Many homeowners have taken the smart step of securing a policy from one of today’s leading home warranty companies. There are many reasons to do so. The most commonly cited reasons for obtaining a home warranty include living in an older home or having older appliances, not having a fund set aside to cover costly repairs or the need to replace an HVAC system, and the convenience of knowing repairs will be handled by a qualified, competent contractor. What was your primary reason for purchasing a home warranty?

There are several home warranty companies that stand out in a somewhat crowded field. They have gained a solid reputation and earned the trust of their customers. These home warranty companies have achieved this in several ways. First, they offer affordable policies that are easy to understand – with no hidden details that come back to bite you. Secondly, they use only skilled, pre-screened contractors with proven ability to get jobs done right the first time. Thirdly, they are low-hassle when it comes to covering claims made by their customers. Which home warranty companies are the best? We hope you’ll contribute to the discussion!

While this isn’t meant to be an exhaustive list of the best home warranty companies, these are certainly among the highest-rated by consumers. While there are smaller regional companies, these are the ones that offer coverage in most or all of the United States. If we missed the company you use, be sure to let us know. Do you have a policy with any of these companies? If so, what has been your experience with them? We invite you to provide any feedback that might be helpful to others!

1. 2-10 Home Buyers Warranty: Nationwide.

2. Advantage Home Warranty: Nationwide.

3. American Home Shield: Nationwide.

4. American Residential Warranty: Available is all states except California, Idaho, Iowa and Virginia.

5. Buyers Protection Group: Nationwide.

6. Central Mass Home Warranty: Nationwide.

7. Choice Home Warranty: Nationwide.

8. Colonial Home Warranty: Nationwide.
Complete Appliance Protection: Available in all Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Idaho, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New Jersey, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Texas, Tennessee, West Virginia, Wyoming. In Canada: Alberta, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island.

9. Empire Home Warranty: Nationwide.

10. Fortress Home Warranty: Available in Coverage Area: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Dist of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

11. First American Home Warranty: Nationwide.

12. GE Home Warranty: Nationwide.

13. Hi Tech Home Warranty: Nationwide.

14. HMS Home Warranty: Nationwide.

15. HSA Home Warranty: Nationwide.

16. Home Warranty of America: Nationwide.

17. LandAmerica: Nationwide.

18. Liberty Home Protection: Nationwide.

19. Mutual Home Warranty: Nationwide.

20. National Home Protection: Nationwide.

21. Nationwide Home Warranty: Nationwide.

22. Old Republic Home Warranty: Nationwide.

23. Residential Protection: Nationwide.

24. Sensible Home Warranty: Nationwide.

25. Shield Star Home Warranty: Nationwide.

26. Structure Home Warranty: Nationwide.

27. Total Protect: Nationwide.

28. The Warranty Group: Nationwide.

Conclusion
This list covers most of today’s leading home warranty companies.  Let the rest of our readers know what your experience has been with your home warranty company. It’s always helpful for potential customers to learn from the experience of others.

We purchased our current home a little over a year ago and one of the perks to entice potential buyers was an included third party home warranty purchased by the seller. I have to admit, when buying an older home, it sure does ease your concerns about the home falling apart right after you close.

A home warranty plan is simply insurance you can buy against sudden and accidental breakdown. Typical coverage is for the mechanical systems of your home such as electrical, plumbing, furnace, and hot water heater. Our plan included a few extras such as our appliances, central air, pool pump and filter. Our plan would cover the cost of repair or replacement minus a seventy five dollar fee which is paid at the time of repair. Structural repairs such as our roof were not covered. Companies and plans vary so do your homework if you’re considering buying a plan for your home.

Home protection plans are not replacements for home owner’s insurance, it’s just an extra piece of mind. Don’t skip having the home you are planning to buy inspected because it includes such a policy. Always hire a licensed professional inspector to look the place over.

So, are they worth the money? In my personal example, even if I had purchased the plan with my own money I would have came out far ahead financially. In fact, we renewed our policy at my expense without hesitation. Shorty after we moved in we lost electricity in two rooms. Our bathtub in the second bathroom started leaking behind the wall. We purchased the home in the winter and in late spring when we opened the pool we discovered the sand filtration system was shot. Those three items combined cost me $225 ($75 x 3 occurrences). Our home warranty plan paid over $3000 for the repairs and a new pool filter.

As you can see, we saved in that situation. I renewed the plan for another year because the alternative would be to use a credit card when something major breaks and that’s not a plan at all. Ideally you would have an emergency fund building interest somewhere but until you have that established a home warranty might just be the answer. We even added the washer and dryer to this year’s plan.

