How do I Choose the Best Home Warranty Plan?

Autumn Rivers

A home warranty plan exists to save you money when it comes to repairing or replacing items within your home, such as appliances. Choosing a plan that covers more than you need may result in you paying too much for the plan, while getting a plan with too little coverage may leave you paying for most of your home repairs out of pocket. One factor to consider when choosing home warranty coverage is whether your appliances are likely to need repairs anytime soon. You should also consider whether all of your appliances need to be covered, or just the ones you use often. Finally, consider whether it is worth it to have extended coverage, as some companies allow you to add your computer and printer to the plan.

Some home warranties include microwaves.
Some home warranties include microwaves.

Most people moving into a brand new house do not typically need a separate home warranty plan because most appliances should already be covered by the home's own warranty. The majority of new home warranties cover the home and its major systems for one to two years, though some areas of the home may be covered for longer. For example, the drywall, doors, and heating and cooling system are usually covered for the first year or so, while the concrete for the driveway may be covered for ten years. Of course, new home warranties do not usually cover smaller items, such as most appliances, especially if they did not come with the house. For this reason, if you have a new home, you should find out what the original warranty covers to ensure that you do not pay for duplicate coverage.

Some home warranty companies offer coverage for your desktop computer.
Some home warranty companies offer coverage for your desktop computer.

Once you have decided that you indeed need a home warranty plan, consider the appliances that you want covered. Most companies have various plans available, from basics plans that only cover the largest appliances, to all-inclusive coverage that ensures that every appliance in your home will be repaired or replaced cheaply. If you are looking to save money on a home warranty plan, think about getting coverage for only the appliances that get the most use, as these are likely to become damaged first. For example, basic plans frequently cover the heating and cooling system, plumbing, and water heater, as well as necessary appliances like the refrigerator, washer, dryer, and dishwasher. If you have more money to spend on the premium, you can consider a more inclusive plan that covers items like the water softener, built-in microwave, fire alarm, ceiling fans, and garbage disposal.

Some companies offer a home warranty plan that extends even to items that are not attached to the home. For example, you can get coverage for your desktop computer, laptop, printer, fax machine, or other expensive items that may need to be repaired. If it is particularly important to you to have these in working order at all times, it may be a good idea to cover them with a home warranty plan.

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