Are Home Warranties Worth It?

Are home warranties worth it?

A home warranty is a service contract designed to cover the repair or replacement costs of major home systems and appliances that break down due to normal wear and tear. It is different from homeowner's insurance, which typically covers damages caused by external factors like fire, theft, or natural disasters. Home warranties typically cover essential systems, such as HVAC (heating, ventilation, and air conditioning), plumbing, electrical systems, water heaters, and major kitchen appliances (like refrigerators, stoves, and dishwashers). Complete Home Warranty also offers additional coverage for a lot of other appliances in your home. (View the full list here: https://www.completehomewarranty.com/warranty-plans/) So now we consider the answer to the main question: are home warranties worth it?

Pros of Home Warranties

Home warranties allow homeowners the ability to rest easy knowing that if something goes wrong with one or more of your appliances, you won’t be solely responsible for the entire cost up-front, as you would if you were going it alone. Complete Home Warranty allows you to use who you are comfortable with and helps offset the cost of the work, if it needs to be done, with a reasonable monthly payment you are comfortable with.

Another benefit of home warranties with Complete Protection is the ease of use. If something goes wrong, all you have to do is call CP and a live person will walk you through the process. If you would rather call your go-to  instead, that is an option as well! Get the work done the way you want to and then talk to CP about the financial reimbursement or handling.

While there is a monthly cost associated with a home warranty, it becomes well worth it if your entire HVAC system goes array and you aren’t in a spot financially to eat that cost. While the amount is determined by CP and the plans you are enrolled in, it can be as little or as much as you want to spend each month. It is up to you! There is no cookie-cutter plan with CP. You can customize your plan to cover the items you need instead of being forced into a plan that doesn’t apply to you.

Cons of Home Warranties

When you are looking into enrolling in a home warranty program, make sure you analyze whether the annual cost justifies potential savings. If your home and its appliances are getting to the age where things could go wrong, the cost could be very beneficial to your family. Ultimately, it’s up to you! You can spend as little or as much as you would like.

When looking at other warranty companies, make sure you know what the coverage limitations are up-front. The more you know, the better you will understand what you are paying for and won’t be surprised when and if something happens.

Another thing to carefully consider with home warranties is who they use and allow you to use when service and work needs to be done. CP prides itself with the option to use your own technician you are comfortable with, not making you choose from a list of providers given to you. We also partner with companies that also hold themselves to a higher standard and do great work. We are always willing to provide names of trusted companies in our network.

When evaluating whether a home warranty is right for you, several key factors should be considered:

  1. Coverage Details: Review what exactly the home warranty covers. Check which systems (HVAC, plumbing, electrical) and appliances (refrigerator, stove, washer/dryer) are included. Understand any limitations or exclusions, such as pre-existing conditions or items not properly maintained.
  2. Cost: Compare the annual premium and service call fee (deductible) across different warranty providers. Consider whether the cost justifies the potential savings from covered repairs. Some providers offer tiered plans with varying levels of coverage and costs.
  3. Provider Reputation: Research the reputation and reliability of the home warranty company. Look for customer reviews, ratings from consumer protection agencies like the Better Business Bureau, and testimonials from other homeowners.
  4. Contract Terms: Read the fine print of the warranty contract carefully. Understand the duration of coverage (typically one year), renewal terms, cancellation policy, and any conditions for coverage activation (e.g., waiting periods).
  5. Service Network: Inquire about the network of service providers the warranty company uses. Ensure they have qualified technicians and contractors in your area who can promptly respond to repair requests.
  6. Claim Process: Understand how to file a claim and the timeline for service. Some warranties have a 24/7 hotline for emergencies, while others may require claims during business hours.
  7. Coverage Limits and Caps: Check for any limits on the maximum amount the warranty will pay per repair or per year. Understand if there are caps on specific items or types of repairs.
  8. Additional Benefits: Some home warranties offer additional perks, such as discounts on appliance purchases or free routine maintenance services. Assess if these extras add value to the overall package.
  9. Home and Appliance Age: Consider the age and condition of your home's systems and appliances. Newer items may still be covered under manufacturer warranties, while older systems might benefit more from a comprehensive home warranty.
  10. Personal Financial Situation: Evaluate your ability to cover unexpected repair costs without a warranty. Determine if the peace of mind and financial predictability provided by a home warranty align with your budget and risk tolerance.

By carefully evaluating these factors, you can make an informed decision about whether a home warranty is a worthwhile investment for protecting your home's systems and appliances. Are home warranties worth it? We certainly think so! If you're not ready to pull the trigger just yet, check out our article comparing repairs you may be able to handle yourself versus ones to save for the professionals!