Free access to PawSupport, a 24/7 vet helpline available even on holidays.
Pros and cons
Offers reimbursement for sick vet exam fees.
Multipet and military discounts available.
Wellness plan includes prescription diet food coverage.
No mobile app.
6-month waiting period for orthopedic conditions in dogs.
Claims process could be quicker.
Bottom line
Paw Protect insurance offers an unlimited annual coverage option and access to a 24/7 vet helpline. But it has a slower claims process than some other insurers and no mobile app.
About Paw Protect pet insurance
Paw Protect earned 4.5 stars out of 5 for overall performance. It stands out for having comprehensive accident and illness coverage that includes congenital and hereditary conditions, dental illnesses, behavioral issues and alternative therapies.
Strengths: Paw Protect’svet telehealth service is free for all policyholders. Available by phone, live chat or video call, it offers round-the-clock support if you have any health concerns about your pet.
Weaknesses: Paw Protect doesn’t have a mobile app to manage your policy, and it’s slower than some other pet insurers in handling claims.
Paw Protect pet insurance plans and coverage
Paw Protect has a few plans to choose from.
Note: Coverage options and availability may vary depending on where you live and the age and breed of your pet.
Accident and illness
Paw Protect’s accident and illness plan is a comprehensive plan that covers:
Sick vet exam fees and medical waste disposal.
Emergency and specialist care.
Prescription medication.
X-rays, ultrasounds and other diagnostic tests.
Hospitalization and overnight stays.
Dental injuries.
Dental illnesses, up to $1,000 per policy term.
Congenital and genetic conditions, including hip dysplasia, ACL injuries, allergies and intervertebral disc disease (IVDD).
Cancer and chronic conditions.
Acupuncture, chiropractic treatment and laser therapy.
Behavioral therapy.
Euthanasia.
Accident only
Paw Protect’s accident-only plan is generally for older pets. It covers treatment for accidents like broken bones, bite wounds, ingested objects and car accidents. It doesn’t cover any claims related to illnesses.
Wellness Rewards
Paw Protect’s Wellness Rewards is an extra package you can add to your insurance plan. It’s offered through Embrace pet insurance and pays for routine care up to $250, $450 or $650 per year. You can get reimbursed for:
Wellness exam fees.
Flea, tick and heartworm prevention.
Microchipping.
Nutritional supplements and prescription food.
Fecal and blood tests.
Pet activity monitors.
Hip dysplasia exams.
Routine chiropractic, acupuncture, massage therapy and reiki care.
Routine anal gland expression.
Cremation and burial expenses.
What’s not covered
Paw Protect pet insurance doesn’t cover:
Breeding, pregnancy or giving birth.
DNA testing or cloning.
Intentional injuries by you or someone in your household.
Injuries or illnesses from racing, fighting, cruelty or neglect.
Cosmetic procedures like tail docking or ear-cropping.
Routine veterinary care, unless you have a wellness plan.
Avian flu or nuclear war.
If you have an accident-only plan, Paw Protect also won’t cover any illness-related claims.
Paw Protect coverage options
Deductibles: A pet insurance deductible is the amount you have to pay before your plan reimburses you for vet expenses. Paw Protect’s annual deductible options are typically $100, $250 and $500.
Reimbursement amounts: Pet owners have the option to get reimbursed for 70%, 80% or 90% of vet expenses.
Paw Protect applies your reimbursement percentage to the vet bill first, before subtracting your deductible. Say you have a $2,000 vet bill, an 80% reimbursement rate and a $500 deductible. To determine your eligible expenses, Paw Protect calculates 80% of $2,000, which is $1,600. Then, it subtracts your $500 deductible, so your reimbursement amount is $1,100.
Some pet insurers subtract your deductible from the vet bill before applying the reimbursement rate. Using the same figures, that method would result in a slightly higher $1,200 payout ($2,000 bill – $500 deductible = $1,500. 80% of $1,500 is $1,200).
Coverage limits: You can choose an annual coverage limit of $5,000, $10,000 or unlimited.
Restrictions and waiting periods
Age restrictions: At Paw Protect, pets must be at least 2 months old to get a policy. The company’s website states that the maximum age of enrollment is 5 years for an accident and illness plan, with accident-only coverage available for older pets. However, in certain states, we were able to get online quotes for accident and illness plans for pets older than 5. We’ve reached out to Paw Protect for clarification.
Waiting periods: A waiting period is the time between when you buy your policy and when your coverage starts. Paw Protect has a two-day waiting period for accidents and a 14-day waiting period for illnesses. Dogs also have a 12-month waiting period for orthopedic conditions like hip dysplasia. Paw Protect may waive the orthopedic waiting period if your vet performs an examination after enrollment and verifies that your dog has no orthopedic issues.
Paw Protect pet insurance rates
The cost of Paw Protect pet insurance will depend on where you live and your pet’s age and breed. Below are sample monthly rates from Paw Protect for six common dog breeds at ages 2 and 8. Our sample dogs lived in Katy, Texas, and had accident and illness coverage with a $250 deductible, $5,000 of annual coverage and an 80% reimbursement rate. Your own price will vary.
French bulldog
German shepherd
Golden retriever
Labrador retriever
Medium mixed-breed dog
We also gathered rates for a variety of cat breeds with the same coverage limits as above. Rates below are sample monthly premiums for cats living in Katy, Texas.
Domestic shorthair
Exotic longhair
Maine coon
Discounts
Paw Protect offers a 10% multipet discount and a 5% military discount.
State availability
Paw Protect is licensed to sell policies in all 50 states and Washington, D.C. Wellness plans aren’t available in Rhode Island.
Availability may change at any time. Coverage may not be available to all pets in a given state.
Consumer experience
Website: Paw Protect’s website is easy to navigate and has an education center with information about pet insurance. You can also get a quote, view sample policies and see how Paw Protect compares with other insurance companies.
App: Paw Protect doesn’t have a mobile app.
Claims: The fastest way to submit aclaim is by logging into your account on Paw Protect’s website. But you can also email, fax or mail your claim forms. It takes about 10 to 15 business days to process an accident or illness claim and about five business days to process a wellness claim. You have your entire policy term to file a claim, plus an extra 60 days after renewal.
Customer service: You can call Paw Protect customer service at 888-812-6704 Monday through Friday from 9 a.m. to 8 p.m. ET and Saturdays from 10 a.m. to 2 p.m. ET. You can also email customer support.
Other pet insurance companies to consider
Not ready to make a decision? You may be interested in these other pet insurance companies:
How we review pet insurance
Our writers and editors follow strict editorial guidelines that ensure fairness and accuracy to help you choose the financial products that work best for you. In our pet insurance reviews, we consider coverage, discounts, financial strength ratings from AM Best and more to determine our star ratings.
Our rating system rewards companies that cover a wide range of potential expenses, offer many ways to customize your plan and have a strong financial rating. Within the consumer experience category, we looked at features such as mobile app ratings and whether the company offers direct vet payments. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
Frequently asked questions
Does Paw Protect cover vaccinations?
Paw Protect covers vaccinations under its wellness plan. With this add-on, you can get reimbursed for routine care, up to $250, $450 or $650 per year. For all plans, you save about $25 per year if using the total benefit amount. In addition to vaccines, this plan covers things like wellness exam fees, spaying and neutering, microchipping, dental cleaning, and routine blood work.
How does Paw Protect insurance work?
Paw Protect insurance helps cover the costs if your pet gets sick or inured. You pay a monthly or annual fee, and if your pet needs to go to the vet, you pay the bill, then submit a claim for reimbursement. The amount you get back depends on the coverage options you’ve selected.
How do I cancel Paw Protect pet insurance?
You can cancel your Paw Protect policy at any time by calling customer service.
Accident and illness policies have unlimited annual coverage.
Live customer support chat available.
15-day waiting period for orthopedic issues is shorter than that of many other insurers.
No waiting period if your pet is switching from another policy.
No option to pay your vet directly.
No hip dysplasia coverage for pets enrolled after age 5.
Wellness plans don’t reimburse for spay/neuter surgery or microchipping.
Bottom line
ManyPets offers comprehensive coverage for pet owners with short waiting periods for orthopedic conditions and fast claim processing times.
About ManyPets pet insurance
ManyPets earned 4 stars out of 5 for overall performance thanks to its modern take on pet insurance. You can live-chat customer support and receive a claims decision within 48 hours in many cases.
Unlike many of its competitors, ManyPets doesn’t have a separate, multi-month waiting period for orthopedic conditions like knee injuries or hip dysplasia. Coverage for these and all other conditions begins 15 days after you buy your policy. The company will waive the waiting period if you’re switching to ManyPets from another pet insurance provider.
ManyPets insurance was founded in 2012.
Strengths: ManyPets has a comprehensive accident and illness plan that includes coverage for exam fees and dental disease treatment — two items not always covered by other plans.
Weaknesses: ManyPets doesn’t cover prescription food or behavioral modification. It also doesn’t have an accident-only plan, and its wellness package won’t pay for spaying or neutering.
ManyPets pet insurance plans and coverage
ManyPets offers a single accident and illness plan with the option to add preventive care coverage.
Note: Coverage options and availability may vary depending on where you live and the age and breed of your pet.
Accident and illness
The ManyPets accident and illness plan has no annual coverage limit. This plan can reimburse you for:
Sick visit exam fees.
Vet specialist and ER visits.
Prescribed medications.
Treatment for illnesses including cancer, dental diseases and hereditary conditions.
Diagnostic tests.
Rehabilitation, acupuncture and chiropractic treatments.
