If you rent an apartment in Los Angeles, you may think that your landlord’s insurance will cover you in the event of a fire, storm or another disaster. And you’d be partly right: it would cover the actual building, including your unit. But your landlord’s policy won’t cover your personal belongings or liability if someone is injured in your apartment. For that, you need renters insurance.
America’s top-rated renters insurance
Policies starting at just $5/month
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In this article
The good news? Renters insurance is fairly cheap. In California, the average annual cost for a renters policy is only $182. We’ve taken a hard look at the companies offering renters insurance in Los Angeles and, using our evidence-based SimpleScore methodology, have selected the best renters insurance companies in Los Angeles.
The best renters insurance in Los Angeles
Best coverage options – Allstate
A major player on the national insurance stage, Allstate’s size benefits you through expanded coverage options and maximum financial stability.
J.D. Power Rating
2/5
AM Best Rating
A+
Standard & Poor’s
AA-
SimpleScore
4.2 / 5.0
SimpleScore Allstate 4.2
Discounts 5
Coverage Options 5
Customer Satisfaction 2
Customer Satisfaction 5
Allstate is the second-largest writer of homeowners and renters policies in the U.S. and has the chops to offer a variety of coverage options that allow you to customize your policy. Coverage such as scheduled personal property — which covers your high-priced belongings beyond the limits of your personal property coverage — make it a good choice if you have expensive electronics, art or other valuables. Allstate can also cover you with additional umbrella insurance or if your apartment is in a flood zone, supplemental flood insurance.
Best customer service – Lemonade
Although Lemonade is the new kids on the block, it has quickly earned a reputation for quality service and customer satisfaction.
J.D. Power Rating
5/5
AM Best Rating
N/A
Standard & Poor’s
N/A
SimpleScore
3.6 / 5.0
SimpleScore Lemonade 3.6
Discounts 1
Coverage Options 3
Customer Satisfaction 5
Accessibility 5
Lemonade has become popular very quickly, thanks to its low rates and easy-to-manage website. Getting a quote or filing a claim takes just seconds, and the company says you may have your check almost instantly if the claim is approved. All that user-friendly management has made Lemonade the top choice in J.D. Power’s 2020 Overall Customer Satisfaction Ranking for renters, rating it above perennial favorites such as Erie Insurance and Allstate.
Best for military families – USAA
Low prices, excellent customer service and rock-solid financial stability all make USAA a top choice for military families.
J.D. Power Rating
5/5
AM Best Rating
A++
Standard & Poor’s
N/A
SimpleScore
3.8 / 5.0
SimpleScore USAA 3.8
Discounts 2
Coverage Options 5
Customer Satisfaction 5
Accessibility 4
USAA may be the best insurance company you’ve never heard of — unless you’re in the military, in which case you know the company has a reputation for quality service and coverage. USAA’s rental insurance is only available to active and retired military members and their families, but if you fit that demographic, it should be your first stop when looking for the best renters insurance in Los Angeles.
Best claims management – Stillwater
Expect friendly service and quick claims management for renters insurance claims to Stillwater.
J.D. Power Rating
N/A
AM Best Rating
A-
Standard & Poor’s
N/A
SimpleScore
4 / 5.0
SimpleScore Stillwater 4
Disconts 3
Coverage Options 5
Customer Satisfaction N/A
Accessibility 4
Stillwater offers competitive rates for renters insurance in Los Angeles, which comes with a reputation for solid claims management. The Better Business Bureau gives the company an A+ rating, with customer reviews averaging 3.8 out of 5 — reviewers note the friendliness and professionalism of their agents and claim representatives. Stillwater offers a nice range of discounts for policyholders, including one for those aged 60 and over.
Best local insurer – Mercury
Like the Roman god the company is named for, Mercury provides fast and effective service for all your rental insurance needs.
J.D. Power Rating
N/A
AM Best Rating
A
Standard & Poor’s
AA-
SimpleScore
4.3 / 5.0
SimpleScore Mercury 4.3
Disconts 3
Coverage Options 4
Customer Satisfaction N/A
Accessibility 5
Mercury has been providing insurance for California residents since 1961. The company has an A rating with both Fitch and AM Best, indicating that it is financially stable and well-managed, and it was named one of America’s most trustworthy companies by Forbes magazine. You’ll find comprehensive coverage at Mercury, with a handful of discounts to lower your rate, and optional coverages that protect you from identity theft and more.
