You just purchased your dream house along with the all the perfect décor that turns your dream house into your dream home. It's been a few months and everything is unpacked and placed in its designated spot within your new home. So you turn your attention to rebuilding your savings account since it was depleted from the biggest and most important purchase of your life. However, within a few months of living in your dream home, you experience a costly unexpected expense when your heater blows out during the winter.
With a new mortgage payment and a limited amount in savings, you're looking at numerous financial options on how to pay for this unexpected expense. Fortunately, you purchased a home protection plan that will cover this expense as well as any major systems and appliances that may need repair or replacement in your home.
Home warranties typically include coverage the following major appliances and systems:
Home warranties are offered to all homeowners whether they are new or existing. Typically, home warranty plans are offered to the home-buyer when they are purchasing a new home. However, if the buyer decides not to purchase home warranty insurance simultaneously with their home purchase, then they can secure a home protection plan at a later date. There is no time restriction as to when a homeowner can decide to purchase a warranty plan.
Typically, a home warranty costs a couple hundred dollars, which can be paid in a lump sum amount during the purchase of a new home. This lump sum payment would be collected at the time closing costs are due for the newly purchased home. However, the seller, real estate agent or a family member or friend can purchase home warranties on behalf of a home-buyer. If a home appliance insurance claim is filed then the homeowner may be responsible for paying a service fee or deductible that typically ranges from $50 to $100. Please note, home warranty companies have different contract agreements therefore, fee amounts may vary.
Filing a claim is a very simple process. Prior to filing your claim, review your insurance contract to verify the item that you need to repair or replace is covered under your plan. Once you verify this information, you'll complete the following steps:
As there are many providers to choose from that have a variety of plan options; the best home warranty companies depend on how they can meet the needs of your home. The best way to select the right home protection plan for you is by doing your research on what each company has to offer with their plans. For instance, if you have a home with older appliances then you may be interested in locating a plan that has home appliance insurance. Want to learn more before choosing? Here are some tips and tricks to get you up-to-date.
Convinced? Check out our expert written reviews for information on the top providers for home warranty. Once you've selected the plan that best fits your needs, you'll join the many homeowners that have peace of mind because they are protected by one of the top home warranty companies.
Choice Home Warranty is a budget-friendly option ideal for first-time homeowners. Choose between their customizable Basic Plan (12 items) and Total Plan (16 items) to receive up to $3,000 in coverage for each successful claim.
Jake Hill, CEO of DebtHammer, highlights that Choice Home Warranty is also "especially helpful for owners of older homes" since they don't "deny coverage based on the age of your home's systems or appliances."
Instead of varying their service fees, they only charge a flat $85 per claim. You also get your first month free if you're a new customer.
Why we chose Choice Home Warranty: A stand-out from other services, Choice Home Warranty responds swiftly to queries and claims, delivers reliable customer service, and has affordable annual premiums.
Our experience: We were impressed with Choice Home Warranty's fast turnaround time when submitting online and phone claims. The support specialists we worked with were knowledgeable and quickly provided helpful information.
Select Home Warranty provides competitively priced coverage for most major appliances and systems. Their premiums start at just $36/month, which is more affordable than other home warranty companies.
Jennifer Spinelli, real estate professional, investment advisor, and founder and CEO of Cash For Houses, calls Select Home Warranty "reliable and trustworthy." She adds that she no longer worries about "costly repairs or replacements due to breakdowns or malfunctions."
Three different plans are available and all of them include free roof leak coverage. However, Select Home Warranty's services aren't available in Nevada, Washington, or Wisconsin.
Why we chose Select Home Warranty: Their affordable premiums and minimal fees elevate them above their competitors. It's also convenient that they offer two months free with their annual plan.
Our experience: We were particularly impressed with Select Home Warranty's 24/7 friendly phone support and free roof leak coverage.
Operating since 1971, American Home Shield is the largest and most established company in the US home warranty market, with over two million members.
Tommy Gallagher, former investment banker and founder of Top Mobile Banks, was "impressed with the range of contractors they have available and the quality of service they provide."
Choose from their three customizable plans—ShieldSilver, ShieldGold, and ShieldPlatinum. The ShieldSilver plan only covers 14 major systems, while the ShieldGold plan covers 23.
For additional perks, ShieldPlatinum comes with complete system and appliance coverage. This includes cost-saving add-ons like free HVAC tune-ups, unlimited A/C refrigerant, coverage for rooks leaks and code violations, and higher payout caps for repairs and replacements.
Why we chose American Home Shield: They operate in 47 states and Washington DC, and you can customize your plan. American Home Shield automatically covers duplicate items, plus older items with rust or corrosion.
Our experience: We found American Home Shield to be an excellent option for anyone seeking highly customizable plans and access to an extensive network of contractors. We could easily find a plan that suited our needs.
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