Tip: Even though we knew we would renew, we made them work at selling it. We ended up with a free upgrade with a lowered initial repair fee of $40 rather than the $75.

The bottom line is how much risk you’re willing to take. You can save $250 to $500 a year by skipping the home warranty if you’re a gambler. It is a large expense, especially if you believe the risks are low due to the condition of your home. How do I see it? If my 20 year old furnace or my 50 gallon hot water heater goes out, I’m going to be very happy to write that $40 check to have it repaired or replaced. If nothing at all happens I’m still ahead and I didn’t have to worry about it for a year. If my home were newer and everything was under five years old, I’d probably take the $500 and get that emergency fund started.

Buying a new home warranty is much like buying an extended warranty on your refrigerator or car — there are a lot of questions to be asked.

Many states have different laws regarding home warranties. For example, in California, state law allows you to sue builders for general defects for up to four years after the home is completed. You can also hold the builder liable for latent defects on major components for ten years. Why would you need the warranty if the law says the builder must pay?

We are starting to see many warranty products being offered on existing homes. You should be cautious with these products.

Start by checking with your state’s Department of Insurance. The department regulates the industry. They will be able to tell you whether or not a particular home warranty company is in compliance with the state regulations.

Many advisors suggest that you should waste your money on warranties for resale homes. These warranties include standard coverage for the home’s heating, electrical and plumbing systems. Your kitchen appliances are often part of the standard coverage. You can often add your air conditioner, pool, well pumps, solar components and root coverage for an additional cost.

You will often find that sellers offer the warranties. The warranty is by no means an acceptable substitute for a professional home inspection. If the seller pays for the insurance, then fine. But if you are asked to, you need to think hard about it.

Not only will you spend a couple of hundred of dollars for the plan, you will pay around a $50 deductible every time someone comes out to look at a problem.

Most plans also limit how much they pay to correct problems. You are better protected by having a professional property inspector inspect the home thoroughly and uncover the problems for you. The inspection is a better usage of your money.

But the plans are popular. Eighty percent of existing home sales include a home warranty in California. If you are thinking about taking out a home warranty on your new purchase, you should ask your friends and family for referrals. You are looking for a company with a good track record of happy customers.

Make sure you shop around. Look at price, service fees, coverage and company stability. Make sure you look at all of the costs that you will have to pay and the coverage amounts. Be certain that the coverage is applicable to your home. You don’t want the policy to be voided because your home is too old.

If you want to purchase warranty insurance, then go ahead. Some people do benefit from the coverage. Like all insurance, the company is betting that you won’t ever make a claim. If you don’t, you’ve lost your money.

Homeowners insurance covers personal belongings and the entire house in case fire, theft, or natural disasters such as lightning, a tree falling, heavy snow damaging a roof etc.  A homeowners insurance policy does not cover regular maintenance and replacement costs of appliances and most home systems, which is where home warranty coverage picks up.  A home warranty is a type of wear and tear insurance against equipment and appliances such as heater, A.C. unit, plumbing and electrical systems.

What does homeowners insurance cover?

• Personal property, furniture, clothing, jewelry etc.
• Structure and contents of the home
• In most cases your living expenses if the home is not in a living condition due to natural disasters
• Appliances are covered as well, but only in the event of natural hazard or special circumstances.
• If someone visiting your house gets injured while in your property (such as a slip and fall) and if you are sued, you are covered by homeowners insurance.
• Homeowners insurance protects you from fire, lightning, tree-falls, burglary, storms, etc.

What does a home warranty cover?

• Like homeowners insurance, a home warranty can be adjusted or customized to suit the homeowner.  In most cases, basic coverage includes the repair and replacement of all major appliances such as Heating/Cooling systems, Water Heaters, refrigerators, Dishwashers, Ranges, Ovens, washer/dryers etc.  Plumbing and electrical system are also included in most basic coverage plans.
• Optional coverage varies.  Many companies also cover roof maintenance in the basic coverage, but some companies charge extra.
• Coverage is generally effective 30 days from the date of buying the policy. But be aware that claims can be denied by companies for various reasons, including what they consider “maintenance negligence”.

Normally whenever you apply for a mortgage loan, most lenders require that you have proof of insurance on your home. Often times what you think you are covered for, is not included in your policy, and things like electrical problems, heating and mold infestation are not covered. This can be stressful and these kinds of additional expenses will certainly not be welcome.

If you have a seller’s home warranty, once the deal is closed, any problems that may occur in the home will now be covered. So any expensive repair you may have to do, or pipes you have to fix will be taken care of by the warranty. Your home insurance will not likely cover these kinds of problems that will occur from time to time.