America’s top-rated renters insurance
Policies starting at just $5/month
Sign up in seconds, claims paid in minutes
Zero hassle, zero paperwork
Average annual premium, by company
Company
Average annual premium
Allstate
$162-210
Lemonade
$202-285
USAA
$168-204
Stillwater
$189-212
Mercury
$175-218
Choosing your provider
Whether you choose a large national insurer, like Allstate, or a smaller regional carrier, Like Mercury, you want the best possible insurance. How can you be sure to get it? A little research is all it takes to give you the info you need to choose wisely. You can start by asking your neighbors and friends who they like and visit the website for any company you’re interested in to see how easy they make it to do business with them.
[ Read: What Does Renters Insurance Cover? ]
Local carrier
Pros
They have the feet-on-the-ground knowledge of your local area.
They understand state insurance laws and regulations.
Generally, smaller companies offer high customer service from friendly, local employees.
Cons
May not be able to offer the discounts or coverage options that are standard with larger companies.
Not rated by consumer agencies such as J.D. Powers or Consumer Reports.
Websites are often bare-bones, without the ability to get an online quote or file a claim.
National carrier
Pros
Easy to evaluate them with national assessors like J.D. Powers and AM Best.
Tend to have good websites with tons of functionality and easy access.
Have the ability to offer extensive discounts as well as coverage extras that allow you to customize your policy.
Cons
With tens of thousands of policyholders, you may not get the personalized attention you would with a smaller company.
[ Read: Best Renters Insurance Companies]
Los Angeles minimum insurance requirements
Unlike car insurance, renters insurance isn’t a legal requirement in California. You may find, however, that your landlord requires it. And even if they don’t, it’s a good idea to consider it seriously. Depending on where you live in the city, you may be at risk of theft, vandalism, or damage from natural sources like storms or earthquakes. Consider carefully how much money you would need if you had to start over again from scratch. That’s a good starting point when considering the amount of Los Angeles renters insurance to purchase.
Flood
Coverage for flooding isn’t included in most renters insurance policies. To find out if you’re at risk of flooding, the FEMA Flood Map Service Center lets you input your address and see if you’re in a flood zone. If you have any reason to believe your apartment might flood, ask your insurance agent about supplemental flood insurance, which can be purchased through the government’s National Flood Insurance Program.
Hurricane
Hurricanes rarely hit California’s coastal regions. In fact, a “California hurricane” is the name of a tropical cyclone that travels up the coast — and that’s happened only twice since 1900. If the remnants of a tropical storm impact your apartment, you would be covered for any damage that was caused by wind. Damage caused by the flooding that often accompanies hurricanes would not be covered by a policy unless you had supplemental flood insurance.
Earthquake
Standard renters insurance policies do not cover earthquake damage. But that doesn’t mean you need to stay unprotected. Most insurers feature an endorsement, or add-on, that will cover earthquakes. The California Earthquake Authority offers insurance for renters, and it’s easy to get an online quote at its website. Plan on spending roughly $150-250 for an earthquake policy — money that’s well spent if it buys you peace of mind.
[ Read: Best Cities to Buy Rental Property ]
How much does renters insurance cost in Los Angeles?
The rate you pay for renters insurance will be determined by a number of variables, including the amount of rent you’re paying, your deductible and the value of your belongings. The average cost of Los Angeles renters insurance is roughly $195 a year, though your rate will probably differ. This is more than the California average of $182 and considers the fact that Los Angeles real estate is on the pricey side.
Keep in mind that there are things you can do to lower your insurance rate. One major factor, for example, is your deductible. The lower your deductible, the higher your premium rate will be. If you can handle a higher deductible — say, $1,000 or even more — you will get the best rates for renters insurance in Los Angeles.
Los Angeles renters insurance FAQs
Although you are not required to have insurance by law, your landlord may want you to have a policy. Even if they don’t, it’s a good idea to ensure that your personal possessions can be replaced in the event of a fire or other disaster by having a policy in place.
Expect to pay a little more than the state average of $182 annually. Your own rate will be determined by multiple factors, including your apartment’s location, deductible, and the amount of coverage you’d like.
There’s no one best company for everyone — the company that gave your neighbor the lowest quote may not offer you the same. That said, the insurers we’ve discussed above are a good place to start. Or, if you prefer, head on over to our listing of the Best Renters Insurance Companie.
Too long, didn’t read?
If you rent an apartment in Los Angeles, you’ll want to consider renters insurance to protect you and your belongings in the event of a disaster. There are a number of national insurers who sell policies in Los Angeles, including Allstate, Lemonade and USAA. There are also some smaller, regional companies like Mercury and Stillwater that offer competitive pricing along with top-notch customer service. Any of these companies will have comprehensive coverage available that is customizable for your own needs, at a good price point.