Surgeries.
Hospitalization.
Euthanasia and cremation.
Wellness plan
You can add an optional wellness plan to get reimbursed for preventive care expenses. The ManyPets wellness plan has a total annual benefit of $600. It covers:
Checkups and vaccines, up to $150 per year.
Parasite testing and prevention, up to $150 per year.
Teeth cleaning, dental chews and other oral care expenses, up to $150 per year.
Vitamins, supplements, and services such as acupuncture or massage, up to $150 per year.
What’s not covered
A ManyPets accident and illness plan won’t pay for:
Pre-existing conditions, unless your pet has been symptom-free without treatment for at least 18 months.
Routine care, unless you’ve added a wellness plan.
Hip dysplasia, if you enrolled your pet after age 5 or the animal has previously been diagnosed with this condition.
Behavioral modification treatments.
Anal gland expression.
Breeding, pregnancy or giving birth.
Sickness or injury due to neglect, racing or guarding.
Cosmetic procedures like tail docking or dew claw removal.
Treatment of cruciate ligament problems if your pet has had prior cruciate ligament injuries to any leg before the start of the policy.
The ManyPets wellness plan doesn’t cover the following (some of which other companies’ preventive care packages will cover):
Spay or neuter surgery.
Microchipping.
Blood tests.
Grooming services.
Prescription diet food.
ManyPets coverage options
Deductibles: A pet insurance deductible is the amount you have to pay before your plan reimburses you for vet expenses. For the ManyPets accident and illness plan, deductible options may range from $250 to $1,000 per year, though not all pets have the same choices.
Wellness plans have no deductible.
Reimbursement amounts: ManyPets will reimburse you for a certain percentage of vet expenses, minus your deductible. With ManyPets plans, you can generally choose between a 70% and 80% reimbursement rate.
ManyPets first applies its reimbursement rate to your vet bills, then your deductible. This is a less generous method of payment than that of some other pet insurers. Say you have a $1,000 vet bill, an 80% reimbursement rate and a $500 deductible. ManyPets will deem $800 of your bill reimbursable (80% of $1,000), then subtract the $500 deductible from your payout. That leaves ManyPets paying $300 and you covering the remaining $700.
Companies that apply the deductible first would pay $400 of the same vet bill. Here’s the math: $1,000 vet bill – $500 deductible = $500. 80% of the remaining $500 vet bill = $400.
Reimbursement percentages don’t apply to the ManyPets wellness plan.
Coverage limits: ManyPets has no annual coverage limit for its accident and illness plan. Its wellness plan can pay up to $600 per year.
Restrictions and waiting periods
Age restrictions: New policies are available to pets between the ages of 8 weeks and 14 years. Once enrolled, your pet won’t be denied coverage due to age as long as your policy stays active. You must enroll pets before age 6 for hip dysplasia coverage.
Waiting periods: A waiting period is the time between when you buy your policy and when your coverage starts. ManyPets has a 15-day waiting period in most states for accident and illness coverage. Wellness coverage begins the day after purchase.
ManyPets pet insurance rates
The cost of ManyPets pet insurance depends on where you live and your pet’s age and breed. Below are sample monthly rates from ManyPets for six common dog breeds at ages 2 and 8. Sample pets lived in Katy, Texas, and had accident and illness coverage with a $250 deductible, unlimited annual coverage and an 80% reimbursement rate. Your own price will vary.
French bulldog
German shepherd
Golden retriever
Labrador retriever
Medium mixed-breed dog
We also gathered rates for a variety of cat breeds with the same coverage limits as above. Rates below are sample monthly premiums for cats living in Katy, Texas.
Domestic shorthair
Exotic longhair
Maine coon
Discounts
ManyPets doesn’t advertise any pet insurance discounts.
State availability
ManyPets pet insurance is available in Washington, D.C., plus all states except Hawaii, Idaho, Maine, Massachusetts and Minnesota.
Availability may change at any time. Coverage may not be available to all pets in a given state.
Consumer experience
Website: The ManyPets website is easy to use. You can get a free quote and enroll your pet, plus browse FAQs to get answers to your questions. The website also has sample policies if you’d like to review details before you purchase a plan.
App: TheManyPets mobile app is available for both iOS and Android. You can use the app to submit and track claims, view benefit information, refer friends, and watch pet care videos.
Claims: With ManyPets insurance, you pay your vet upfront and get reimbursed after filing a claim. You have 180 days to file a claim from when you pay your vet bill. You can file a claim online or in the mobile app. ManyPets tries to process most accident and illness claims within 48 hours. It issues reimbursements within 24 business hours of approval, so you can generally expect a quick turnaround. You can get your reimbursement via bank deposit or check.
Customer service: The ManyPets customer care team is available by phone at 888-978-5291 and by email at [email protected]. You can also reach out via live chat. The company’s business hours are Monday through Friday from 9 a.m. to 9 p.m. and Saturdays from 10 a.m. to 6 p.m. ET.
Other pet insurance companies to consider
Not ready to make a decision? You may be interested in these other pet insurance companies:
How we review pet insurance
Our writers and editors follow strict editorial guidelines that ensure fairness and accuracy to help you choose the financial products that work best for you. In our pet insurance reviews, we consider coverage, discounts, financial strength ratings from AM Best and more to determine our star ratings.
Our rating system rewards companies that cover a wide range of potential expenses, offer many ways to customize your plan and have a strong financial rating. Within the consumer experience category, we looked at features such as mobile app ratings and whether the company offers direct vet payments. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
Frequently asked questions
Does ManyPets cover neutering or spaying?
ManyPets doesn’t cover neutering and spaying for your pet, even under a wellness plan. This is unusual, as many pet insurance companies will reimburse you for spay or neuter surgery if you have a preventive care package. Learn more about which pet insurance companies cover spaying or neutering.
Does ManyPets cover dental issues?
ManyPets covers dental injuries and illnesses as long as they’re not related to a pre-existing condition. If you have a wellness plan, you can get reimbursed up to $150 per year for preventive care like cleanings, dental chews and toothbrushes. Learn more about pet dental insurance.
How do I cancel ManyPets insurance?
You can cancel your ManyPets insurance at any time by calling or emailing the company. It will cancel your policy and stop future premium payments. If you aren’t happy with the policy within the first 30 days and haven’t made a claim, you can cancel for a full refund in most states.
In today’s volatile housing market, ensuring your home is protected against unexpected repairs and replacements is more crucial than ever. As homeowners seek peace of mind amidst the unpredictability of homeownership, home warranty companies have stepped up to offer a buffer against unforeseen expenses.
5 Best Home Warranty Companies
With so many options available, pinpointing the most reliable and value-packed home warranty company can be daunting. To help you choose, we’ve curated a list of the best home warranty companies to ensure your home’s systems and appliances receive the top-tier coverage they deserve. Take the time to discover which provider aligns best with your needs.
#1 Choice Home Warranty
There are plenty of reasons to go with Choice Home Warranty. First, they are a top-rated business according to ConsumerAffairs.com and have an average rating of 4.8 out of 5.
They have a five-star rating from Trust Pilot, and Inc. 5000 has recognized them as one of America’s fastest-growing private companies.
Choice has customer service available 365 days a year, 24 hours a day, 7 days a week. So if you’ve got a problem, don’t be afraid to pick up the phone and call them.
They are more than happy to answer any questions about your home warranty plan or, if need be, put in a request for a repair. A licensed, pre-screened, and continuously monitored technician will come to your house, usually within one or two business days.
The age of your home, its systems, and appliances is not relevant to Choice Home Warranty. They always cover items that have been properly maintained and were in well-working order when coverage was initiated.
If the item in question needs to be replaced but is no longer available on the market, they will give you a cash payment of the item’s replacement cost.
Another plus is that you don’t even have to get your home inspected before Choice Home Warranty will begin offering you coverage.
Choice also has a very reasonable $85 dollar service call, which makes them among the most competitive warranty providers for service calls.
Plan Options
1. Total Plan ($450 a year)
Includes coverage on the following —
AC
Heating
Electrical
Plumbing
Water Heater
Whirlpool
Refrigerator
Oven
Dishwasher
Microwave
Garbage Disposal
Washer and Dryer
Ductwork
Garage Door Opener
Ceiling and Exhaust Fans
2. Basic Plan ($378 a year)
Includes coverage on everything mentioned above, EXCEPT:
AC
Refrigerator
Washer and Dryer
Items that can be added at additional cost include:
Pool
Central Vacuum
Well and Sump Pump
Limited Roof Leak
Stand Alone Freezer
Second Refrigerator
Septic System
Septic Pumping
Read our full review of Choice Home Warranty
#2 Advanced Home Warranty
Advanced Home Warranty offers comprehensive coverage and a 24/7 claims hotline, making it a strong choice for anyone considering a home warranty.
Home warranties are available nationwide, so you can qualify for a plan, no matter where you live in the U.S. Plus, you can try it out without any risk by signing up to get your first month completely free of charge.
Trade service fees are reasonable at $60. If the cost of the repair is less, you’ll pay the smaller amount. This is one of the lowest service fees available among the providers on our list.
While they don’t offer a wide range of plans, you can get coverage on some of the big-ticket items associated with homeownership.
A low monthly fee can be much more manageable than paying for replacements outright every time an appliance breaks. There are also parts of even larger systems that are included in their coverage.
Here’s a breakdown of the two home warranty plans available from Advanced Home Warranty, how much you’ll pay, and what exactly they include.
