Home Warranty Facts And The Best Companies In 2023

When you buy a home, there are several expenses you may expect – like a down payment, closing costs and moving fees. Since you know these costs are coming, it’s easier to plan and save for them.

But once you move in, you quickly learn about all the unexpected costs that come with homeownership. For instance, if a major appliance or system in your home fails, it can be costly to fix. That’s why many homeowners invest in a home warranty – to provide a safety net against expensive repairs.

But how much financial protection does a home warranty actually provide? And which provider should you go with? In this article, we’ll explain how a warranty works and review some of the top companies to consider.

What Does A Home Warranty Cover?

Just as there are different insurance plans, there are also different home warranty plans, in which costs and coverage may vary. The best home warranty for you will depend on your personal needs as a homeowner. Likewise, what your home warranty will cover will depend on the type of plan you choose.

There are typically three types of home warranties: one that covers a specific appliance, one that covers a variety of appliances and one that covers several appliances and critical systems in your home. Keep in mind, not all appliances or systems will be covered under a home warranty.

Best Home Warranty Companies In 2022

Finding the best home warranty company to fit your personal needs can be a bit of a challenge. That’s why we did some research and came up with this list of some of the best warranty companies available.

Here’s our list of the best home warranty companies (for methodology for rankings, see end of article):

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Finding The Best Home Warranty For You

Now that we understand the value of a home warranty at a high level, let’s get into some more details about our top companies to help you find the option that will best meet your needs.

Reasons You May Want A Home Warranty

When considering a home warranty, it’s important to review the features of your home and determine if adding a warranty would add value. For example, if your HVAC system is nearing the end of its life, a home warranty plan may come in handy and save you from extra costs.

Your home is one of the largest purchases you’ll make, so any extra precautions you can take to save your investment are beneficial. When deciding if a home warranty plan is right for you, here are some basic questions to ask before purchasing a plan: 

Reasons You May Not Want A Home Warranty

There are some circumstances where you may not need a home warranty.

When it comes to major repairs, there’s never a good time financially. That’s why having the best home warranty can be a real lifesaver.

“I recommend them with just about every home I sell,” says Sharilyn Weber, a REALTOR^® with Lion Real Estate in Fresno, California.

Choosing The Best Home Warranty For Your Needs

There are three basic kinds of home warranty plans, each escalating in cost and coverage.

Even the most expensive home warranty plans might not cover all your home appliances or systems. A second refrigerator in the garage or equipment for an outdoor pool might not have coverage under the warranty contract. If you want items outside of the original policy covered, you’ll have to negotiate with the insurance company.

“They’re very specific in what they do and don’t cover,” says Weber.

Negotiating could pay off. Weber includes her pool’s cellular-powered chlorination system in her own $670 home warranty.

“We’ve lived in our home for 6 years and our power cell has gone out three times – that would have cost $1,000 each time to replace. So, in our case, the warranty has more than paid for itself,” she says.