A home warranty is an optional contract between a homeowner and a home warranty company that provides a discounted repair and replacement service on a home’s major components, such as the furnace, HVAC, plumbing, and electrical systems. A home warranty may also cover major appliances, such as washers and dryers, refrigerators, and swimming pools.
Home warranties usually come up when Buying a Home, Sellers would offer to purchase on your behalf to give you peace of mind that any component of your home can be fixed at an affordable price.
A one year Home Warranty cost around $300-600 a year. It ranges from the Basic coverage and more comprehensive plans. Most Home Warranty in this price range can cover $20,000 worth of Home Components and Appliances.
Summary of home warranty costs:
- Minimum monthly cost: $20
- Maximum monthly cost: $115
- Average cost: $25–$50
- Average service fee: $75–$125
Benefits of Having a Home Warranty
Like every other warranty, a home warranty is supposed to protect Home Owners against expensive and unforeseen repair charges and provides you peace of mind. Having a home warranty is very handy for people who don’t have time to track time for contractors and repairmen when something broke down. It is also a necessity for homeowners who have an expensive taste in appliances
Is a home warranty worth the cost?
Personally, having a home warranty is worth the cost. Not only it does offer extensive protection and security to major home appliances, systems, but it also makes you save money in the longer run.
For Buyers, it gives reassurance if a major home system or components breaks down. For Sellers, it can help cover major repairs and replacement during the listing period and can be also used as a sweet deal for buyers to get that house locked in!
How to Choose the Best Home Warranty
Before jumping into getting a home warranty, make sure you do your research, read reviews from the consumer to compare the best home warranty providers out in the market.
Look for Google, Yelp and BBB ratings as well, ratings and complaints, customer satisfaction, coverage, exclusions, and home warranty features.
Consumer reviews tend to be subjective and raw, so its really helpful in making that right decision.
And lastly, Word of the mouth is much preferred. You can ask your closest friends, family, and neighbors about how much their Home Warranty costs and which provider they preferred and trust.
Home Warranty Providers 2020
I made a list of known Home Warranty Providers and their costs:
- Monthly premiums: $36–$44 per month
- Service fee: $85
- Plans: 2 plans + optional add-ons
- Monthly premiums: $36–$38 per month
- Service fee: $75
- Plans: 3 plans + optional add-ons
- Monthly premiums: $28–$43 per month
- Service fee: $75
- Plans: 2 plans + optional add-ons
- Monthly premiums: $34–$46 per month
- Service fee: $85
- Plans: 3 plans + optional add-ons
While not everyone will think a home warranty is worth it, it is a good idea for people who lean toward being better safe than sorry when buying a home. Consider the appliances you own and how reliable your plumbing is. Speak with your Real estate agent for advice, I will be happy to sit down and have a coffee while we narrow down choices for you and discuss which Home Warranty Cost suits you! Reach out!
