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Confused Between Home Warranty and Home Insurance ?

by YourDailyHunt.com
Confused Between Home Warranty and Home Insurance

What is Home Warranty?

A home warranty is a contract for a typical one-year term that provides homeowner discounted repair and replacement services for home’s major systems and appliances. Don’t get carried away by the term warranty as it doesn’t mean a legal warranty. In US home warranty is not a warranty but a home service contract. It covers the repair and/or replacement costs of all major home appliances, such as heating, cooling, and all other miscellaneous components of a home.

Items Covered Under Home warranty and excluded Items

Most US companies cover all basic need like plumbing, heating systems, electrical, refrigerators, Microwave ovens and dishwashers. Some companies also charge additional coverage for appliances, like clothes washers and clothes dryers. Basically, it covers maintenance and replacement (if required) for all major items which are properly taken care by the house owner. It doesn’t cover the items which has been intentionally damaged or misused.

Common Controversy with Home Warranty

Below are few common complaints which homeowners do have against home warranty company:

  • Home warranty companies denied the claim because of a “pre-existing problem”.
  • Home warranty companies always do repair and maintenance for the appliance even when it is required to be replaced.

Home Warranty vs Home Insurance

Both protect us in some way and save our wallet from unwanted massive expenses but there is significant difference between them. As we already mentioned home warranty covers our home’s internal components- by Repair and replacement, while on the other side home insurance covers damage to our personal property and the structural integrity which are caused by major events including natural disasters like floods and storms or against burglary and vandalism.

Benefits of Home warranty

Home warranty is a protection plan or safety against expensive and unforeseen repairs which can arrive anytime even if you buy a new house. It provides piece of mind to the House owner as it gives a reassurance of safety and cover up if anything goes wrong in any of the household components. Home warranty also act as a buffer for those owners who don’t have any emergency funds. It’s also a gift for those who don’t want to chase down a contractor when any problem arises.

Top Home Warranty Companies of 2022

1. American Home Shield –

American Home Shield (AHS) was founded in 1971 and is also the first home warranty provider in the U.S. It’s one of the Top-rated US Home warranty Company. It’s home warranty plans starts from $50. It has more than 1.8M customers across US. More than 21 appliances major components are covered by this company.

American Home Shield (AHS) offers basically 3 tiers of coverage to customize your plan. For instance, you are having the options for a systems only plan or coverage that also includes appliances and this gives a great user experience.

ShiedPlatinum – Offers coverage for most major systems as well as appliances, plus coverage for things like even like roof leaks. You can also choose to pay for optional limited roof, pool or spas ,well pump, septic systems  and also covers guest unit.

Price for this plan varies from $540 to $900 per annum, which seems to be slightly higher compared to other companies..

In case of any concerns related to pricing they even offer customized plans and you are having the options to set the amount to $75, $100, or $125 plus tax, and in return, your monthly premiums will either go up or down. More specifically, the higher your trade service fee, the lower would be the premiums which you need to pay.

2. HWA (Home Warranty of America)-

This company has more than 25 years of experience in serving this industry. They have more than 25000 technicians nationwide that are providing the repair and replacement services 24/7.

What do HWA Covers

Home Appliances

  • Refrigerator
  • Washer/Dryer
  • Dishwasher
  • And more!

Systems

  • AC and Heating Systems
  • Plumbing Systems
  • Garage Door Systems
  • And more!

HWA (Home Warranty of America) comes with 2 plans to capture large customer base . Premier plan covers basic coverage with no options for Air Conditioning system where as Premier Plus Plan provides the Premium coverage Including Air Conditioning system and costing around $60 per month.  

3. First American –

They provide 24/7 Service and have experienced technicians. This company also provides you the option to customize your plans. They claim of replacing the appliances which can’t be repaired. Below are few of the mentioned Pros and Cons for First American.

Pros:

  • Competitive pricing
  • Flat-rate service fee

Cons:

  • Limited customization for plans 
  • Customers cannot choose their own contractor
  • Not available nationwide

First American Home Warranty offers some a bit lower pricing compared to others and that can be a  great fit for homeowners who are  looking for a more affordable option.

Coming on to response time, First American indicates it’ll respond within 48 hours and that seems to be outstanding compared to many others. Its workmanship guarantee is 30 days

First American Home Warranty  even offers  some educational online resources (Blogs) to help getting homeowners educated  on taking care of their homes.

One of the demerit for First American doesn’t offers any  system specific plans. Although First American does offer some customization with add-on coverages, but again it doesn’t offer roof coverage and this already accommodated for many of the competitors. Major drawback is that First American also isn’t available in 15 states or Washington, D.C.