1. Basic Plan ($370 a year, plus one month free)
Includes coverage on the following:
Heating System
Electrical System
Plumbing System
Dishwasher
Microwave
Garage Door Opener
2. Total Plan ($450 a year, plus one month free)
Includes coverage on everything above, PLUS:
Air Conditioning
Refrigerator
Washer/Dryers
Do read each home warranty plan for details on exactly how each specific item on the list is covered.
Read our full review of Advanced Home Warranty
#3 Liberty Home Guard
Liberty Home Guard offers a high degree of personalization for your home warranty coverage. For example, you can pick the plan and also how often you want to be billed.
You can choose monthly payments, annual payments, or for the most savings, multi-year home warranty plans.
Liberty Home Guard offers a service call fee of $60, which is a competitive service fee. You can also expect your service call to be delivered within 48 hours of making a claim.
You don’t need a home inspection to qualify for coverage with Liberty Home Guard. There’s also no limit to how many claims you can file within a year.
You can file your claims online for your ease and convenience. And with a 60-day satisfaction guarantee on service, you’re sure to be satisfied with the repair or replacement process.
If for some reason, you want to cancel your plan early, it’s entirely possible because there’s no annual contract. You’ll receive a prorated refund for any time you’ve paid for, except for a small administrative fee.
With Liberty Home Guard, there are three different coverage options you can choose from. You can also include optional add-ons in any plan.
1. Appliance Warranty for $39.99 Monthly or $399.99 Annually
Clothes washer
Clothes dryer
Refrigerator with ice maker dispenser
Built-in microwave oven
Dishwasher
Garbage disposal
Range/ oven/ cooktop
Ceiling and exhaust fans
Garage door opener
2. Systems Guard for $49.99 Monthly or $499.99 Annually
Air conditioning
Heating
Ductwork
Plumbing
Electrical
Water heaters
3. Total Home Guard for $59.99 Monthly or $599.99 Annually
This choice offers the most protection of all the plans and includes everything listed in the two plans above.
4. Optional Add-ons
Pool and spa: $17.00 monthly; $195.00 annually
Sump and pump: $3.00 monthly; $36.00 annually
Central vacuum: $3.00 monthly; $36.00 annually
Well pump: $9.00 monthly; $101.00 annually
Additional spa: $16.00 monthly; $188.00 annually
Septic system and septic sewage ejector pump: $11.00 monthly; $123.00 annually
Stand alone freezer: $4.00 monthly; $44.00 annually
Second refrigerator: $4.00 monthly; $44.00 annually
Read our full review of Liberty Home Guard
#4 Complete Protection
Complete Protection is another excellent home warranty company. Servicing all but nine states, this A+ Accredited Business is open 24/7.
Only slightly more expensive, this once small-scale, family-owned business offers some of the most comprehensive home warranties available in North America.
One of the many benefits offered by Complete Protection is their no-fee service call policy. With most quality providers charging at least $50 per service call, having no service call fee at all is a major perk.
They have five plans you can choose from:
Kitchen/Laundry: $32 a month/ $384 a year — covers your dishwasher, oven, refrigerator, and washer and dryer.
Heating/Cooling: $34 a month/ $408 a year — covers your furnace, AC, and water heater.
Basic Built-ins: $40 a month/ $400 a year — Furnace, AC, water heater, dishwasher, and oven.
Full House: $50 a month/ $600 a year — Furnace, AC, water heater, dishwasher, oven, refrigerator, and washer and dryer.
Full House Plus: $60 a month/ $720 a year — Includes everything mentioned in the first four plans, but also includes electrical wiring and in-bound water pipes.
What makes Complete Protection stand out even more:
There are a few other things that make Complete Protection stand out from its competitors. For one, their home warranties don’t have a deductible. As a result, you don’t have to pay any approved repair costs when something happens — this includes the initial service call, parts, and labor.
Secondly, CP pays for all preventative maintenance. Other home warranty companies mandate that their customers undergo preventative maintenance on items such as HVAC systems, but they won’t even pay for it. Instead, they force their customers to do so!
Thirdly, CP home warranties cover all the parts within an appliance. Most home warranty companies exclude parts like ice makers or washing racks within dishwashers. CP does not pick and choose which parts it will cover.
Lastly, Complete Protection allows you to choose your own service contract provider. So, if you have a certified contractor with whom you work, you can go to them whenever home repairs are needed.
They do this because they feel that their customers should always be comfortable with the person working in their house.
Read our full review of Complete Protection
#5: American Home Shield
The accolades American Home Shield has received are many. In addition to being a Better Business Bureau Accredited Business, they also received the Women’s Choice Award from 2014 to 2016.
On top of that, Home Warranty Reviews gave American Home Shield the Best in Service award in 2014 and ranked them as Top Rated from 2015-2017. Last but not least, they are Consumer Affairs Accredited.
Why so much recognition from the industry? For starters, they’re always open. You can always reach them regardless of what day or time it is. And, when you do, expect a local contractor to be at your home within no more than 24 hours. You don’t even have to get on the phone. You can request home repairs directly from their website.
Another reason American Home Shield is recognized as the best among the best is its versatility with its home warranty plans. They have four to choose from:
Systems Plan: Covers the replacement or repair of your home’s key systems, such as: plumbing, electrical, heating, air conditioning, and smoke detectors.
Appliances Plan: Includes coverage on common, everyday household appliances, such as refrigerators, built-in food processors, dishwashers, and washer and dryers.
Combo Plan: Get coverage on all of your primary home systems and appliances. Saves you $14 a month if you were to rather purchase the systems and appliances plans separately.
Build your own plan: Choose only what you want to be covered by selecting 10 or more items from their list of covered items. This way you get the coverage that you care about the most.
Another element of their customized service is their service fees. American Home Shield allows customers to choose from a service fees range of $75, $100 or $125 per service request. This allows you to get the plan you want without having to account for a high service call fee.
The ability to choose your own service call fee regardless of the plan you’re on separates American Home Shield from most other home warranty companies which carry a standard service call fee.
Additionally, American Home Shield can provide coverage for your pool, spa, well pump, and septic system (at additional costs) and can assist you during the moving process by covering your home while it’s listed. If the new owner decides they would like to upgrade service afterward, it’s an easy switch to do so at closing.
Read our full review of American Home Shield
Methodology: How We Chose The Best Home Warranty Companies
When researching the best home warranty companies, we analyzed over 20 of the most popular home warranty companies. Our team spent hours reviewing each home warranty company. We examined many factors, but mainly focused on the following:
Home warranty plans and options
Pricing
Reputation and trustworthiness
Customer reviews
Pros of Home Warranties
Peace of Mind
One of the major benefits of a good home warranty is peace of mind. A home warranty can bring some real financial security against unexpected home repairs. While getting your home in ideal shape can be tough, maintaining that level can be even more stressful. A good warranty coverage can cut away a big chunk of that worry.
Convenience
One of the biggest problems people can encounter when faced with unexpected breakdown at home is finding good help. But a home warranty also reduces some of that stress, as your provider can provide you with a relevant licensed expert within their network.
Potential Savings
In many cases, standard home repairs – such as a new boiler, for example – can be a lot cheaper if replaced under warranty. While home warranties can’t guarantee savings, chances are you will see the benefits speak for themselves over time.
Transferable
Many home warranties are transferable, meaning you could carry your plan to a new home if you decide to move. Be sure to check whether transferability is a feature of any warranty before signing if that’s important to you.
Cons of Home Warranties
Wait Times
Unfortunately, wait times for claims can sometimes keep you waiting. If you need a quick fix or emergency repairs at home, you may have to wait longer than you would like. One thing that can help here is looking for a provider that provides an online claims process. This is because online claims are often processed faster than those done over the phone.
Coverage Exclusions
Home warranties don’t cover everything, and it can be hard in an emergency to remember your exact coverage limits. It’s important to read the details carefully before signing up, and put a plan in place if you need work that falls outside your warranty coverage.
Cost
Home warranty coverage isn’t cheap, especially if you want to secure protection across your property. You won’t necessarily be covered by service fees, even if you choose a plan with a high service fee. And of course, some maintenance and repairs can come with further costs on top of your plan. These high costs can make it difficult to discern whether a home warranty is the right thing for you.
Other Home Warranty Companies to Consider
Here are a few other home warranty companies that didn’t make our top 5 that you may still want to look into.
Like so many things in our lives, a home warranty is something that we don’t often think about until we absolutely need it. Sure, you have home insurance, maybe even flood insurance, but that only covers certain situations.
Homeowners Insurance
Homeowners or renters insurance can cover damage to your home from things like fire, theft, storms, and some natural disasters. In addition to your homeowners insurance plan, you should choose to purchase a home warranty to protect your belongings in a way that insurance lacks.
If you’ve ever purchased a large appliance, a computer, or even a television from a retailer, then you’re probably familiar with the concept of a warranty.
However, those are warranties sold at the time of purchase and cover only one product. The benefit of home warranty protection is that it can cover every product in your home and more.
Choosing a Home Warranty Plan
What a home warranty plan covers will depend on the plan you choose, and there are many to choose from. A home warranty can cover anything from your microwave oven to your plumbing and your electrical systems.
Deciding which plan is right for you will determine what items and systems it covers and how much it will cost. Typically, home warranties charge either a small monthly or annual fee that can save you a lot of money in the long run.
How to Choose the Right Home Warranty
Choosing the right home warranty is key. Let’s run through all the details you need to consider before making your decision.
Determine Your Coverage Needs
At the very least, it’s important to get at least an idea of what sort of coverage you need. Take the time to decide which items in your home you want to protect before comparing offers. You’ll find plans that cover appliances, home systems, and plans that cover both.
