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4 key pointers to check when purchasing a plan from a home warranty company

February 14, 2022

What do you do when any of your devices or car breaks down? You have warranties to cover that. But do you know that you can cover your house with a home warranty plan?

You need a home warranty plan for the crucial home appliances and systems that you regularly use and are likely to break down due to age. A decent plan from a well-known home warranty company can actually keep you protected from paying out-of-pocket expenses related to your appliances or systems repairing or replacement.

Home warranty plan covers your appliances like refrigerator, cooking top, microwave, dishwasher, and systems like plumbing, HVAC, electrical, etc.

If it is an older home, a home warranty policy can increase the selling potential of your home. In the US market, home buyers always prefer to buy a home with a warranty policy as it gives them the assurance that if anything goes out with their appliances or systems, the home warranty company will cover it.

If you are considering buying a plan from a home warranty company, there are a few things that you should consider-


Cost is the most important thing that should come to your mind. First, you should make a list of items that you want to cover with the home protection plan. In this list, you should include your important home appliances like refrigerator, microwave, water heater dishwasher, washing machine, and systems such as plumbing, electrical, HVAC.

To cut short, you should only list down the items that are approaching their lifespan and are likely to go down soon.

Items that come with costly repairing or replacement bills should go to your list.

Limits and prohibition:

Almost every home warranty company has its exclusions and conditions. Remember one thing there are specific parts and components that your home warranty company may not provide coverage for.

Home warranty companies have a state limit for your appliances and systems repairing or replacement. If the repairing or replacement cost goes beyond that particular limit, the additional amount you may have to pay from your pocket. It is really important to go through your plan’s contract carefully so that you can know about all the exclusions and limits. Knowing all the limits and prohibitions, you can make more informed decisions about buying a home warranty plan.


Start annually and you have to pay it upfront but there are only a few companies that allow you to do the monthly payment.

Usually, standard home warranty plans range between $300 to $600. You can get optional coverage for your swimming pool, spa, and automatic garage door by paying an extra amount.

Online reviews and customer ratings:

When choosing a home warranty company, you should always choose a company that has a considerable number of positive customer ratings and online reviews.

It is really important to do research before purchasing a plan from a home warranty company or else you may experience problems in the future.

The right home warranty policy should be able to cater to your requirements and that’s why we have mentioned this key pointer that you should consider.