Your seller’s home warranty also covers, whatever the cost is to repair any damage in the new home, once the deal is done. Things like failures in the electricity, plumbing, air conditioning, and heating will be paid for by the home warranty. Be aware though, that unless these failures occurred on their own, the seller’s home warranty will not pay for the repairs. If you commit a code violation, or are found wanting in terms of how you care for the affected system and any maintenance, you cannot be denied coverage.

If you decide to get a home warranty, be extra vigilant in reading and comprehending the stated terms and conditions on the contract agreement. You will be unable to dispute or challenge the policy once you have signed the contract and made payment. The term of a home warranty is usually one year, so you will have coverage for that period of time. So if you should decide to sell your home, you should let the buyer know when the home warranty will need to be renewed, and leave it up to them to decide whether or not they want to extend it.

In the final closing costs of your mortgage, you may also include your seller’s home warranty. You also have the option of buying home warranty and deferring paying until the deal is closed. Just as you would do, to get a number of home insurance quotes, the same applies when seeking a home warranty. Seek as many quotes as you desire and make your decision accordingly.

The first step is to decide if you need home warranty.  You should get a detailed home inspection report on your existing house from a third party inspector.  This report will help you understand the potential and existing problems with your appliances, and will also help you decide if you need home warranty.  If some appliances are aging and need special attention, be sure to check if the warranty company provides sufficient coverage for those appliances in particular.

Check with your friends and colleagues as to which providers do they use, and how their experiences rate them.  Be sure to ask about their satisfaction levels with service and claims processing. The may some comments about customer service, contractor turnaround, quality of work etc.

It is important to choose a company that has a decent track record, as many consumers are dissatisfied with the services offered by many home warranty companies and it is indeed difficult to deal with some companies when it comes to claims processing.  It is not easy to find a perfect home warranty company, but you can always chose a company with least number of complaints.  There are several ways to research.

1. Check with several companies via internet.  You can often receive a free quote from an online company with no obligation.
2. Check the company’s track record using trade organizations such as Better Business Bureau
3. Research the company over the Internet for any negative reviews.  Insurance discussion boards list complaints against many home warranty companies.
4. Your real estate agent or broker will also be able to provide the name of few reliable warranty companies in the area.

Next, determine if you need additional coverage.  The coverage can vary from plan to plan with regard to duplicate sets of equipment (second refrigerators) or items such as pools ad spas.

Now, start calling the companies and make notes of their offerings. Be sure to collect information such as -

• Annual premium

• The deductible per incident (including any service call fees)

• Average turnaround time for repairs

• Additional costs for any extra coverage, if necessary.

• If you have any aging equipment reported in your Home Inspection report, be sure to confirm that the warranty company provides adequate coverage.

• Determine the period of time before the police will be in force (especially if you need immediate coverage)

• Ask for clarifications and contractual obligations.  Take note of how you are treated, which can be a good indicator of how the company treats its customers after the sale.

Lastly, glance over the contract terms when you are ready to buy the coverage.

Now you have completed your due diligence.  Hopefully you have gained knowledge about home warranty coverage in this process. Having a better idea about your coverage will help you when you are dealing with the conflicts with home warranty companies.

Home Seller’s Warranty
Now that the real estate market is cooling somewhat, you’ll more likely to find your competitive home sellers offering a seller’s warranty. But what exactly is a seller’s warranty? How can a home warranty help sell your property?

In short, a seller’s warranty provides added assurance that any repairs to major appliances, plumbing, and other home systems will be covered by the seller within a specified time period after the home is purchased, excluding a typical deductible of $35-60. Seller’s warranties are always offered by builders of new homes, but they’re becoming increasingly popular as sales tools for older homes, as well. For the seller, the cost is about $300-400, but it can be well worthwhile, especially if it means a quicker sale of their home.

There are some real estate companies that offer seller’s warranties at no cost to their sellers during the home’s listing period, such as Home Warranty of America, but the most agencies require their sellers to pay for the warranty if it’s something they’d like to offer potential buyers–with the cost often built into the sales price.

Home Buyer’s Warranty
A similar home warranty can be purchased by buyers, as well. The typical $300-400 cost is similar to what a seller would pay for similar coverage, and a buyer’s warranty covers the same things as a seller’s warranty. The main difference is that a buyer’s warranty typically begins on the date of closing and continues for a one-year period after that. Another difference: the buyer’s warranty can be renewed annually.

