Average Cost and Extra Fees
When comparing home warranty companies, you will find that there is a wide range in the annual fees they can charge. Some home warranty companies charge one comprehensive, annual fee, while others will charge a lower annual fee but add in extra fees throughout the year. So don’t assume that one company is a better choice, just because it has a lower annual fee. Also, take note that some companies will have different pricing based on the state you are in. So when evaluating cost, make sure you are looking at your state-specific cost, not just the company’s average cost across all states.
It is important to understand what states companies cover and what condition your appliances have to be in to be eligible for coverage. Before choosing a home warranty company, review their state-specific guidelines to make sure they offer their full and best services in your state and for the condition which your appliances are in.
Also, understand what kind of appliances a home warranty company covers. It may cover one appliance, but if you have a second of that same appliance, it might not be covered. Getting a home inspection from someone outside of your home warranty company can be a good resource for getting accurate information on the problems that could occur with your appliances.
Homeowner’s Insurance vs. Home Warranties
It can be hard to differentiate between homeowner’s insurance and home warranties, but there are some key differences to look out for. Understanding the difference between the two can help you determine if a home warranty is right for you. Homeowner's insurance is an insurance policy that covers accidental damage done to your home. This can include coverage for losses caused by natural disasters, fire, and theft. A home warranty is a service contract that will replace or repair the appliances you have in your home.