Home Warranty Insurance Companies: What You Need to Know

When you own a home, unexpected expenses can arise at any time. Home warranty insurance can help protect you from the cost of repairing or replacing major home systems and appliances. In this article, we’ll take a closer look at home warranty insurance companies and what you should consider before purchasing coverage.

What is Home Warranty Insurance?

Home warranty insurance, also known as a home service contract, is an agreement between a homeowner and a service provider that covers the repair or replacement of major home systems and appliances. This can include items such as plumbing, electrical, heating and cooling systems, and kitchen appliances.

Home warranty insurance is not the same as homeowners insurance, which typically covers damage from natural disasters, theft, or vandalism. Instead, home warranty insurance is designed to provide peace of mind for homeowners by covering the cost of unexpected repairs or replacements that can occur with age or wear and tear.

How Does Home Warranty Insurance Work?

When you purchase a home warranty insurance policy, you’ll pay an annual fee or monthly premium to the service provider. If a covered system or appliance fails or needs repair, you can contact the provider to schedule service.

The provider will then send a licensed and insured technician to your home to diagnose the problem and recommend a solution. If the problem is covered under your warranty, the provider will pay for the repair or replacement of the affected system or appliance.

What Should You Look for in a Home Warranty Insurance Company?

When considering a home warranty insurance policy, you’ll want to research several different providers and compare their coverage options, pricing, and customer reviews. Here are some key factors to consider:

Top Home Warranty Insurance Companies

Now that you know what to look for in a home warranty insurance provider, here are some of the top companies to consider:

1. American Home Shield

American Home Shield is one of the oldest and most established home warranty insurance companies, with over 45 years of experience. They offer customizable plans with a variety of coverage options, as well as a network of over 15,000 licensed and insured technicians.

American Home Shield has an A+ rating from the Better Business Bureau and a 4.4-star rating on Trustpilot.

2. Choice Home Warranty

Choice Home Warranty offers comprehensive coverage for major systems and appliances, including heating and cooling, plumbing, electrical, and kitchen appliances. They also offer a limited roof leak coverage option.

Choice Home Warranty has an A rating from the Better Business Bureau and a 4.2-star rating on Trustpilot.

3. Select Home Warranty

Select Home Warranty offers three different plans to choose from, as well as additional coverage options for items such as roof leaks and pool and spa equipment. They also offer a 30-day money-back guarantee.

Select Home Warranty has a B rating from the Better Business Bureau and a 4.1-star rating on Trustpilot.

Frequently Asked Questions

Do I Need Home Warranty Insurance?

Home warranty insurance can be a good option for homeowners who want to protect themselves from unexpected repair or replacement costs. However, it’s important to weigh the cost of the policy against the likelihood of needing repairs or replacements.

If you have older systems or appliances that are prone to breakdowns, or if you want to avoid large out-of-pocket expenses for repairs or replacements, home warranty insurance may be a good investment.

What Does Home Warranty Insurance Cover?

Home warranty insurance typically covers major systems and appliances, such as heating and cooling, plumbing, electrical, and kitchen appliances. Some providers may offer additional coverage options for items such as pool and spa equipment or roof leaks.

What Isn’t Covered Under Home Warranty Insurance?

Each home warranty insurance policy is different, so it’s important to read the policy carefully to understand what is excluded from coverage. Some common exclusions may include pre-existing conditions, cosmetic damage, and items that have not been properly maintained.

How Do I File a Claim with My Home Warranty Insurance Provider?

If you need to file a claim with your home warranty insurance provider, you’ll typically need to contact them by phone or online to request service. The provider will then send a licensed and insured technician to your home to diagnose the problem and recommend a solution.

If the problem is covered under your warranty, the provider will pay for the repair or replacement of the affected system or appliance.

How Long Does Home Warranty Insurance Coverage Last?

Home warranty insurance policies typically last for one year, although some providers may offer longer or shorter terms. You’ll need to renew your policy each year to continue coverage.

Conclusion

Home warranty insurance can provide valuable peace of mind for homeowners, protecting them from unexpected repair or replacement costs. When considering a home warranty insurance policy, be sure to compare multiple providers and carefully read the policy to understand what is covered and excluded.