A home warranty is a service contract that takes care of the cost of home repairs and replacements for systems that have failed due to factors such as tearing or wear. Policyholders will be treated with discounts on household appliances and specific systems. The customer has to pay monthly or yearly premiums. Home insurance gives homeowners peace of mind. At the same time, it reassures buyers and sellers during real estate transactions.
Features of a home warranty, clients should base their decisions on low premiums and service fees, high payment limits, and an easy claim process. As well as a wide range of services covering the equipment and systems required by customers.
List of contents
TotalProtect Home Warranty : The best average plan cost
Average Annual Cost: $423.40
Service Fees: $75 – $125
Response Time: 2 – 24 hours
Overview
TotalProtect is a long-established company serving many states. Now part of Cinch Home Services, the price of the service is very low compared to other companies. Customers can contact us 24 hours a day. The staff responded quickly and free of charge when canceling the service.
TotalProtect is one of the oldest home warranty businesses we researched, and their experience shows in their emphasis on delivering the coverage, alternatives, pricing, and features that potential consumers value the most. Unfortunately, their average customer rating is extremely poor, meaning that their guarantees appear to work better on paper than in practice.
Why We Selected It
TotalProtect is a good option for the most affordable typical plan cost. In addition to the District of Columbia, the firm provides service and coverage in all 50 states for an average yearly premium of $423. Despite its high overall rating, TotalProtect has a lower Better Business Bureau customer satisfaction rating than the majority of the businesses we looked at. Specifically, the fundamental strategy TotalProtect may be the greatest option because it is the most important factor.
Pros
✔ Nationwide protection
✔ $423 on average per year for a plan
✔ Guaranteed service for six months
✔ Quick response times for a claim
Cons
✘ Service fees are relatively high
American Residential Warranty : Best for overall
Average Annual Cost: $554.88
Service Fees: $55 – $75
Response Time: 24 – 48 hours
Overview
American Residential Warranty was founded in 2009 in Boca Raton, Florida, and now operates in over 50 states. The company collaborates with some of the country’s major corporations, including AIG, The Amynta Group, Lowe’s, GE Appliances, Asurion, and ADT.
Most homeowners will benefit from the American Residential Warranty. There are six standard plans, and consumers can tailor the service to their exact requirements. The monthly price covers the cost of most common home systems, whether they are repaired or replaced.
American Residential Warranty has an A+ rating with the Better Business Bureau and a high level of customer satisfaction.
Why We Selected It
Customers should choose American Residential Warranty because of its clear pricing information, variety of plans suitable for many groups of customers, fast service, easy-to-use website, and 24/7 support staff. Earned an A+ rating with the Better Business Bureau, making American Residential Warranty a top choice for customers who want a home insurance company.
Pros
✔ Offers electronics coverage that is optional
✔ You have a choice of a service provider
✔ Can create a personalized plan with extra coverage choices
Cons
✘ There may be exclusions for older appliances
✘ Low annual restrictions for various systems and appliances
First Premier Home Warranty : Best for claim response time
Average Annual Cost: $424
Service Fees: $60 – $75
Response Time: 0 hours
Overview
First Premier Home Warranty, founded in 1989, offers home warranty coverage in all 48 states. The company is proud of its technician screening process, which is intended to thoroughly investigate a contractor’s portfolio and reputation before hiring them. First Premier is based in New York City.
First Premier Home Warranty offers great value home warranty plans with low premiums and extensive coverage. Except for CA and IA, the company operates in all 50 states, and it responded quickly to complaints during our study.
On the other side of the argument, the company does not provide particular information to its clients; instead, you must contact them for the price because their pricing is ambiguous. Furthermore, there aren’t many online business assessments, and we couldn’t receive an example contract from them.
Why We Selected It
First Premier Home Warranty has the best claim response time in the industry, with a response time of 20 minutes. Other providers can take up to 72 hours, but First Premier has a low-cost plan. Reasonable service fees except for California and Iowa where the firm sells coverage in every state. However, there is no Better Business Bureau rating or certification, so the company’s ranking is not very good.
Pros
✔ All states except CA and IA are covered.
✔ A competitive payout cap of $15,000 per item per year is in place.
✔ Response time to claims is extremely fast – within 20 minutes.