We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at [email protected] with comments or questions.
A home warranty plan is an ideal investment for homeowners looking to protect their purchase and to ensure that every aspect of their home is kept running smoothly and efficiently.
A warranty differs from a homeowners insurance policy, though the two do have similarities.
The latter is usually designed to protect against any theft from the property, as well as damage which occurs as the result of natural causes such as flood, fire, or storms.
A home warranty, on the other hand, attends to the mechanics and appliances which reside within that home, such as plumbing and heating systems, washer, dryers, and stoves.
Sears is one popular option for home warranties, and it may be worth your consideration. In this review, we’ll examine its coverage and cost and weigh the pros and cons of protecting your home with the company.
Home Warranties: Here’s How They Work
A warranty for your home works in a similar way to a traditional home insurance policy.
You pay a certain monthly amount, and in return be covered if an appliance or system requires a replacement or repair.
Most providers will offer a variety of plans which are designed to suit the lifestyle of the policyholder, and Sears is no different.
Who Needs a Home Warranty?
Although home warranties are not compulsory in the same way that home insurance policies can be for some mortgage providers, they are nevertheless a good idea for any homeowner.
Investing in property is a substantial financial commitment, and it is a good idea to protect this investment in the best way you can; by having secure, financial protection and cover.
You also get the peace of mind that things can be repaired and replaced if they go wrong, without costing you an excessive amount.
Sears Home Warranty
Sears Home Warranty is one of the best home warranty companies for a number of reasons. The Sears Home Warranty plan is an ideal way for busy homeowners to ensure every aspect of their home is taken care of in the event of an incident.
Plans
It offers a chance to purchase a single plan, which then serves to protect a range of systems and appliances within the home, no matter how old they are, the manufacturer, or where they were initially purchased.
There is a choice of three plans, allowing you to select the combination most suitable to your needs and lifestyle, and ensuring that you are not spending money on something you do not need.
Filing Claims
In addition, Sears takes the hassle out of finding a suitable repair service, by supplying one as part of the policy.
If you need to make a claim, simply call the customer service line, which is available 24 hours a day, seven days a week.
This means you can report your claim at a time that suits you, as soon as you need assistance, rather than being required to wait for days or weeks for a representative to become available.
Repair
Once this call has been received, the agent will arrange a suitable time for a pre-screened and qualified technician to visit your home and inspect the issue. Once the problem has been identified, Sears will endeavor to repair the malfunction or replace the item where this is not possible.
A service fee will be required when the technician arrives, and the amount you decide to pay at this point could impact your monthly payments; a higher amount will lower them while paying less could increase them.
What Plans Are Available?
Appliance Plan
As the name suggests, the purpose of the appliance plan is to provide cover for essential appliances within your home. It covers items including:
Built-in dishwasher
Washer and dryer
Refrigerator with icemaker
Range, cooktop, stove or oven
Built-in microwave
Trash compactor
Exhaust fan
Systems Plan
The systems plan is the area responsible for covering all the major systems which are present in your home. Key areas include:
Central heating
Water heater
Water softener
Plumbing and plumbing stoppages
Garbage disposal
Toilets and taps
Garage door opener
Ceiling fans
Electrical systems
All the above components come as standard, but policyholders also have the option to purchase add-ons according to their needs. These extras can cover areas such as:
Sump pump
Well pump
Stand-alone freezer
Septic tank and pumping (here, there is a pumping limit of $500 and a tank replacement limit of $1,000)
Pool and/or Spa with a heater (here there is a heater limit of $1,000)
Whole House Plan
A third option is the entire house plan. As the name suggests, this allows the whole home to be protected and covers 21 major appliances and systems for the ultimate peace of mind. Areas covered include:
Garage door opener
Central heating
Plumbing and plumbing stoppages
Water heater
Water softener
Garbage disposal
Faucets
Toilets
Ceiling fans
Electrical systems
Washer
Dryer
Built-in dishwasher
Oven, cooktop or range
Refrigerator – including ice maker
Range exhaust fan
Built-in trash compactor
Built-in microwave
There are also optional extras which can be added on according to your own needs and requirements:
Septic tank with pumping (limit of $500 for pumping, and $1,000 for tank replacement
Stand-alone freezer
Sump pump
Well pump
Pool and spa heater (this has a heater limit of $1,000)
Sears offers a diverse range of plans, allowing homeowners to make the best choice to suit their household.
