How to Choose the Best Home Warranty Plan


Ensuring the longevity of home appliances and systems is a big step towards a peaceful life for any homeowner. While most home appliances come with a manufacturing warranty, some home appliances do not provide such facilities. Moreover, these warranties have specific periods that vary from three to five years. Once the warranty period ends, the owners have to bear the repair or reinstallation cost. For all these reasons, a home residential warranty proves to be the ultimate choice for homeowners in the USA.

A home warranty or residential warranty is a yearly plan that covers the repair or replacement of most home appliances. Today, there are plenty of choices while choosing a suitable home warranty company in the USA. However, the task of finding the best home warranty plan is not as easy as it may seem. There are multiple aspects of this service that the buyers should know. To help the buyers make the right decision, here are some crucial factors explained.

What is a Home Warranty?

A residential warranty or home warranty is a renewable home service contract that aims to cover the maintenance cost of most household systems or appliances. A home warranty service is not the same as a home insurance plan, which usually covers the losses and damages to an individual’s house. A home warranty plan can complement the residential insurance plan by covering items that the insurance does not. While most home warranty plans can be renewed yearly, a few plans follow a monthly or half-yearly renewal cycle. Depending upon the company and the plan, the terms and costs vary. Generally, a home warranty cost may vary between $350 and $600 each year.

Which Items are Covered?

A residential warranty covers many household items including home systems and appliances. Below is a list of household items that a home warranty may cover.

Home Systems: wiring, fuse boxes, outlets, heater, pipes, well, septic pump, A/C units, and heat pumps.

Appliances: washing machine, clothes dryer, refrigerator, oven, range, microwave.

Additional Coverage: computers, TVs, gaming systems, components of the heating, pumping, and filtration systems, well pump, septic pump, add-on houses, carriage houses, etc.

How to Choose the Best Home Warranty Plan?

When looking for a home residential warranty, every house owner has specific needs. Though the individual needs may vary, the process of choosing the best plan remains common to all. Firstly, it is essential to know which plan covers all or most items that the owner needs to secure. Also, from inquiring about the home warranty company’s reputation to checking the warranty costs, there are multiple steps that the person should acknowledge. A proper investigation and evaluation can help every buyer to make a wise decision.

Step 1: Research and Comparative Analysis

Research is a primary step where the buyer should explore multiple companies to check the service plans. Most home warranty companies have their official websites, where the buyer may find all the plans mentioned. If a friend or a realtor is recommending a particular company, it is essential to request a brief about the company and its services. The buyer can also do a Google search for home warranty companies that provide coverage in the locality.

Once the buyer has collected information about four to five companies, the next step is a comparative analysis of the plans and their costs. Another thing to consider is how the companies handle online complaints. Checking reviews from a reputable site is crucial as these websites verify the complaints and the companies to make sure the readers are getting legitimate information.

Step 2: Choosing the Best Company

Once the buyer has shortlisted all the companies and made a comparative analysis of their services, it is time to finalize the best home warranty company. The person should start by reading the contracts that the companies are offering. Reading the entire contract helps the buyer to understand the coverage, exclusions, and limits for the home’s systems and appliances.

After reading the contracts, the buyer should request a quote from each company and wait for their response. Here, the buyer should understand that the warranty costs vary depending upon the number of coverage that these plans include. Some home warranty plans may cost lesser than others because these have limited coverage. To ensure a complete home warranty, the buyer should always choose a plan that covers all or most of the items in the house.

Step 3: Choosing the Best Plan

The buyer may either choose a company first and then select the most suitable plan or vice versa. If the buyer selects a company first, it is essential to dig deep into the different plans it provides. Most reputed companies have à la carte options where the buyers can also add to their coverage like swimming pool coverage or an additional refrigerator. It is also essential to keep the budget in mind while buying a home residential warranty.

Step 4: Purchasing a Home Warranty

Some home warranty companies offer online purchase options so that the buyers can opt for the services from the comfort of home. The companies assign their agents to each buyer who takes care of further maintenance by representing from the company’s behalf. Before signing the contract, it is crucial to read the contract once again. While some companies have very rigid payment policies, some companies allow buyers to choose between their flexible yearly or monthly payment options.


A home warranty can provide complete peace of mind to the homeowners. One can get rid of the hassle of costly replacement, or sudden breakdowns when a home warranty plan is active. The process of choosing the best home residential warranty company can be simplified when a buyer follows the steps mentioned above. As the plans and charges vary from company to company, it is essential to research and make a comparative analysis of their services. Reading the contract, asking for a quote, and resolving all the queries are the vital aspects of purchasing a new home warranty.

Share this

Recent articles

More like this