✔ Plans that are very affordable
Cons
✘ C+ rating from the Better Business Bureau
Liberty Home Guard LLC : Best for customer satisfaction
Average Annual Cost: $587.49
Service Fees: $80 – $125
Response Time: 24 – 48 hours
Overview
Liberty Home Guard was founded in 2017 and has grown rapidly to cover most of the United States. The company provides home warranty plans at prices that are comparable to many of its competitors, and the response time to claims is comparable to that of other home insurers in our analysis
Liberty Home Guard offers a standard home warranty with reasonable premiums and extensive coverage. The company operates in every state except WI and WA, and provides a wealth of information to prospective consumers. Liberty Home Guard is a common home insurer in many ways. Plans, rates, exclusions, and coverage are all industry standards.
The organization is distinguished by its extraordinarily high customer satisfaction scores. This implies that the majority of Liberty Home Guard clients were satisfied with their service, with reaction times and their web portal gaining special attention.
Why We Selected It
Liberty Home Guard Home Warranty is the greatest pick for customer satisfaction, with an average Better Business Bureau customer review rating
of 4.63 based on more than 1,200 verified reviews. This rating demonstrates a strong tendency to provide excellent service to their clients and is by far the best customer satisfaction rating of any business we investigated. Furthermore, Liberty has a very user-friendly website, transparent pricing, rapid live-chat customer assistance, discounts, and possible add-ons (including coverage for pro-series appliances). The Better Business Bureau has certified and rated the company, which provides insurance in all states except Wisconsin and Washington, with an A grade.
Pros
✔ Available in 48 states and also Washington, D.C.
✔ High levels of consumer satisfaction
✔ Processing claims rather quickly (within 48 hours)
✔ up to $100,000 in same-day transactions
Cons
✘ There are no cash deposits accepted
America’s Preferred Home Warranty : Best low service fee
Average Annual Cost: $517
Service Fees: $50 – $100
Response Time: 12-24 hours
Overview
APHW was founded in 1999 and is based in Jackson, Michigan. “Every member of our workforce shares a passion for the Christian mission, values, and vision that help make APHW an industry leader,” the company says.
America’s Preferred Home Warranty offers affordable home warranty plans. APHW offers a number of plans and coverage options, as well as the possibility for customers to choose their own licensed repair person.
The company’s strong customer satisfaction ratings truly set APHW apart from its competitors. When compared to other home warranty providers, which as a class tend to receive negative ratings, it has comparatively positive reviews.
Why We Selected It
Because of its industry-low $50 service cost (you may alternatively choose a service fee of $100 or $125), America’s Preferred Home Warranty wins the top spot in our Best for Low Service Cost category. The monthly cost of the plan increases as the service charge increases, allowing you to adjust it to your specific needs. The company has an A+ rating with the Better Business Bureau.
Pros
✔ Pricing remains competitive
✔ The ability to select your own licensed repairman
✔ Outstanding levels of client satisfaction
Cons
✘ Limited plan options
Conclusion
However, these home warranty companies are only Finxpd’s recommendations. There are several aspects to consider when evaluating a home warranty company and its coverages. To assist in your decision process, our methodology for reviewing home warranties includes a quantified scoring system. Finxpd gathered significant data points from various home warranty providers to inform the essential elements to clients. We used this information to evaluate each provider’s price, availability, coverage options, and other features in order to offer unbiased, complete reviews that help our users make the best pick for their requirements.
FAQ
A home warranty is a service contract that covers the repair or replacement of key home equipment and systems, including HVAC, plumbing, electrical, and kitchen appliances. When a covered item fails due to normal wear and tear, the homeowner can file a claim with the warranty provider, who will send a competent service professional to diagnose and fix the problem. For each service call, the homeowner pays a service cost, also known as a trade call fee, which can range from $50 to $125, depending on the provider and plan.
In most cases, pre-existing conditions are not covered by home warranty companies. Home warranties typically cover only issues that arise after the coverage begins and are not related to pre-existing problems. Pre-existing conditions are generally considered to be any issues or defects that existed before the start of the home warranty contract. It’s essential to review the specific terms and conditions of your home warranty plan to understand what is considered a pre-existing condition and what is covered.
A home warranty and homeowner’s insurance are two distinct types of coverage that serve different purposes:
Home Warranty: A home warranty covers the repair or replacement of home systems and appliances due to normal wear and tear. It provides protection against mechanical failures or breakdowns that are not typically covered by homeowners’ insurance. Home warranties are optional and can be purchased separately.
Homeowner’s Insurance: Homeowner’s insurance, on the other hand, protects against unforeseen events such as fire, theft, vandalism, or natural disasters that may cause damage to the structure of the home or personal belongings. It also provides liability coverage in case someone is injured on the property. Homeowner’s insurance is typically required by mortgage lenders and is part of the overall cost of owning a home.
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Read more: Popular Home Warranties
Source: Investopedia