Compare Quotes
It’s worthwhile to shop around. Try to acquire at least three different quotes from plans that you’re genuinely interested in. And use this time to also prioritize clearing up any questions you have about the policies you’ve been offered.
Don’t forget to pay close attention to the various prices you’ll see for service call fees. Some companies are much more competitive than others, and some even offer a service fees range which you can choose from depending on your needs and budget.
Review Sample Contracts & Liabilities
The next step is to review any sample contracts carefully. You’ll want to identify the limitations and exclusions in the contract, especially.
Furthermore, be sure to double-check cancellation policy just in case you decide your warranty isn’t working for you later on.
Check Reviews
Finding the best home warranty company for you will require some further research. You can read customer reviews online to find a company that provides great customer service as well as competitive plans.
Be sure to look out for any record of previous legal action taken against the company, too.
Home Warranty FAQ
What is a home warranty?
A home warranty is a type of service contract purchased to cover breakdowns, repairs, and replacements of home appliances and systems. Home warranties are designed to cover normal wear-and-tear damage on covered items and systems.
When a covered item breaks down or otherwise requires attention, you file a claim with your warranty provider. They then send a licensed technician to your home to assess the issue. Instead of paying for the full cost of the repair, being under warranty generally means paying only a small service fee for necessary repairs. The price of service fees varies between providers.
Home warranties are popular because they offer homeowners maintenance coverage and emergency repairs without having to rely on savings. The home warranty market today is huge and can provide terms for homes and budgets of many shapes and sizes.
What does a home warranty cover?
Home warranties can cover a whole range of systems and appliances within your home. You can decide how much you want to spend and determine what items will be covered by your home warranty.
Most home warranty companies break down their offerings into good, better, and best options. The good option, and least expensive, is one that covers most if not all of your appliances.
Major Home Systems
More expensive on an upfront basis are plans that cover major home systems. These home warranty plans cover the systems within your home. If you’re renting, this may not be of concern to you. However, if you own your home, you know that a plumber or electrician can cost a lot more than replacing your refrigerator.
If you’re less concerned with appliances and worried about what keeps your home humming along, then you may want to consider a system plan.
Appliances
Appliances like your microwave, washer and dryer, dishwasher, and often a lot more are covered by the best home warranty companies. These are great options for those who are renting or want to spend the least amount of money.
Systems & Appliances
The most expensive plans, of course, offer the most coverage. The best plans cover both systems and appliances. So while they’re the most expensive, they’re also the best value. Covering your systems and appliances together will typically save you around 20% to 30% of your total bill.
Basic plans from the best home warranty companies will cover the majority of systems and appliances in your home but don’t cover everything. If you have a pool, for instance, you may have to choose additional coverage.
Some home warranty companies even allow you to add coverage to cover your homeowners’ insurance deductible. Combining appliance and system coverage may also include these additions.
There are exclusions to what a home warranty will cover. Unfortunately, no plan is a blank check to have every item in your home replaced. These are repair plans and not replacement plans.
What is not covered by a home warranty?
The extent of your warranty coverage will vary greatly between companies and plans available. Having said that, however, here is a list of the ideas that are usually not covered by a home warranty:
Structural issues, paint and flooring
Commercial-grade equipment or systems
Pre-existing conditions
Rust, corrosion and sediment problems
Improper maintenance, installation, design, or manufacturer defect
Detection and removal of asbestos and mold
Building and zoning code violations
How much does a home warranty cost?
Home warranty pricing varies greatly depending on the coverage you choose, the home warranty company, and the area in which you live. In general, though, if you’re just covering appliances, expect to pay around $30 a month.
If you’re looking for only system coverage, you’ll probably pay around $35 a month. However, if you combine your coverage to include both systems and appliances, expect to pay around $45 per month.
Adding things not covered by a typical home warranty plan can also increase your monthly bill. If you have an atypical appliance or system, it’s possible that basic plans do not cover it. Not everyone has a swimming pool, a septic tank, a whirlpool tub, or a spa.
Check with your individual plan to ensure that all systems and appliances you want to have covered are actually included. If they aren’t, see if you can add them separately.
Service Fees
In addition to your monthly fee, you’ll also need to pay service fees for a service call. This cost can vary greatly.
The best home warranty companies offer plans that will cost you around $50 to $125 per repair. This is based on the home warranty company, the plan, and the item that needs to be fixed. While this may seem like a lot, consider the cost of the average repair without a warranty.
What can you expect to pay without a home warranty?
The average repair cost of a refrigerator is $275 to $325. The igniter on an oven or range may only cost $110 to $200 to repair, but a control board could cost you more than $260.
Replacing a rubber gasket on your washer will set you back between $200 to $300. These expenses can quickly add up compared to the fee home warranty companies charge for a visit.
Bottom line: They’ll address the issues with your current item but won’t give you a new one.
Pre-Existing Conditions
Pre-existing conditions are not covered either. Unfortunately, if one of your major appliances breaks, you can’t just sign up for coverage and expect to have it fixed.
Most home warranty companies will cover an unknown pre-existing condition. However, you can’t have an appliance covered if you or the home warranty provider knows that it’s already broken. This is why it’s a good idea to think about purchasing home warranty coverage before your appliances break.
Coverage Waiting Period
Most companies impose a 15 to 30 day waiting period before coverage can begin. There are, however, exceptions to this rule. For instance, if you have a home warranty that is ending soon, you may be able to begin on the date your coverage stops.
It’s important to read the fine print of your service contract. Each home warranty company will have very specific coverage details.
While all will most likely cover your refrigerator, not all of them will cover wear and tear on the gasket that seals it. Typically, the more expensive the plan, the more it covers, but this is not always the case.
What is the process for having an item repaired?
When something breaks, especially if you have a home warranty, you’ll want it fixed as quickly as possible.
Going without a microwave for a week or two may be acceptable, but if it’s your refrigerator, you may not be so patient. When an item malfunctions or breaks, you’ll need to contact your home warranty company’s customer service and explain the issue.
Make sure you report the problem as quickly as possible. The faster you make the call, the faster you’ll get an appointment and have your issue resolved.
Independent Contractors
The home warranty provider will most likely assign an independent contractor to inspect and repair the item. Obviously, system repairs can take longer and be more labor-intensive.
For example, replacing a part on your furnace will be a lot easier than repairing electrical wiring or plumbing inside your walls.
Depending on what is wrong, the contractor may have to order parts or return with specialized equipment. You’ll be required to pay a service fee for each item you wish to have repaired. However, the contractor should ensure that the item returns to working order.
Workmanship Guarantee
Once you’ve had an appliance or system repaired, that item is covered under a workmanship guarantee. Think of it as a warranty within your warranty.
The home warranty provider guarantees the parts and labor of that particular repair for a specified amount of time. This is usually around 90 to 180 days after the repair. So, even if you cancel your plan, they will still cover the repair during that time.
Who should pay for a home warranty?
Many times the seller will buy a home warranty to make the purchase of the home more appealing. Sometimes a real estate agent will even purchase a home warranty as a courtesy to the clients they’re representing. However, buyers, sellers, real estate agents, and current homeowners can all buy a home warranty. It’s also important to note that buying a home warranty can be done at any time, before or after closing.
What should you look for in a home warranty company?
A home warranty can save you a lot of hassle and headaches, not to mention money, down the road—as long as you do your homework and think it through.
A home warranty covers many things that homeowners insurance does not. Having peace of mind knowing that costly home repairs won’t spring up unexpectedly is a great feeling.
Choosing the right type of coverage for you is the next step. When you think about the type of coverage you want, think about the items you want to protect in your home.
Renters
If you’re just renting, then plumbing and electrical work is not a concern for you. Your homeowners insurance should cover things like theft and fire, but you still want to be covered when something breaks that you actually own. Choosing an appliance plan is probably the right option for you.
If you live in an older home that you own, a more comprehensive plan may be the right choice for you. It’s comforting to have your home inspected before purchasing, but things can still go wrong. You can avoid costly maintenance as long as you plan ahead.
Are home warranties worth it?
The answer to this question will depend largely on your unique circumstances. Two of the biggest factors are the age of your home and the quality of your appliances. In addition, your own ability and comfort with repair and maintenance is a factor.
Almost every home appliance and system will eventually require significant repair or even replacement. Depending on your own DIY skills, you might be comfortable taking responsibility for most repairs. Others might want more comprehensive coverage. But even still, there could be plenty of reasons why you would prefer to have a home warranty.
How do I cancel my home warranty?
Your first step should be to review your contract and make sure you understand the cancellation policy. Most companies will charge a cancellation fee that can range from 5% to 10% of the outstanding fee.
Thereafter, you can contact the company and tell them you’re considering cancelling your warranty. If possible, try to speak to a sales rep with whom you’re familiar.
Some companies require you to send a written notice of termination. Remember to cancel any automated payments from your credit card or bank account, if necessary. It might also be a good idea to request a written confirmation of the cancellation for your records.
Which home warranty company has the lowest service call fee?
Service call fees can vary widely between companies, but it’s important to try to find the most competitive service call fee available to you. Service fees generally range from $50 to $150 per service call.
The trick with finding a competitive service fee call is making sure you don’t sacrifice the quality of service calls. Some of the top-rated home warranty companies charge a higher service fee. However, it could be worth it to have the security and confidence of quality home service.
Final Thoughts
To find the best home warranty company, you will need to read the contract thoroughly. Every company that you investigate will have a contract. In that contract, they’ll spell out exactly what they do and do not cover.
