With regular use, home systems and appliances naturally face wear and tear and require timely repairs. If one tries to pay for such repairs out-of-pocket each time, it can be a costly affair. As a result, many people opt for home warranties provided by trusted companies. These warranties are annual service contracts covering repairs or replacements of designated home appliances and systems. To make an informed decision, evaluate these policies’ various features, plans, and limitations.

How do home warranties work?
Home warranties are different from home insurance. The latter protects the policyholder’s home financially against any damages due to fire, theft, or other accidents. Home warranties, on the other hand, provide repairs for a discounted price to the users and usually need to be renewed every year. The contract terms of a home warranty may vary from plan to plan. One can opt to cover a wider range of products by paying a higher price.

Having said that, one does not need to own a home to get a home warranty. Those with rented places can also opt for it. One needs to pay an annual or monthly fee to buy a warranty. If any of the systems or appliances covered malfunction, one can get in touch with the company’s customer service by phone or online. The firm sends a professional who inspects and approves the issue if it fits into one’s warranty terms. The company then sends a technician to perform the repairs. If one’s repairs or replacement exceed the warranty amount, one needs to pay the difference.

What do home warranties cover?
There’s a wide variety of home warranties available in the market. Some companies offer appliance-only or systems-only warranties, while some companies offer a blend of both. Usually, the systems include heating, plumbing, electrical, and ductwork. In appliances, most warranties cover washers, refrigerators, dryers, dishwashers, and cooktops. Air conditioning, pool or spa equipment, pumps, garage door opener, and septic tanks may be optional in most cases and may require extra coverage.

Home warranties limitations
Most home warranties exclude issues with the home foundation, roof, walls, flooring, paint, or other structural issues with one’s home. The limited coverage of most basic plans forces one to buy add-on services. Another factor is that most warranties do not include service fees, which the homeowner has to pay separately to the company after each service call. Depending on the plan and provider, this service fee may range from $50 to $125 or more.

Home warranties: plans and companies to consider
Here are some home warranty companies that one can consider:

Liberty Home Guard
The Brooklyn-based company Liberty Home Guard, with its licensed contractor team, primarily offers three basic plans starting at $58.33 per month or $699.99 yearly. These plans include systems-only, appliances-only, and a combination of the two. The combination plan called ‘Total Home Guard’ costs about $66.66 monthly. The company also provides pest and termite control, roof leakage, and other add-on services for an additional cost.

Home Warranty of America
Home Warranty of America is another company that operates nationwide and covers most of the necessary repairs with a 30-day money-back guarantee. They have two available plans: a basic plan that covers appliances and systems, and a premium plan that includes AC units. One can also add on pools if needed. The company’s Premium plan costs about $46.08 monthly, while their Premium Plus plan costs about $59.92 per month. These prices, however, differ depending on one’s state and home type.

AFC Home Club
With monthly plans starting at around $69, AFC Home Club gives the users a guarantee of labor and parts and the choice to select their preferred technician. The company’s service fees may go up to $125, but one can choose to lower their monthly installment by opting for a higher service fee.