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Do You Need a Sears Home Warranty Plan?
The decision to take out a plan is a personal one, but it is worth weighing the pros and cons to ensure that your choice is confident and fully informed.
Pros
Comprehensive coverage: You will have a single plan to cover your whole home, so in the event of an incident, there is just one number to call.
Streamlined repairs: There is no need to try and find a repair service at short notice. The technician will be included with your plan, saving time and effort.
Affordability: The monthly repayments are very likely to be cheaper than having to find a replacement or repair for an appliance or system.
Budget-conscious: You will know exactly what you are paying and when, as well as being able to budget for any premiums, as you have all the figures in advance.
Cons
Required services: You are restricted to only using the repair services and technicians provided by your plan. This can be a disadvantage if you have a preferred and trusted option.
Requirements: All goods which are covered must be in full working order at the time the policy is taken out, which means it is no good for quick fixes.
Limited coverage: There are often caps on the amount which can be claimed, and this may leave you out of pocket if you have a particularly expensive system or appliance.
Exclusions: Make sure you know exactly what is covered. Exclusions and exceptions apply to every policy, and it is essential to be adequately informed.
In Conclusion
The Sears home warranty plan offers three diverse options, which can be adapted and changed according to your needs.
Unlike some of its competitors, there is no build your own plan, which is a little disappointing. However, various add-ons can be added to help make the plan more flexible.
A home warranty plan helps to give you more peace of mind and security and protects you from substantial, unexpected financial costs.
It can prove an affordable way to protect your home and property, and be better prepared for any future emergencies!
Dependable Home Warranty was founded in California in 1974. When they became a subsidiary of Old Republic International in 1982, they continued to provide reliable coverage to all of their customers.
They have since earned a spot among the top three home warranty companies in the country with an A+ rating from the Better Business Bureau.
Old Republic offers efficient and friendly service with comprehensive plans and straightforward pricing.
Their goal is to be a long-time service provider for your household by building a relationship with your family and earning your trust.
Old Republic Home Protection Review: Main Features
Table of Contents
Old Republic offers many ways to protect your investment by covering common home repairs to help keep your house safe and sound.
With Old Republic, you can expect to find a variety of plans tailored to meet your coverage needs. Across plans, there are a number of features that stand out.
The following are some of our favorite Old Republic coverage features included in all plans, features which put it on our list of top home warranty companies.
Heating System
Heating units not exceeding five tons are covered under all of Old Republic’s warranty plans, and they don’t limit the number of units you can cover.
Most companies only allow coverage for one unit, and you have to pay extra for additional units, so this is a really excellent coverage option.
If you have multiple heating units in a large house or you have an outbuilding you use for your hobbies and projects, this coverage provides you with a great solution. Heating system coverage includes parts like the heat pump, ducts, thermostat, floor heater, and drain pumps.
Plumbing System
When a part of your plumbing isn’t working, it can disrupt your entire routine from dishes to showers to bathroom breaks.
Old Republic’s plumbing system coverage includes the following:
Drain line stoppages
Toilet tanks
Pipe leaks
clogs/leaks: in your water heater, water dispenser, garbage disposal, sump pump, and water pressure regulator parts
Electrical System
You use your electrical system for almost every part of your day. Making toast for breakfast, watching TV in the afternoon, and playing games with your kids in the evening all require electricity.
To keep the lights on, Old Republic covers your outlets, switches, panels, breakers, wiring, fuses, fans, and more.
If something goes wrong with your electrical system, they’ll restore power quickly so you can keep moving.
Home Appliances
Old Republic covers home appliances like your oven, cooktop, range, dishwasher, exhaust fan, built-in microwave, and trash compactor.
Every component of these systems is included in the event you experience normal wear and tear or an unexpected outage.
With this coverage, you can keep your kitchen in proper working order to cook meals, do dishes, or gather with family and friends.
Old Republic Warranty Plans
Old Republic offers customizable warranty plans based on location. While there’s not a standard set of plans for you to preview, Old Republic has brochures available that detail the specific coverage in your area.
Old Republic offers location-based plans to provide better coverage based on common problems in your region.
For instance, you won’t pay for air conditioning coverage when your home doesn’t have an air conditioner.
They can provide superior options and more valuable service by segmenting their warranty plans this way. Experts servicing your location will be more knowledgeable about the problems you encounter and be able to fix them more quickly.
The Good – Old Republic Home Protection
Old Republic offers some benefits in addition to their exceptional features, giving you not only great coverage but fantastic conveniences that make your life easier. Here are just a few of our favorites.
