When you own a home, you know that, at some point, appliances, systems, and other portions of the house will start to wear out and break down. Repairs and renovations are part of your responsibilities of maintaining a safe, comfortable place to live.

Unfortunately, some of this work can be costly and put stress on the budget for a home warranty.

When these issues arise, they may occur at inconvenient times when paying for repairs or replacing items is difficult or impossible. A home warranty can ease these burdens. This plan will cover many of the costs to take care of these needs and get your home in good working order. 


5 Tips To Select The Best Home Warranty Plan

5 Tips To Select The Best Home Warranty Plan

The home warranty plans can vary, so it’s important that you choose one that best meets your situation. Read an American Home Shield review to get an idea of what’s available. 

1. Understand How A Home Warranty Works 

The first step to choosing the proper home warranty is to know what the plan entails and how it can benefit you. First, realize that a home warranty is different from homeowner’s insurance. A warranty is not required, but insurance is. 

Insurance coverage will protect you in the wake of a perilous event such as a fire, severe wind, or theft. The policy will pay to replace or fix the affected portions of your home.

On the other hand, a home warranty will pay to repair or replace appliances and systems in your home that unexpectedly break down or that stop working suddenly due to defects or wear and tear. 

2. Different Type Of Home Warranty Policy

The policy covers large appliances such as refrigerators, dishwashers, stoves, ovens, water heaters, and washers and dryers. It applies to plumbing, HVAC, and electrical systems. It also covers the roof and items such as a swimming pool.

The warranty has a per-item cap. This is typically between $1,000 and $2,000. This means if it costs $5,000 to replace your broken air-conditioning system with a new one, you’ll be responsible for the remaining cost after the warranty pays its portion. 

The home warranty usually lasts a year, so you have to renew it. The plan is void if the item or system breaks down due to deliberate damage or your failure to maintain it properly. 

3. Evaluate Your Situation 

Take a look at your home and your living plans. If your home is newer than ten years old, you probably don’t need to buy a home warranty. The original builder’s warranty should still be valid with the home. However, if you have an older home, you can count on breakdowns and necessary renovations.

Another essential factor to keep in mind is how long you plan on staying in the home. If this is a long-term stay, you’re better off purchasing a home warranty because repairs will be necessary at some point soon. 

On the other hand, if you know, you’re only going to be in the home for a year or two — or less — it may not make sense to spend the money on a warranty. 

4. What About The Appliances? 

In addition to the age of the home, evaluate how old the appliances are in the house. You or the previous owner may have recently upgraded the significant appliances with an older home. 

These are much less likely to break down than items that are five or ten years old. Plus, a new appliance should still have the manufacturer’s home warranty to cover issues. 

However, if the appliances are showing their age and on the verge of coming to the end of their life, a warranty could be a good move. 

5. Compare Plans 

There are many options available when it comes to a home warranty. Do your research carefully as you look at warranty companies. Understand what your out-of-pocket costs will be and what limitations may exist. 

For example, you may pay only $500 a year for coverage, but the cap to fix each item may be lower. A larger cap may sound nice, but that will likely come with a more expensive warranty. Get quotes on multiple plans so that you can make the right choice.


If you have decided that you need a home warranty, review this list to ensure you get the most out of the coverage. You can then enjoy peace of mind and more financial security when things break down.

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