Is a Home Warranty Worth the Cost? The Pros and Cons Explained
What's a Home Warranty Used For
A home warranty is essentially a service contract that covers the repair or replacement of major home appliances and systems in the event of a breakdown. The coverage provided by a home warranty can vary depending on the provider and the plan selected, but in general, a home warranty can cover appliances such as refrigerators, ovens, stoves, and dishwashers, as well as systems like HVAC, plumbing, and electrical. Some plans may also cover additional items such as pool or spa equipment, septic systems, and even roofs.
When an appliance or system covered by a home warranty breaks down, the homeowner can contact the warranty provider to schedule a service call. The provider will then send a licensed and insured contractor to diagnose and repair the issue. If the contractor determines that the item cannot be repaired, they will replace it with a comparable model.
It’s important to note that a home warranty is not the same as homeowner’s insurance, which covers damage to the home due to events such as fire, theft, or natural disasters. Home warranties specifically cover the cost of repairing or replacing appliances and systems due to normal wear and tear. Homeowners should carefully review the terms and conditions of a home warranty plan before purchasing to ensure that it provides the coverage they need at a price they can afford.
Home Warranty Companies in Kalamazoo MI
Home warranties are becoming an increasingly popular choice for homeowners who want to protect their major appliances and systems in case of a breakdown. With so many companies offering home warranty plans, it can be difficult to know where to start. In this list, we’ll take a closer look at some of the top home warranty companies
- American Home Shield
- Choice Home Warranty
- First American Home Warranty
- Total Home Protection
- America’s Preferred Home Warranty
Each of these companies offer home warranty plans that cover a variety of appliances and systems in the home. Some of the items that may be covered include:
- HVAC systems
- Electrical systems
- Plumbing systems
- Pool or spa equipment
- Septic systems
When an item covered by the home warranty breaks down, homeowners can contact the warranty provider to schedule a service call. A licensed and insured contractor will then diagnose and repair the issue, or replace the item if it cannot be repaired.
It’s important to note that home warranty plans can vary widely in terms of coverage and cost, so homeowners should carefully review the terms and conditions of each plan before selecting one. By choosing a reputable home warranty company and carefully reviewing the plan options, homeowners can ensure that they’re getting the coverage they need at a price they can afford.
What to Know About Repairs with Your Home Warranty
One thing that homeowners should be aware of when considering a home warranty is that the providers often try to do repairs as cheaply as possible. This is because home warranty companies are businesses, and their goal is to maximize profits. As a result, they may try to avoid replacing appliances or systems unless there is something seriously wrong with them that makes them completely inoperable.
Instead, home warranty companies typically send out lower-level repair companies to complete repairs. These companies may not have the same level of experience or expertise as higher-end contractors, and they may be more likely to patch up a problem rather than fix it completely. While some repairs may be done well, others may only be a temporary fix and could lead to bigger problems down the line.
Another issue with home warranty providers is that homeowners often have no choice over which company is sent out to complete the repairs. While some companies may be reputable and trustworthy, others may have poor customer service or may not do the job correctly. Homeowners may end up having to deal with subpar repairs and could even end up paying out-of-pocket to fix problems that the home warranty company should have covered.
It’s also important to note that home warranty providers often have exclusions and limitations in their contracts. These may include specific appliances or systems that are not covered, or limits on the amount that the company will pay out for repairs or replacements. Homeowners should carefully review the terms and conditions of their home warranty plan to ensure that they understand what is covered and what is not.
Despite these potential drawbacks, home warranties can still be a good investment for homeowners who want peace of mind when it comes to their appliances and systems. By choosing a reputable provider and carefully reviewing the plan options, homeowners can increase the chances of getting quality repairs done at a fair price. It’s also a good idea to research and read reviews of different companies before making a decision, and to communicate with the provider if any issues arise during the repair process.