They’ll also explain the cost, who will fix your items if they break, and more. Comparing two or more home warranty companies can give you a sense that you’ve made the right decision. Always make sure you do your homework.
Furthermore, check to see if a home inspection is required before qualifying for a home warranty with a specific company. Many don’t require this extra step, but it’s wise to be prepared in case they do. You definitely want to consider both cost and convenience as part of your ultimate decision.
Full Reviews of Home Warranty Companies
Looking for more options? Check out our other home warranty reviews below.
If you rent, rather than own, your home, you’re off the hook for homeowners insurance. But you may still need or want renters insurance, which can help cover your assets in the event of a calamity.
Like all other forms of insurance coverage, choosing a renters insurance policy involves choosing a deductible, which will have an effect on your overall policy cost.
Let’s learn more about how a renters insurance deductible works and how to choose one that’s right for your circumstances.
What Is a Renters Insurance Deductible?
If you have renters insurance and wind up needing to file a claim, the insurance company will still expect you to pay some of the cost. That out-of-pocket expense is called your deductible, and is separate from the premium you pay on a regular basis to keep the policy active.
For example, say you have a renters insurance policy that covers up to $20,000 worth of your belongings in the event of a covered loss. If your deductible is a flat $500, you’d pay $500, and the insurance company would pay $19,500 toward replacing your belongings.
Your deductible might also be calculated as a percentage of your property coverage. So in this example, if your deductible is 2%, you’d pay $400 (2% of $20,000) and the insurer would pay out $19,600.
Your premium, on the other hand, is the amount you pay monthly or annually in order to support the policy. In the case of renters insurance, that might be about $200 a year, or around $20 or less a month. 💡 Quick Tip: Online renters insurance can cover your belongings not just at home but also in your car and on vacation.
Choosing a Renters Insurance Deductible
You may be happy to know that you have some agency when it comes to choosing your renters insurance deductible. While many policies offer flat deductible options of either $500 or $1,000, certain companies do offer lower or higher amounts. Occasionally, you may even find a program available with a $0 or 0% deductible, which means you wouldn’t pay anything out of pocket if you were to make a claim.
Paying less during a time of loss probably sounds like an unmitigated good thing. But there is a bit of a catch. Generally speaking, the lower your deductible, the higher your premium, which means you’re paying more on a regular basis for a benefit you might get if a loss occurs.
On the other hand, if you hedge your bets and go for a high deductible, your regular premium payments will be lower — but you’ll be on the hook for a lot more if you do need to file a claim.
Recommended: What Does Renters Insurance Cover and How Does it Work
How Does Your Renters Insurance Deductible Affect Your Premiums?
While the inverse relationship between deductibles and premiums is fairly standard, other factors do play into your specific renters insurance costs.
For example, your insurer may cut you a break if you have certain security equipment installed, such as an alarm system or smoke alarm. On the other hand, if you live in what’s deemed a high-risk area or your credit score could use some work, your available coverage options may be more expensive, even if you choose a high deductible.
Renters Insurance by State
Because different states have different risk levels, both for criminal activity and natural damage, the average cost of renters insurance varies depending on what state you’re in. Here are the average monthly renters insurance premiums by state, per data from the Zebra:
• Alabama: $23
• Alaska: $15
• Arizona: $20
• Arkansas: $26
• California: $18
• Colorado: $17
• Connecticut: $24
• Delaware: $21
• District of Columbia: $20
• Florida: $21
• Georgia: $22
• Hawaii: $20
• Idaho: $16
• Illinois: $20
• Indiana: $28
• Iowa: $14
• Kansas: $21
• Kentucky: $17
• Louisiana: $38
• Maine: $12
• Maryland: $19
• Massachusetts: $18
• Michigan: $22
• Minnesota: $13
• Mississippi: $26
• Missouri: $24
• Montana: $19
• Nebraska: $16
• Nevada: $17
• New Hampshire: $14
• New Jersey: $19
• New Mexico: $19
• New York: $26
• North Carolina: $23
• North Dakota: $13
• Ohio: $18
• Oklahoma: $23
• Oregon: $16
• Pennsylvania: $19
• Rhode Island: $24
• South Carolina: $18
• South Dakota: $14
• Tennessee: $19
• Texas: $32
• Utah: $14
• Vermont: $9
• Virginia: $18
• Washington: $14
• West Virginia: $24
• Wisconsin: $14
• Wyoming: $11
Keep in mind that your specific monthly price will vary further based on your city and even your neighborhood, as well as many other factors. Check with your insurer for actual insurance premium prices available to you.
Recommended: Why Do Landlords Require Renters Insurance?
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Renters Insurance Overview
Renters insurance can be a truly valuable tool if you suffer a loss as a renter. While it doesn’t cover the structure of your home the way homeowners insurance does — the building’s owner is responsible for those costs — renters insurance does cover your belongings in case of damage or theft. It also covers personal liability costs in the event that someone is injured while at your home and sues you.
Some landlords require renters insurance, while others don’t. But for most renters, it’s a good idea to at least consider it, especially since it’s usually pretty affordable. (Many renters insurance programs cost less than $200 per year or about $15 to $20 monthly.)
Do keep in mind that renters insurance, like all types of insurance coverage, doesn’t cover everything.
What Does Renters Insurance Cover?
Generally, renters insurance offers coverage in the following four categories:
• Personal property: This covers your possessions.
• Personal liability: This would take care of the medical or legal fees you might incur if someone is hurt while at your home.
• Loss-of-use or additional living expenses: This covers the money you’d need to spend to find yourself a place to stay and food to eat if your home was, for some reason, rendered unlivable.
• Additional coverages: These may be purchased to cover items and services that wouldn’t otherwise be eligible for coverage on your policy (such as lock replacement).
Keep in mind also that certain high-value categories of items may have coverage limits, though these can often be exceeded if you purchase a separate rider or endorsement for them. These categories may include cash, jewelry, watchers, fur clothing, and firearms. 💡 Quick Tip: It’s important to create an inventory of your personal possessions in case you ever need to file a renters insurance claim. One easy way to do that is to walk through your home and photograph all your belongings — especially anything of value.
The Takeaway
Renters insurance is a kind of insurance that can cover your belongings and personal liability if you’re a renter. Like other forms of insurance, a deductible likely applies. The lower the deductible you choose, the higher your premium is likely to be.
While insurance isn’t anyone’s favorite bill to pay, it’s the kind of thing you’re grateful for when you do turn out to need it.
Looking to protect your belongings? SoFi has partnered with Lemonade to offer renters insurance. Policies are easy to understand and apply for, with instant quotes available. Prices start at just $5 per month.
Explore renters insurance options offered through SoFi via Experian.
Photo credit: iStock/Edwin Tan
Insurance not available in all states. Experian is a registered service mark of Experian Personal Insurance Agency, Inc. Social Finance, Inc. (“SoFi”) is compensated by Experian for each customer who purchases a policy through Experian from the site.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
A standard renters insurance policy typically covers your personal belongings should they be damaged, destroyed or stolen. Renters insurance also covers liability in case someone is injured or someone else’s property is damaged, as well as any medical payments. Lastly, it can pay for additional living expenses should your place become uninhabitable.
So, how does renters insurance work? Let’s talk about what renters insurance is, the specifics of what it covers, and how much it might cost to hop on a policy.
Renters Insurance Basics
Renters insurance offers financial protection to tenants in case anything were to happen to their personal property and in the instance of legal liability.
If you’re a renter, you may think that your landlord will foot the bill should there be a break-in and some of your belongings get stolen, or if there’s a fire in your apartment building. While a landlord might have insurance in place to cover the building, their insurance won’t cover your items should they get damaged or stolen, or pay for additional living expenses should you need to temporarily move out while your unit undergoes repairs. Rather, these are the types of things that renters insurance covers.
While renters insurance offers similar coverage to homeowners insurance (aside from covering the building, which is the landlord’s responsibility), it is generally much less costly. Some landlords require renters insurance, but not all do. 💡 Quick Tip: Online renters insurance can cover your belongings not just at home but also in your car and on vacation.
What Is Covered by Renters Insurance?
In a nutshell, standard renters insurance covers four main areas:
• Personal possessions
• Liability
• Living expenses
• Medical payments
Let’s take a closer look at each area.
Personal Property Damage
Renters insurance will cover your personal belongings if they are lost or stolen from common incidences such as:
• Theft
• Fire
• Smoke
• Lightning
• Vandalism
• Explosions
• Water-related damage from utilities on the property
• Windstorms
• Any other disasters, risks or other events listed in your policy
As mentioned before, unlike homeowners insurance, a standard renters policy typically doesn’t provide financial protection and pay for repairs to the actual structure of the building in which you live.
Renters insurance also will not cover damage to personal property during an earthquake or flood, but you can get add-on insurance or a separate policy altogether so that both are covered. If you get comprehensive renters insurance, damage and destruction from hurricanes and storms can be covered, but this type of policy usually costs more.
Liability
A standard renters insurance policy will also protect you financially should you, a family member or, in some cases, a pet cause injury or damage to other people or to their personal property. It could cover the costs of lawsuits, up to the limit of the policy, and the expense of repairing or replacing another person’s property or belongings if you are at fault.
However, it won’t replace your personal belongings or property should you, a member of your family, or your pet cause damage to your own property.
For example, let’s say you’re walking your dog, and your dog has a run-in with another canine. Chaos ensues, and your dog damages a neighbor’s fence. In that case, your renters’ insurance policy will pay to replace the fence. On the other hand, if your dog is chasing a squirrel while on her leash and tears up your mailbox, you’re out of luck. Your renters insurance policy won’t cover that.
