Plans are usually 12-month contracts, and providers usually give you the option to pay monthly or all at once. The graphic confirms the fact that the typical cost of a home warranty will largely depend on the plan the consumer chooses. First American has been offering home warranties for more than 35 years and has refined its pricing structure to meet the needs of a wide range of customers. Ultimately, the typical price of a home warranty is affected by multiple factors including geography, the options of the plans themselves, and the type of home being insured.
When comparing home warranties, be sure to ask the right questions to decide if a package is right for you. A typical Choice plan is a combined plan for kitchen systems and appliances, with full coverage plans that include laundry appliances, air conditioners and additional refrigerators. The list of systems covered by home warranties is quite standard, but pay attention to the subtleties in the wording, such as the difference between plumbing systems and plumbing stops. While many consumers choose home guarantees to protect their investment regardless of how old the home is, research clearly shows that home guarantees are much easier to buy when homes are new.
Home guarantees can provide great security and peace of mind, but they also come with potential difficulties and exclusions, so it's important to be clear about what your policy covers and how to use it. There are some items that are not normally included in standard home warranties, but if you contract a service contract, you may be able to add them for an additional fee. Unlike home insurance, which covers the home itself, home guarantees focus on things inside the house, including appliances, electrical systems, plumbing, and more. Home warranties are service contracts for systems and appliances throughout the house and its surroundings.
For most home guarantees, once this service fee is paid, there are no additional charges associated with the plan. If the damage to your appliance or system is serious or if parts are no longer available, the home warranty will generally cover the cost of a replacement. Home guarantees don't have traditional deductibles (like you'd see in an insurance policy), but they do have service fees, which you'll have to pay when you have a technician do the repairs.