Easy Quotes
You don’t have to call Old Republic to request a quote, and you won’t be hassled by their representatives.
They provide online brochures listing the coverage options in your area so you can do the research on your own and find what’s right for you.
The quoted estimate is highly accurate and lists the service call fee along with the warranty plan price.
Online Claims
Most of your home warranty claims can be handled online, adding convenience to the process. If you find faulty wiring in the basement and you can live without spending time in that space for a few days, the online option is easy to use and eliminates the need for you to pick up the phone.
You should always call instead of filing a claim online in the event of an emergency or if you need to make multiple requests like bringing up previous services or getting the status of an existing claim.
Great Reputation
Old Republic prides themselves on having an outstanding reputation, and they do everything they can to maintain it. They’re reliable, professional, and competent.
The company lists their values online so you can always see how important it is to them to provide you with the best possible service.
They value honesty, and they are always open with their customers. With this kind of transparency, you can rest assured they’ll do whatever they can to give you the best service at the best prices.
Online Resources
Old Republic’s website includes a number of educational tools that can help you make an informed home warranty purchase.
With a blog full of home improvement tips, real estate marketing tools, information about home warranties, and more, you’ll be able to find what you need quickly.
The FAQ page includes answers to the questions that customers ask Old Republic most frequently, so when you’re on the hunt for more information about the company or their plans, it’s all right there.
Real Estate Professional Options
For real estate professionals who prefer to add perks to their sales, Old Republic has packages just for you.
You can cover all of the homes you sell with a fantastic starter warranty, enticing your buyers and giving you an edge.
These plans include extensive tools like customizable e-cards and newsletters, open house kits, and other marketing items.
The Bad – Old Republic Home Protection
As with anything you buy, Old Republic has some downsides, none of which are too significant.
Coverage Areas
They don’t provide nationwide service, so their warranty plans aren’t available everywhere.
However, Old Republic has chosen to focus on areas where they feel they can offer the best value, so in the areas where service is available, it’s the best service you can get.
Customer Support
Old Republic doesn’t offer email or online support. Sometimes the most convenient thing you can do is hop online and chat with someone if you have a quick question.
Support Options Limited
The lack of online support forces you to call in a situation where it would typically be simpler to chat.
However, they do have phone representatives, and their online help section is more comprehensive than many other providers. They have an extensive FAQ section as well as a blog that provides even more advice and answers.
Pros
Cons
Comprehensive Coverage
Old Republic Home Protection offers a wide range of coverage options, including for major appliances, systems, and optional add-ons such as pool and spa coverage.
Ease of Use
Old Republic Home Protection makes it easy to request service and track claims online or through their mobile app. They also have a network of pre-screened contractors to provide service.
Strong Reputation
Old Republic Home Protection has been in business for over 45 years and has a strong reputation for customer service and claims handling.
Customizable Plans
Old Republic Home Protection offers a variety of plans and optional add-ons, allowing customers to tailor their coverage to their specific needs and budget.
Alternatives to Old Republic
Old Republic is one of several great home warranty companies. Take a look at the top alternatives below to decide which provider is best for you.
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The Bottom Line – Old Republic Home Insurance Review
While Old Republic doesn’t have online chat support or coverage in all areas, they do have a fabulous reputation for being honest and upfront with customers.
Their integrity standards are some of the best in the business, giving you peace of mind that your warranty coverage will be honored.
Their quotes are easy to find without having to reach out to a representative, they have a no-pressure sales process, and they offer location-specific coverage for more comprehensive plans and solutions.
When it comes to home warranty coverage, Old Republic provides excellent options for all of your home warranty needs.
FAQs – Old Republic Home Insurance
What does Old Republic Home Protection cover?
Old Republic Home Protection offers a range of coverage options, including for major appliances, heating and cooling systems, plumbing, and electrical systems. Optional add-ons, such as pool and spa coverage, are also available.
How does Old Republic Home Protection work?
If a covered item in your home breaks down, you can file a claim with Old Republic Home Protection either online or over the phone. Old Republic will then send a pre-screened contractor to your home to assess the problem and perform any necessary repairs.
How long does a contract with Old Republic Home Protection last?
Old Republic Home Protection requires a one-year contract. The contract automatically renews each year unless canceled.
Product Description: Old Republic Home Protection is a home warranty company that offers coverage for home systems and appliances.
