The cheapest home warranty plans are not always the best. This doesn’t mean there aren’t affordable options out there.
Looking for a home warranty plan those costs little but provides lots? A home warranty plan is a service contract that covers the cost of repairs and replacement of home systems and appliances when they break down over time from normal wear and tear. Often a home warranty is confused with homeowner’s insurance. Homeowner’s insurance covers your house when disaster hits. Most states require homeowners to purchase homeowners’ insurance but home warranties are optional. However, more homeowners are finding that having both a home warranty and homeowners’ insurance can offer peace of mind.
How does a home warranty work?
The way a home warranty works is that you pay a monthly or annual premium in exchange for coverage. Each time you need to file a claim for a repair, you are charged a flat service fee. After you file a claim, your home warranty company will arrange for a technician to come to your house to assess the repair needed and complete the necessary work. Not only does a home warranty cover the cost of repairs and replacements needed, your home warranty provider will do the leg work of arranging for a technician to complete the repair. This saves not only money but time as well.
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The cost of a home warranty plan
Your home appliances are worth well over $20,000 in total. It can cost a hefty price to repair and replace these valuable items. Paying a monthly premium for a home warranty allows you to budget and avoid the high costs of repairing or replacing an appliance when it breaks down. For example, replacing a furnace can cost around $3000. A home warranty would help shoulder this high cost.
As you begin your search for a cheap home warranty and compare home warranty quotes, consider the factors provided below when choosing the best plan for your home. You want the best protection for your home without breaking the bank. Remember, though, when searching for the cheapest home warranty plan, you are searching for the plan with the highest value and lowest cost. You can find affordable coverage without skimping on the quality.
What to consider when choosing the most affordable home warranty
1. Coverage
A home warranty requires a monthly premium and a flat service fee for every repair. The higher you pay for your premium, the less your service fee. Each home warranty provider offers different coverage. It’s important to know what each plan covers and to choose a plan that best fits the needs of your home. Sometimes a home warranty is also called a home appliance warranty, but this doesn’t capture the full extent of what a home warranty can cover. For example, to see what a home warranty can cover, here are Liberty Home Guard’s plans:
Make sure you check to see what add-ons each home warranty provider offers. You may have a pool or septic tank that needs coverage, and you will want to make sure your home warranty provider offers this as an add-on.
2. Cost
A home warranty’s monthly premium can cost anywhere from as cheap as $28 to as much as $200 dollars. Again, the price of this depends on the type of coverage you are getting. Of course, the more money you spend usually means the more coverage you will get, which could save you thousands of dollars in the end. It all depends on what you need covered.
Don’t be fooled by very cheap prices. This probably means you are getting poor service and not good coverage. Always read each plan carefully and even consult the provider before you sign off on a plan.
Tip: Below is a list of questions to consider when choosing the home warranty plan that’s right for you. This will enable you to factor in the cost of the plan best suited for your home’s needs:
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How many appliances and home systems need to be covered?
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What type of climate do you live in? This helps you determine the wear and tear your home systems and appliances will undergo. Harsh winters are hard on plumbing. Long summers mean it’s important to have your HVAC in good condition.
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How old are your home and home appliances? A home warranty is good for all homes -- new and old-- because it makes life easier, but an older home will certainly experience breakdowns and need major replacements sooner rather than later.
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What are each provider’s fee caps? Research the different fee caps of each home warranty provider and check with their customer support teams to see how flexible each provider is. Read the fine print of each plan before you sign up!
3. High quality workmanship
A home warranty is a home protection plan that should offer a peace of mind. That means when things in your home break down, you want them fixed properly. There are many home warranty providers out there, but not all of them will provide licensed technicians. You could end up with a shoddily fixed refrigerator only to break down in another two months because the workmanship is poor. When choosing a home warranty, make sure the provider offers licensed technicians in your area.
4. Customer Service
When researching the most affordable home warranty provider, don’t just focus on the cost. A crucial component of any home warranty is customer service. Many home warranty providers offer customer service 24/7, but some do not. If your water heater breaks down in the middle of the night in the dead of winter and you need to file a claim, you will most likely wish your home warranty service is available right when you need it.
5. Customer flexibility
Whether it’s called appliance warranty plans, home protection plans, or home warranty plans, do your research when choosing an affordable plan that works for your home. The different language that providers use to refer to their home warranty plans may be interchangeable, but the product is definitely not. Check to see not just the kinds of coverage you can get from a warranty provider, but other incentives the provider offers in addition. Below are some factors to consider when making the choice:
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Does it offer a workmanship guarantee?
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Do they provide licensed technicians
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How do you file a claim? Over the phone? Electronically? Both?
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What add-ons are available?
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What is the process of cancelling and adjusting warranty plans?
Owning a home is a big responsibility, but that doesn’t mean it shouldn’t be joyful. A home warranty can help by allowing you to plan and budget for home breakdowns that are bound to happen. But, choosing the right home warranty can feel overwhelming. It’s important to not fall for gimmicks and cheap prices.
The best way to learn more about a home warranty is to call the provider’s customer support team and ask questions. Read their website. Compare prices, compare coverage, and compare customer satisfaction reviews. A home warranty should provide you with comfort, not stress.
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