Living Expenses
Should you become unable to live in your home and need to temporarily move out due to a covered natural disaster like a tornado, or another incident or event like damage from a fire or a storm, a standard renters insurance policy can cover the cost of additional living expenses.
This can include costs such as meals out and accommodations. It could also pay for pet boarding, the cost of doing laundry outside of your home, and storage costs. What’s covered would be based on your normal living expenses and lifestyle.
Medical Payments
Medical payments are covered under the liability portion of your insurance policy. If someone were injured in your home — say a delivery person slips and falls on your premises or your dog bites a neighbor in your apartment building — your policy can cover medical bills or funeral expenses up to a certain amount. On the other hand, if you, your family member, or your pet were injured, renters insurance would not cover that.
Unlike the liability portion of a renters insurance policy, medical payments coverage will pay for medical bills no matter who is at fault.
Recommended: Choosing a Renters Insurance Deductible
How to File a Claim
Need to file a renters insurance claim? Here’s the general process you can expect to follow:
1. Document the damage or loss: To file a renters insurance claim, you’ll first want to gather as many details about the incident as possible, including what exactly happened, when and where it happened, who was involved and what was damaged or taken. Take detailed notes and photos.
2. Tell your landlord: Next, notify your landlord. That way, if there’s any structural damage to where you live, they can handle it on their end.
3. File a police report if necessary: If there was damage to your property or loss of items due to burglary, theft, vandalism or an incident with ill intent, you’ll want to file a police report.
4. Reach out to your insurance company: You’ll then want to reach out to your insurance company and file a claim. Generally this must be done within a certain timeframe, such as two or three days. You’ll typically need to provide your policy number as well as all of the details and supporting evidence you’ve gathered. This will help the insurer to gauge what will and won’t be covered. Often, someone will come by to assess the damage.
5. Make any updates if needed: If there were any unexpected or additional costs along the way, such as staying at a short-term rental home while your place gets repaired, meals out because you couldn’t use your kitchen or personal possessions you later realized were damaged or missing, then you can update your claim along the way.
💡 Quick Tip: It’s important to create an inventory of your personal possessions in case you ever need to file a renters insurance claim. One easy way to do that is to walk through your home and photograph all your belongings — especially anything of value.
How Much Is Renters Insurance?
Average annual cost of renters insurance: $15-$30 a month
According to the most recent data from National Association of Insurance Commissioners (NAIC), the average cost of a renters insurance policy is $15 to $30 a month. However, the cost can vary depending on a handful of factors, including:
• Where you live
• Type and amount of coverage
• The size and construction of your building
• Your deductible
• Security and prevention measures in place
• Any discounts
• Your claims history
Recommended: Most Affordable Renters Insurance for Apartments
The Takeaway
While not required by your landlord, renters insurance can help cover your personal belongings, additional living expenses and liability should there be an incident, disaster, or theft where you live. To figure out how much coverage you need, it’s a good idea to take inventory of your items.
Looking to protect your belongings? SoFi has partnered with Lemonade to offer renters insurance. Policies are easy to understand and apply for, with instant quotes available. Prices start at just $5 per month.
Explore renters insurance options offered through SoFi via Experian.
Photo credit: iStock/humanmade
Insurance not available in all states. Experian is a registered service mark of Experian Personal Insurance Agency, Inc. Social Finance, Inc. (“SoFi”) is compensated by Experian for each customer who purchases a policy through Experian from the site.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Like human health insurance, pet insurance helps cover unexpected medical expenses for our furry friends. One crucial component of that coverage is your pet insurance deductible. Understanding how deductibles work can help you choose the right plan for you and your pet.
What is a pet insurance deductible?
A pet insurance deductible is the amount you pay out of pocket for your pet’s veterinary care before the insurance company starts covering costs. It’s a set amount you choose when you purchase your policy.
For example, if your deductible is $250 and your pet’s vet bill is $1,000, you’ll pay the first $250, and the insurance company will help cover the remaining $750, depending on your policy’s terms. If you have an annual deductible, you’d have to pay this amount only once per year.
How do pet insurance deductibles work?
A deductible is a way for insurance companies to share the cost of vet bills with pet owners. Once you’ve met your deductible, the pet insurance company will pay any remaining portion of your vet bills that qualify for coverage.
In most cases, you’ll need to pay the full vet bill yourself and then file a claim for reimbursement with your pet insurance company. If there are any expenses insurance doesn’t cover, like taxes or waste disposal, the company will subtract them along with your deductible before reimbursing its share of the bill.
Raising or lowering your deductible will affect how much you pay for pet insurance. Selecting a higher deductible usually lowers your insurance premium but means you’ll pay more out of pocket when your pet needs care.
🤓Nerdy Tip
The amount you pay for routine care like vaccines or wellness visits usually doesn’t count toward your deductible. Even if you have separate coverage for preventive care, the deductible typically applies only to covered illnesses and accidents.
Types of pet insurance deductibles
There are two main kinds of deductibles: annual and per condition.
Annual pet insurance deductible
An annual pet insurance deductible is a set amount you pay each year before insurance starts covering your vet bills. You pay this deductible only once per policy term. It doesn’t reset until your policy renews, regardless of how many claims you make. This is the most common type of pet insurance deductible.
Say you have a $300 annual deductible. If your pet has a minor accident and the vet bill is $150, you pay the entire amount since it’s less than the deductible. (Note that you’d still want to file a claim so your pet insurance company can apply the amount you’ve paid toward your deductible.)
Later in the same year, your pet gets sick and racks up a $500 bill. You’d pay the remaining $150 of your deductible, and the insurance would cover a portion of the remaining $350, depending on your policy’s terms.
If your pet has more health issues within the same year, the insurance would continue to help cover the costs since you’ve already met the deductible. But once your policy renews, your deductible will reset and you’ll need to pay it again before receiving more insurance coverage.
Per-condition deductible
With a per-condition deductible, you pay a set amount out of pocket for each illness or condition your pet has. This type of deductible may also be called a per-incident deductible.
For example, if your pet gets an ear infection and later breaks a leg, you would pay your deductible twice: once for the ear infection and once for the broken leg.
After you pay the deductible for a specific condition, insurance helps cover additional costs for that condition over the life of your pet. This is beneficial if your pet develops a chronic problem that needs ongoing treatment each year. Once you meet the deductible for that condition, you don’t pay it again, whereas you’d pay it each year with an annual deductible.
The downside is that if your pet needs care for an unrelated problem later in the same year, you’re stuck paying the deductible all over again.
Did you know…
Very few pet insurers offer per-incident deductibles. Most have annual deductibles, so pet owners have to meet the limit only once per year.
Deductibles vs. copays and reimbursement rates
Deductibles, copays and reimbursement rates are different parts of how you and your insurance company share costs. Once you’ve paid your deductible, the insurance company uses the copay and reimbursement rate to calculate how much of the remaining vet bill it will cover.
A copayment, or copay, is your share of the vet visit cost after you’ve met your deductible. The reimbursement rate is the percentage of the bill the insurer will pay. For example, if your policy has a 70% reimbursement rate, that means your copay is 30%.
To see how these policy limits work together, imagine you have a $200 deductible, a 20% copay and an 80% reimbursement rate. If your pet’s vet bill is $1,000, you’d pay the $200 deductible first. Then, of the remaining $800, the insurance would pay 80% ($640), and you’d pay the 20% copay ($160). So, for a $1,000 vet bill, you’d pay $360, and the insurance would cover $640.
In general, a policy with a higher reimbursement rate will be more expensive, but the insurance company will cover more of your vet bills.
🤓Nerdy Tip
In addition to deductibles, copays and reimbursement rates, most pet plans have an annual coverage limit, which is the most your insurer will reimburse for vet care in a 12-month period. This limit is often customizable, and you may have the option to choose unlimited coverage. Your annual coverage limit is another factor that can influence the cost of pet insurance.
How to choose a pet insurance deductible
The goal when choosing a deductible is to strike a balance between good coverage and manageable out-of-pocket expenses.
First, determine how much you can comfortably pay for vet care. Imagine if your pet needed to visit an emergency vet tomorrow. How much of a deductible could you afford to pay? You shouldn’t struggle to cover your deductible in an emergency, so choose an amount that fits your budget.
Remember, the deductible is just one part of your policy. Consider it alongside copays, reimbursement rates and annual coverage limits to get the full picture. The more costs you take on yourself, the less you’ll pay for insurance, and vice versa.
If you’ve had your pet for a while, looking at what you’ve spent in vet care over the past year may help you predict future costs.
Compare deductible options from popular pet insurance companies
Pet insurance company
Deductible options
$100 to $1,000 annually.
$100 to $500 annually.
$100 to $1,000 annually.
$250 to $2,500 annually.
$100 to $1,500 annually.
$100 to $500 annually.
$100 to $1,000 annually.
$100 to $500 annually.
$250 to $1,000 annually.
$0 to $2,500 annually.
$250 annually. (Other options may be available.)
$50 to $1,000 annually.
$100 to $1,000 annually.
$100 to $1,000 annually.
$0 to $1,000 lifetime per-condition deductible in most states; some states have no deductible.
At the start of every new year, people set goals. Many of the most common resolutions set during the new year are financial in nature. For instance, some people resolve to pay off their debt before the year ends. Others want to decrease their spending and save money.
If you’re one of those people who want to save money, decreasing your car insurance premium is one way to get closer to your financial goals. Here are seven hacks to help you save on car insurance this year.