Besides Home Warranty of America, there are a number of other companies that offer home warranties for sellers and buyers. Those companies include: 2-10 Warranty, American Millennium (which offers a policy to specifically cover hidden structural or pest damage to a home), Ram Home Warranty, and Home Warranty Plans, but you’ll probably find others if you do an Internet search or check with your local real estate broker.

As is the case with any consumer product or service, it’s always wise to do some research before you decide whether a seller’s or buyer’s warranty is something you want to consider. Then, if you’ve decided that such a warranty is worthwhile in your particular situation, make sure to compare the various programs to see which ones are available in your area, what they specifically cover, their overall cost, the amount of their deductible, anything that might be excluded from the program, and any other variables before you commit. Remember, you can offer the warranty, but if you consider an offer less than full price, you can ask the buyers to provide their own warranty.

Typical Home Warranty’s Standard Coverage Includes:

Built-in kitchen appliances: Dishwasher, Oven/Range/Cooktop, Microwave, Garbage disposal, Trash compactor, etc.

Central heater and ductwork

Plumbing system, water heater, drains

Electrical system and telephone wiring

Attic and exhaust fans

Limited pest control

Extended Coverage Available:

Limited roof repair

Central air conditioning

Washer/Dryer/Kitchen refrigerator

Well and septic systems

Pool equipment and/or Spa equipment including Solar

Save Money Buying Your Warranty
Shop online instead of ordering through your agent or escrow company. The major providers offer a discount price for orders placed online. You save the commission paid to a third party who normally arranges the policy.

Providing this service adds to your home’s overall appeal to home shoppers. It protects the home buyers against unexpected breakdowns. who never worry about how much repairs will cost or who to call to fix a broken item. A home warranty gives your home buyers the peace of mind they seek.

What is a ‘Home Warranty?’ A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies. Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.

Is this too good to be true? Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. “Yep” he says “Your A/C equipment is shot, you’re going need a new one.” “Good thing I have this warranty” you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it “serviced” each year or because the service tech says the reason it went out was because of a “Pre-existing” condition.

I’ve seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that’s money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of “we won’t warranty it ‘if’s’.” The Technician who comes to your home may be the one who’ll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.

Here are a few reasons I’ve seen Home Warranty Companies deny claims · Lack of regular maintenance · Pre-Existing conditions · Questionable ‘Code’ issues · Components not installed per the manufacturers installation instructions

The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.

You also want to make sure what the Home Warranty will cover and what it doesn’t. I’ve never seen a policy with blanket coverage so don’t assume it will ‘cover everything in the home’ like some real estate agents tell you. Read the fine print!

What are my options if my warranty company denies my claim?

I’m betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG’s office of your state if you’ve had a denial of a claim in which you feel is legitimate.

Good Luck and read the fine print on those contracts!

In short, a seller’s warranty provides added assurance that any repairs to major appliances, plumbing, and other home systems will be covered by the seller within a specified time period after the home is purchased, excluding a typical deductible of $50-60. Seller’s warranties are always offered by builders of new homes, but they’re becoming increasingly popular as sales tools for older homes, as well. For the seller, the cost is about $300-400, but it can be well worthwhile, especially if it means a quicker sale of their home.

There are some real estate companies that offer seller’s warranties at no cost to their sellers during the home’s listing period, such as Home Warranty of America, but the most agencies require their sellers to pay for the warranty if it’s something they’d like to offer potential buyers–with the cost often built into the sales price.

Home Buyer’s Warranty
A similar home warranty can be purchased by buyers, as well. The typical $300-400 cost is similar to what a seller would pay for similar coverage, and a buyer’s warranty covers the same things as a seller’s warranty. The main difference is that a buyer’s warranty typically begins on the date of closing and continues for a one-year period after that. Another difference: the buyer’s warranty can be renewed annually.

Besides Home Warranty of America, there are a number of other companies that offer home warranties for sellers and buyers. Those companies include: 2-10 Warranty, American Millennium (which offers a policy to specifically cover hidden structural or pest damage to a home), and Home Warranty Plans, but you’ll probably find others if you do an Internet search or check with your local real estate broker.

As is the case with any consumer product or service, it’s always wise to do some research before you decide whether a seller’s or buyer’s warranty is something you want to consider. Then, if you’ve decided that such a warranty is worthwhile in your particular situation, make sure to compare the various programs to see which ones are available in your area, what they specifically cover, their overall cost, the amount of their deductible, anything that might be excluded from the program, and any other variables before you commit. Remember, you can offer the warranty, but if you consider an offer less than full price, you can ask the buyers to provide their own warranty.

Providing this service adds to your home’s overall appeal to home shoppers. A home warranty gives your home buyers the peace of mind they seek.