Warranty Plans  – First American Home

Like others First American Home Warranty offers two plans: Basic and Premier. The Basic plan mostly covers home appliances. The Premier plan includes everything the Basic plan covers in addition to the home’s main systems, ductwork, and central vacuums.

  • Both plans do have a short list of additional items available for coverage at an extra fee. These include additional refrigeration (for example a second refrigerator, free-standing freezer , wet bar fridge or stand-alone ice maker),  mini-tubs , central air conditioning and spa equipment, pre-season HVAC tune-ups, septic systems and pumping, as well as  well pumps.
  • Home warranties also provide coverage for kitchen appliances like washers and dryers, electrical, heating , plumbing and air conditioning systems.

4. ARW Home-

This company was recognized by the Forbes as Forbes Home ‘Best of 2022’ winner. They provide subscription-based protection plan.

Unlike other competitors ARW homes offers 4 plans to customer mentioned below :

Ultimate Electronics Protection ( Basic Plan)

Coverage Includes:

  •  Laptops
  •  Desktops
  •  Tablets
  •  LED/LCD TVs
  •  Flat Panel/Plasma TVs
  •  Printers
  •  Gaming Consoles

Kitchen Plus( Basic Plan)

Coverage Includes:

  •  Interior Electrical System
  •  Water Heater
  •  Range/Oven/Cooktop
  •  Kitchen Exhaust Fan
  •  Refrigerator
  •  Dishwasher
  •  Built-In Microwave
  •  Garbage Disposal

Platinum Premier ( Kitchen Plus Included)

Coverage Includes:

  • Central Air Conditioning
  •  Central Home Heating
  •  Plumbing System
  •  Plumbing Stoppages
  •  Garage Door Opener
  •  Humidifier
  •  Ductwork
  •  Ceiling Fans
  •  Refrigerator Ice Maker

4-in-1 Bundle

Ultimate Electronics Protection + Kitchen Plus + Platinum Premier +

  •  Washer/Dryer
  •  Deluxe Advantage 
  •  Water & Sewer Lines 

5. First Premier-

With more than 30 years of experience First Premier  are also the leading stake holder in this field.They provide dedicated customer complain representatives to the house owners. Their annual plans starts at $189. This company maintains a high renewal rate due to satisfied customers.

Like competitors First Premier  comes with 2 plans

Premier Plan

Covered :

  •  Plumbing System
  •  Plumbing Stopage
  •  Water Heater
  •  Whirlpool Bathtub
  •  Electrical System
  •  Oven/Range/Stove
  •  Cooktop
  •  Sump Pump
  •  Built-in Microwave
  •  Dishwasher
  •  Garbage Disposal
  •  Trash Compactor
  •  Ductwork
  •  Garage Door Opener
  •  Ceiling & Exhaust Fans

Not Covered

  •  A/C System (2 Units)
  •  Heating System (2 Units)
  •  Clothes Washer
  •  Refrigerator
  •  Clothes Dryer

Platinum Plan

Covered

  •  Plumbing System
  •  Plumbing Stopage
  •  Water Heater
  •  Whirlpool Bathtub
  •  Electrical System
  •  Oven/Range/Stove
  •  Cooktop
  •  Sump Pump
  •  Built-in Microwave
  •  Dishwasher
  •  Garbage Disposal
  •  Trash Compactor
  •  Ductwork
  •  Garage Door Opener
  •  Ceiling & Exhaust Fans
  •  A/C System (2 Units)
  •  Heating System (2 Units)
  •  Clothes Washer
  •  Refrigerator
  •  Clothes Dryer

6. Choice Home Warranty-

They ranked #1 in best home warranty companies in US for 2022. Mainly company offers two plans- a basic plan worth of $560 annually and a total coverage plan worth of $660 annually. The major difference between the two plans is the coverage of the items. Basic plan doesn’t cover AC, Refrigerator, Washer, and Dryer. This company is available 24/7 and have very fast response time up to 48 Hrs. It also offers a workmanship guarantee for 60 days and parts guarantee for 90 days.

The basic difference and comparison between the two plans is related to items covered. The basic plan that company offers do not cover your air conditioning system, refrigerator , washer and dryer, whereas the total plan do cover them all.. It also offers a workmanship guarantee for 60 days and parts guarantee for 90 days.

So, if you are looking for a home warranty you can explore any of above listed home warranty companies and buy the plan as per your requirement and Budget.

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