1. Review Your Car Insurance Every Year
One of the simplest ways to reduce your insurance premiums is to shop around once a year. It may seem unnecessary, but comparing rates from a variety of insurance companies can be beneficial. Firstly, it gives you a sense of how much your car costs to insure on average. Secondly, doing your research lets you determine if you have the best car insurance for your budget.
Remember to compare quotes from at least three providers before making a decision. But what if your current insurer is the cheapest option?
2. Get Rid of Coverage You Don’t Need
Another way to decrease your car insurance costs is by dropping unnecessary coverage. In most states, drivers are legally required to have liability coverage and personal injury protection, or no-fault coverage. In states like New York and North Carolina, drivers must also have insurance that protects them against collisions with uninsured or underinsured motorists. Beyond that, rates vary by state and personal preference.
Types of Car Insurance to Consider
Liability Coverage: This coverage protects you against the costs of covering the medical bills of other drivers after an accident. Liability insurance may also reimburse you for damage to your car. If you don’t have a significant savings cushion or other assets to cover the cost of large claims, liability insurance will protect you financially in the event of an accident.
Collision Coverage: If you’re financing your vehicle, chances are the bank will require this coverage as well. Collision insurance will pay for damage to your car resulting from a collision with another vehicle. It does not cover car damage from potholes, broken windows, fire, or theft.
Comprehensive Coverage: This is like collision insurance, but it covers damage from non-collision incidents. The most common kinds of incidents are floods, vandalism, hitting an animal, or striking a non-moving object.
No-Fault Coverage: This type of insurance protects you against the medical bills of other drivers after an accident. Unlike liability insurance, your own insurer pays your claim; it then submits a claim to the other driver’s insurer. If you have this coverage, maintaining a high deductible can be beneficial because it reduces your premium.
As you review your vehicle insurance, make a list of your state-mandated coverage, bank-mandated coverage, and ones that make sense for your location. For instance, if you live in a town that is known for seasonal hurricanes, floods, or fires, dropping comprehensive insurance might not be the best idea. Consider working with an agent who is familiar with your area.
If your car is older, consider dropping collision and comprehensive insurance. Then, set aside an emergency fund that amounts to your car’s market value.
3. Ask Your Insurance Company about New Discounts
Your insurer may provide discounts for a variety of reasons. For instance, some insurers offer a “good student” discount for teens with good grades. Others may give discounts to drivers who are members of the military or attend certain types of college. If you are enrolled in an accredited driver’s safety course, contact your insurer about getting a discount for completing the class.
Save on Car Insurance by Paying Your Premium Annually
Payment methods can also affect your car insurance premiums. Most insurers offer a discount if you pay a year’s worth of premiums upfront. If you can’t afford an entire year’s worth of premiums at once, pay at least the minimum amount necessary to qualify for this discount.
4. Downsize Your Car
The most effective way to save money on car insurance is by driving a car that costs less to insure. The type of car you choose will depend on your budget and preference, but there are a few things to consider.
For instance, the cost of repairs and parts for some vehicles can be high. Secondly, there are insurance companies that offer discounts to drivers with hybrid cars or vehicles that use alternative fuel.
When you’re looking for a new vehicle, find a safe one with the lowest possible insurance rates. Talk with your insurer, and get online quotes from other car insurance providers to compare costs.
Related Read: What Credit Score Do I Need to Buy a Car?
5. Drive Safely to Save on Car Insurance
Driving safely is often underrated. If you’re a cautious driver, you might qualify for a reduced premium. When calculating your rate, insurance companies consider the following factors:
Age
Gender
The type of car
Your driving history
Improving your driving habits could save you money each month. Plus, it’s safer for everyone on the road. If your current vehicle doesn’t have an accident history, you might also want to consider increasing your deductible, which can save you money.
6. Increase Your Car Insurance Deductible
If you drive safely, you could lower your monthly premium by raising your deductible. Increasing your deductible from $200 to $500, for example, will decrease your monthly premium. And since you know how much your deductible is ahead of time, you can set aside the amount in an emergency fund.
7. Consider Usage-Based Programs
Another way to save on car insurance is by participating in usage-based programs. With this type of coverage, you put a device in your car that records your mileage and driving habits. This data is then sent to your insurer, who can use it to determine how much you should be paying for coverage. Among the common usage-based options are:
Pay-as-you-drive: This program charges you for the miles you drive. Your insurer will typically take mileage into account when calculating your premium.
Pay-how-you-drive: With this program, you pay for your insurance based on safe driving behavior. In some cases, your insurer might offer discounts if you’re an ideal driver.
Takeaway: Saving Money on Car Insurance
There are plenty of tactics to help decrease your monthly insurance costs if you take the time to assess your habits and your vehicle insurance needs. Once you know what must stay and what needs to go, contact your insurance company to make the necessary adjustments.
Buying insurance coverage helps keep you protected from the full financial fallout of an accident or injury. But even with insurance, you’ll probably still be responsible for some costs when you file a claim.
An insurance deductible is the amount of money the insured party is responsible for at the time of loss or damage: it’s the cost you have to pay before the insurance company pays out its share.
Here’s what you need to know about the different types of insurance deductibles and other insurance-related costs you may face.
What Is a Deductible?
When you buy insurance, you’ll encounter several different costs depending on the type of coverage you’re purchasing. These may include monthly premiums, copays, out-of-pocket maximums, and possibly others.
The vast majority of insurance policies, whether they’re auto, health, or homeowners, carry a deductible. So what is a deductible, and how does it work?
The deductible is a sum of money you, as the insured party, are expected to pay toward a loss. Another way to think about it: It’s the amount the insurance company deducts from the total claim and asks you to pay.
For instance, say you get into a car accident in which you sustain $8,000 worth of damage and you have a $1,000 deductible. When you file your claim, you’ll pay $1,000 toward repairs and the insurance company will cover the remaining $7,000 (or up to whatever limits are laid out in your insurance contract).
Your deductible can be a fixed dollar amount or a percentage, depending on your individual plan and the kind of insurance policy you’re talking about. Homeowners insurance, for instance, is commonly offered with deductibles calculated as a percentage of the property’s total insured value.
It’s important to understand that your deductible is separate from your premium, which is the amount of money you pay each month in order to keep your insurance policy active.
Also remember that you may also be responsible for other insurance-related expenses, like copays or coinsurance, so always read the fine print carefully. 💡 Quick Tip: If you have a mortgage, a homeowners policy may be required by your lender. Surprisingly, unlike auto insurance, there is no legal mandate to carry insurance on your home.
Copay vs Deductible
With certain types of insurance — primarily health insurance products — you may be required to pay a copay each time you go to the doctor’s office or receive a covered service. This copay is separate from your deductible, and, generally, your copay doesn’t count toward your deductible amount.
As with other types of insurance, the health insurance deductible must be paid by the insured person before the insurance company begins its coverage. However, individual health plans may cover certain services, such as regular check-ups, even before the deductible is paid in full.
Here’s an example: Say you twist your ankle and visit your doctor, who orders an MRI. If your copay is $25, you’ll pay $25 at the office before or after you see your physician. If the total cost of the doctor’s care and imaging services is $1,000 and you have a $500 deductible, you may still be responsible for the full $500. Any copays you’ve paid along the way won’t be subtracted from your deductible.
Some plans may carry a coinsurance cost rather than a copay. The two are similar, but not identical. Coinsurance is an amount you pay when you receive a medical service, separate from your deductible. Unlike copays, which are charged at a fixed dollar amount, coinsurance is calculated as a percentage of the total cost of the service. Your plan might even include both copays and coinsurance.
All insurance policies are different, and your individual costs and experience may vary depending on the services you’ve received and the specific coverage you have. You can consult your insurance paperwork or contact your insurer for full details on what’s covered in your plan.
Out-of-Pocket Maximums
Health insurance policies in particular are subject to federally mandated out-of-pocket maximums. This is the highest total dollar amount you’ll have to pay toward covered healthcare over the course of a single year, including both deductibles and copays.
The out-of-pocket maximum does not include the amount you pay toward your monthly premium, however. Nor does it include out-of-network services or services that your plan expressly does not cover.
For 2023, the out-of-pocket maximum for a Marketplace plan can’t be more than $9,100 for an individual or $18,200 for a family. In 2024, that limit rises to $9,450 for an individual or $18,900 for a family. (The maximum is allowed to be lower, however, so consult your plan paperwork for full details.)
Do You Want a High or Low Deductible?
When shopping for insurance coverage, you’ll likely have a range of options to consider, including varying deductible costs. And when it comes to figuring out whether you want a high or low deductible, the answer is: It depends.
Generally speaking, the lower your deductible, the higher your premium will be and vice versa. This makes sense when you think about it. If you have a low deductible, the insurer will have to pay out a higher amount when you incur a loss. So in exchange for the promise of covering most of the costs when a claim is filed, the company expects you to pay more up front in the form of a higher premium.
While choosing a higher deductible can help you save money over time since your monthly premiums will be lower, it also means you’re assuming more risk. If something happens and costs are incurred, you’ll be responsible for a larger share of those expenses.
On the other hand, choosing a lower deductible means you’ll likely pay a higher premium each month. But you’ll also have less to worry about if you do need to file a claim, since the insurance company will cover more of the costs (assuming that all the damages and expenses are covered under your policy).
As with so many other financial matters, what’s right for you comes down to a number of factors, including your risk tolerance, budget, and even your lifestyle. If you participate in extreme sports, for instance, and are at risk for catastrophic injuries, you might want to pick a health insurance policy with a lower deductible and higher premiums.
