At the outset of our research, we assumed that home warranties were similar to auto insurance — everyone should have coverage, and it can really be worthwhile to pay for the most coverage you can fit into your budget. However, after researching the industry, we made two important discoveries. The first is that the home warranty industry doesn’t have a stellar reputation, and the second is that, when doing the math, a home warranty may not actually be the right choice for everyone. Gregg Cantor is the fourth-generation owner/CEO of Murray Lampert Design, Build, Remodel; Vice Chairman of the Board of BBB San Diego for 20 years; and co-host of The Home Pro Show. When reviewing a home warranty coverage plan, sometimes you have to account for resulting fallout work. For example, cabinet modifications when replacing built-in appliances due to changes in size/configuration, or concrete work covering an in-ground pipe. With the added electrical components to newer appliances, especially Energy Star-efficient appliances, it’s made it more difficult to repair if you are not a trained and certified factory repair specialist.

Attempts on your own may void the appliance/system warranty. If you’re buying a new home, ask the selling realtor to select your own plan for them to purchase. If the home is already covered by a plan, ask the existing provider for a list of contractors that would be servicing your ZIP code and make sure they are licensed and bonded according to state laws.window ac unit diagram After reading hundreds of online reviews from happy and unhappy customers, we found that misunderstandings about what home warranties actually cover were at the heart of many customer complaints. ac dc power supply design projectSome homeowners seemed to have the impression that a home warranty was a fast-pass to all-new appliances, which is absolutely not the case.3 ton heat and air unit prices

To be fair, there is a lot of room for improvement in the home warranty industry when it comes to transparency. After immersing ourselves in home warranty research for several weeks, it was easy to see why the casual consumer might think they’re getting more coverage than they actually are: Most contracts are really tough to digest and critical contract details are buried deep in the fine print. The most satisfied home warranty customers were the ones who had appropriate expectations about what their home warranties actually covered. That means you’ll have to read all the fine print and ask a lot of questions before you sign a contract. Common customer complaints about their home warranties: During our research, it became clear that a home warranty can be an excellent option for certain types of homeowners. It also became clear that there are instances where a home warranty may not be the best option. When a home warranty is a good fit: When a home warranty may not be the best option:

For many homeowners, the decision to purchase a home warranty is a no-brainer. The peace of mind that comes with being protected against unexpected expenses is well worth the monthly or annual premium. But unless you’re willing to break out a spreadsheet and conduct some financial analysis, deciding whether or not a home warranty is a wise financial decision can be a more challenging matter. Each appliance and system has its own life expectancy and costs associated with repair or replacement. We developed a tool to help you visualize the replacement costs associated with the most common appliances and systems. One question homeowners often have is whether or not their existing coverage, or the coverage that came with their individual appliances, overlaps with their home warranty. Gaps in coverage can end up being extremely costly — whereas paying for too much coverage is a waste of money, as well. Home insurance, which a lot of homeowners have, covers your house itself against natural disasters, thefts, or other accidents that could cause damage to the structure or the interior.

And while it might help you buy a new television if yours is stolen in a break-in, it doesn’t cover repairs to appliances, and therefore, doesn’t offer much in the way of overlap. It’s a good idea to have a home insurance policy even if you don’t get a home warranty to cover your individual appliances. A home builders warranty, however, does cover many of the same things as a home warranty. These warranties usually come with newly constructed homes, and exist to ensure that consumers aren’t getting a raw deal when purchasing a new house. According to the FTC, new homes typically come with warranties that “generally offer limited coverage on workmanship and materials relating to various components of the home, such as windows; heating, ventilation, and air conditioning (HVAC); and electrical systems for specific periods.” They do not cover appliance repairs, though — but since all of the appliances will likely be brand-new and covered under the manufacturers warranty, an additional home warranty probably isn’t a good fit.

If someone just bought a brand-new home with all-new appliances and systems, they might not need a home warranty — if anything does break down, it should be covered under a builders warranty. In a new home, it’s possible that the appliances, which are most likely also new, are still covered by their manufacturers warranty. In this case, you may not need a home warranty at all, because your appliances and your home are covered. If they aren’t already covered, even a basic home warranty will cover most appliances. The best way to decide which coverage you need is to carefully read any warranties that came with your house or your appliances to determine exactly what is covered. Then, look for gaps in coverage and establish how best to fill them. The Home Service Club America's First Choice Home Club First American Home Buyers Protection We’ve been digging deep into home warranties for several years now, and we’ve started publishing additional reviews.

However, we haven’t finished updating them to be consistent with our latest round of research. Be on the lookout for updates in the upcoming weeks. American Home Shield Review Choice Home Warranty Review Read a few sample contracts: It’s tempting to skim through lengthy service agreements, but when it comes to home warranties, the best way to ensure you don’t get stuck with an unexpected bill is by taking the time to read the fine print of your contract. Reading through a few sample contracts (The Home Service Club, American Residential Warranty, and American Home Shield) can also help you get more comfortable with a purchase before you commit to a provider. Conduct a home inventory: Finding the best home warranty requires doing the math on what you need and what you can afford. Conduct an inventory of your own appliances and major systems, calculate approximate repair and replacement costs, and determine if a home warranty is right for you.Attempting to repair certain appliances can actually void your home warranty, but regular maintenance won’t.