 per year for maintenance.

Consider the alternative: you purchase a house warranty. If the package costs $500 a year and includes a $100 service fee, you might submit 15 claims before reaching the $2,000 maximum payout threshold.

Of course, there’s no way to know if you’ll utilize the $2,000 you set aside—and if you don’t, you can put it aside for the next year. Similarly, you can’t foresee whether or not you’ll need to use a home warranty if you get one.

Despite this, a home warranty is frequently cost-effective in the long term. Additionally, it can undoubtedly assist you in budgeting and providing peace of mind.

Methodology of Home Warranty

There are several factors to consider when considering a home warranty business and its coverages.

Our methodology for analyzing home warranties includes a quantifiable scoring system that assesses four important criteria – total plan cost, coverage and assistance, customizability, and transparency – to aid decision-making.

The features are given fractional score values ranging from 0.00 to 1.00 points, and then the feature values are weighted according to the subject matter expert advice and the importance ranking of the consumer survey results.

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The features offered by each company are also compared with the overall industry average values, which are derived from our data collection for the top 25 home warranty providers.

Third-party ratings and customer satisfaction scores determine a home warranty provider’s overall quality, suitability, and value.

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