Recommended: How Much Is Homeowners Insurance?
Zero-Deductible Insurance: Is It a Thing?
You may see ads for zero-deductible insurance policies and wonder if they’re too good to be true. While zero-deductible insurance policies do exist, they usually carry higher premiums than policies that do carry deductibles, and you may also be responsible for a one-time no-deductible fee or waiver.
Furthermore, some insurance coverages are required by state law to carry a minimum deductible, particularly when it comes to auto insurance.
Before you sign up for any kind of insurance coverage, be sure to read the contract thoroughly to ensure you understand what costs you’re responsible for.
Recommended: What Does Auto Insurance Cover?
Types of Deductibles
There are many different types of insurance policies with deductibles on the market. Common ones include:
• Health insurance deductibles
• Auto insurance deductibles
• Homeowners insurance deductibles
• Renters insurance deductibles
• Life insurance deductibles
The deductible amount varies by type of insurance, company, and plan, among other factors. 💡 Quick Tip: Online insurance tools allow you to personalize your coverage for homeowners, renters, auto, and life insurance — all with zero paperwork.
The Takeaway
Purchasing insurance is an important — and sometimes legally mandated — step toward protecting yourself from the high costs of personal accidents, property damages, and medical bills. But most policies involve set costs, including deductibles. This is the portion of the claim the insured party is responsible for paying.
Whether you’re comparison shopping or switching from your current plan, it’s important to understand what your deductible will be. Having a full picture of all the costs involved can help you find coverage that fits your life and finances.
When the unexpected happens, it’s good to know you have a plan to protect your loved ones and your finances. SoFi has teamed up with some of the best insurance companies in the industry to provide members with fast, easy, and reliable insurance.
Find affordable auto, life, homeowners, and renters insurance with SoFi Protect.
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Coverage and pricing is subject to eligibility and underwriting criteria.
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All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
A fallen tree can significantly damage your home and other property. Homeowners insurance will likely cover the damage caused by the tree, but you may wonder if your policy will cover the cost of removing it. The answer is: It depends.
Does homeowners insurance cover tree removal?
If a tree falls for a reason covered by your policy, like strong winds or lightning, and damages your home, garage or other insured structures, your home insurance will likely cover the cost to remove the tree as well as the damage to your home.
There’s usually a limit to how much your insurance company will pay to remove debris, which includes fallen trees. This limit is typically around $500 to $1,000.
When doesn’t home insurance cover tree removal?
Home insurance won’t always pay for tree removal. Here are a few scenarios where you’re unlikely to have coverage.
No damage to property
If a tree falls as a result of snow, wind, hail or another covered event, but doesn’t damage structures such as your home or fence, you’ll likely be responsible for the cost of removing it.
One common exception is if the tree is blocking your driveway or a wheelchair ramp. In this case, your insurance may help cover the cost of removal.
Preventive tree removal
Home insurance normally won’t cover the cost of removing trees that pose no immediate threat to your property. This includes clearing sick or dying trees to prevent possible future damage. That’s considered part of your responsibility as a homeowner.
Events not covered by your policy
If a tree falls due to an event not covered by your policy, like a flood, earthquake or mudslide, you may need to pay for the removal out of your own pocket. It will likely not be covered by insurance.
How much does tree removal cost?
You can expect to pay between $200 and $2,000 for tree removal
. The exact price depends on the size of the tree, its location and job complexity. For example, trees under 30 feet may cost $200 to $450 to remove, while trees over 80 feet can cost $1,000 to $2,000 or more, depending on whether a crane is needed.
Even smaller trees can be expensive to remove if they’re near buildings, power lines or other structures. Similarly, trees with multiple branches or pest infestations can increase the total expense.
🤓Nerdy Tip
Weigh the cost of removal against your home insurance deductible, which is the amount you pay out of pocket before insurance covers the rest. If the cost of removing the tree isn’t much higher than your deductible, it may make sense to pay out of pocket instead of filing a claim. That way you can avoid premium increases or losing any claim-free discounts you might have.
Does home insurance cover damage caused by your neighbor’s tree?
If your neighbor’s tree falls onto your property and damages your home or another insured structure, like a garage or fence, you’ll typically need to file a claim with your own home insurance. Your insurance should cover the damage and removal costs, even if the tree was on your neighbor’s property.
If your neighbor’s tree was dead, diseased or poorly maintained and it falls on your property, your neighbor may be liable for the damages and removal costs. However, proving your neighbor knew the tree posed a risk before it fell can be a challenge. If you have proof that you informed your neighbor about the tree’s condition before it fell, it can strengthen your case. An example of proof would be a certified letter from a tree expert stating the tree needs to be removed.
Does homeowners insurance cover tree damage to your neighbor’s property?
If a tree on your property falls and damages your neighbor’s house, their insurance policy should cover the cost of repairing the damage. You shouldn’t need to file a claim with your own insurance.
That said, you could be responsible for the removal if your neighbor told you the tree was at risk of damaging their property and they have a paper trail to prove it. This could be considered negligence on your part.
What if a tree lands on your car?
Home insurance generally won’t cover a tree crashing onto your car. Instead, this type of situation falls under your auto insurance policy. If you have comprehensive auto insurance, it should cover the damage from the fallen tree. Comprehensive coverage pays for damage from non-collision events, like storms, falling trees, theft and vandalism. You may be responsible for the damage if you don’t have comprehensive coverage.
How to protect your home from tree damage
If you have trees on your property, these tips can help protect your home from damage:
Regularly inspect your trees. Look for signs of damage or disease, such as cracks, splits or dead branches. If you notice any issues, consider hiring a professional arborist to take care of the problem.
Trim your trees. Regular pruning can prevent branches from falling and damaging your home. Remove any dead or diseased branches, and trim trees so the remaining branches are a safe distance away from power lines and other structures. You may want to hire an arborist to trim branches near power lines.
Choose the right trees. Consider the size and location carefully when planting new trees. Ensure the tree is appropriate for the space and won’t cause damage to your home or other structures as it grows.
Your air conditioner is crucial, especially during scorching hot days. But what happens if your AC unit breaks down? Will your home insurance cover the cost to repair or replace it? Here’s what you need to know.
Does home insurance cover AC units?
Home insurance will cover your AC unit if it’s damaged by fire, lightning, vandalism, storms or other scenarios, or “perils,” your policy covers.
For instance, if a tree lands on your AC unit during a storm, your home insurance will likely cover the cost to repair or replace it. Similarly, if someone steals your AC unit, your insurance can help pay for a new one.
Your coverage also depends on what type of AC unit you have. Central air conditioning systems are typically covered under the dwelling portion of your home insurance policy because they’re attached to the home. Dwelling coverage is usually offered on an “open perils” basis, which means your central AC unit is probably covered unless it was damaged by an event specifically excluded from your policy.
However, if you own a portable or window AC unit, that likely falls under your personal property coverage, which pays for damage to movable belongings. Because personal property coverage is typically covered on a “named perils” basis, your policy may only cover damage to your window AC unit if it’s caused by a specific event named in your policy.
Insurance companies use precise language to describe what is and isn’t covered, so review your policy carefully and contact your carrier if you have questions about your coverage.
When does home insurance not cover your AC unit?
Home insurance typically won’t cover damage to your AC unit in these cases:
Wear and tear. Home insurance doesn’t cover damage caused by gradual wear and tear or aging. If your AC breaks down due to normal use over time, you’ll likely have to handle the repair or replacement costs on your own.
Lack of maintenance. Your insurer may deny your claim if the damage happened because you neglected your air conditioner’s regular maintenance.
Flood damage. Standard home insurance generally excludes coverage for damage caused by flooding, including damage to your AC unit. You’ll need separate flood insurance for that.
Mechanical breakdowns. Mechanical breakdowns usually aren’t covered under standard home insurance unless you’ve added equipment breakdown coverage to your policy.
Do you need equipment breakdown coverage for your AC unit?
Equipment breakdown coverage is an optional add-on to your home insurance policy that protects you financially against unexpected mechanical failures of essential household equipment, including your AC unit. It goes beyond standard home insurance by covering mechanical breakdowns that aren’t normally included in regular policies.
🤓Nerdy Tip
Think of it like this: Home insurance pays for AC unit damage due to fire, lightning, wind, hail and other covered perils. Equipment breakdown coverage pays for damage from sudden and accidental breakdowns caused by a faulty motor, circuit breaker or compressor.
How to file a claim when your AC breaks down
If your AC unit is damaged and needs repair or replacement, follow these steps to file a claim:
Document the damage. Take photos or videos of the damaged AC unit and any other affected areas to support your claim.
Decide if you want to file a claim. If your loss is covered by your policy, you now have to decide whether to file a claim. Take your home insurance deductible into consideration when deciding whether to file a claim, as it may be higher than the cost to repair the AC unit. Also consider the possibility that filing a claim may increase your premiums, which means you may not want to file a claim for a smaller payout.
Contact your insurer. If you decide to file a claim, you can usually do so online or over the phone. Be prepared to share photos, receipts and other documents. Keep copies of all of it.
Get an estimate. Ask a licensed contractor how much it will cost to repair or replace the AC unit.
Work with the adjuster. Your insurance company will assign an adjuster to your claim to assess the damage. Work with the adjuster to get your claim processed as quickly as possible.
Wait for payment. Once your claim is approved, your insurance company will provide payment for the repair or replacement of the AC unit. Follow up with your insurance company if you have any questions or concerns about the payment.