Summary of Old Republic Home Protection
Old Republic Home Protection is a home warranty service that offers coverage for major repairs and replacements for important home systems and appliances. It provides coverage for items such as heating and cooling systems, plumbing, electrical, water heaters, and more. The company also offers additional services such as repair scheduling, 24/7 emergency service, online account management, and an annual maintenance plan.
Cost and Fees
Customer Service
User Experience
Product Offerings
Overall
3.9
Pros
Predictable Coverage: A one-year contract with automatic renewal means that homeowners can count on having coverage for a set period of time without having to worry about renewing the contract themselves.
Continuous Coverage: Automatic renewal ensures that there is no gap in coverage, which is especially important for homeowners who rely on their home systems and appliances.
Budgeting: With a one-year contract, homeowners can budget for the cost of the home warranty and plan accordingly for the renewal.
Cons
Long-Term Commitment: A one-year contract means that homeowners are locked into the service for a set period of time, even if they are dissatisfied with the coverage or service provided.
Cancellation Restrictions: Cancelling the contract before the end of the term may result in penalties or fees, depending on the terms of the contract.
Automatic Renewal: Automatic renewal means that the contract will renew automatically unless cancelled, which may catch some homeowners off-guard if they forget to cancel before the renewal date.
Home warranty services like Advanced Home Warranty offer to shield you from unexpected repair bills in exchange for $400 to $600 a year plus service fees.
You could sign up within minutes online and have coverage in place after a 30-day waiting period.
But do you really need to?
Would the warranty protect you from out-of-control expenses or would it be just another bill to worry about?
Could you find another way to pay for repairs?
To answer these questions with any certainty, you’d need to know the future, and we can’t help with that. You’ll have to settle for the next best thing: Studying the warranty to find out how it works and how it might (or might not) help you.
About Advanced Home Warranty
Advanced Home Warranty hasn’t been around very long, but its sister company, Choice Home Warranty, has provided warranties for decades. The companies offer very similar warranty plans.
Both companies offer lower-priced options compared to other warranty companies. You can save on premiums and service call fees.
You can also save by opting only for coverage on the systems you need, within certain parameters.
Advanced Home Warranty does not let you build your own customized warranty, but its plan structure lends itself to some customization.
Advanced Home Warranty’s Basic Plan
Advanced’s Basic option will cover the fundamental systems in your home with a couple of notable exceptions. The plan covers:
Cooktop
Ceiling and exhaust fans
Dishwasher
Ductwork
Oven / range / stove
Heating system
Electrical system
Plumbing system
Plumbing stoppages
Water heater
Whirlpool bathtub
Built-in microwave
Garbage disposal
Garage door opener
The Basic plan is a bargain at about $400 a year. But it does not cover your refrigerator, your clothes washer and dryer, or your air conditioner.
If you don’t need coverage for these systems, you could save with Advanced’s Basic Plan. If you do need this coverage, you’ll need the Total Plan.
Advanced Home Warranty’s Total Plan
The Total Plan includes everything in the Basic plan, along with your:
Air conditioner
Refrigerator
Clothes washer/dryer
The Total Plan starts around $550 a year.
Optional Coverage: Add Flexibility
With either the Basic or Total Plan, you could add coverage as needed in any combination to protect your:
Each of these add-ons could cost between $20 and $50 extra a year. This flexibility allows you to include only the coverage you need without paying to protect a system you don’t even have.
When warranties bundle more coverage together, you’re more likely to pay for services you don’t need, like a central vacuum system when all you have is an old upright Hoover, or a sump pump when your home is built on a concrete slab.
How Advanced Home Warranty Works
Advanced Home Warranty gets high marks for giving you more control over how you build your warranty coverage.
But we’re still in the hypothetical phase of the shopping process. How would this translate if you bought a plan that meets your specific needs?
Filing a Warranty Claim
You can buy a warranty on your home right now without needing a home inspection or any documentation. Unless your home exceeds 5,000 square feet, you’ll get a standard pricing plan based on your ZIP code.
Like most warranties, you’d have to wait 30 days after signing the contract before you can file a claim with Advanced Home. After your 30-day waiting period, you could call the company’s toll-free service number 24 hours a day.
Paying Your Service Fee
Assuming your warranty covers your faulty system, the company will send out a technician within two days (four days on weekends or holidays).
The technician will charge you $60 to diagnose the problem. Service fee amounts vary between warranty companies, but charging this fee is standard practice. It works like a deductible on your homeowners insurance policy or a co-pay on your health insurance.
The technician will either:
Fix the problem for no additional charge: This is the best case scenario, and if this happens you’ll feel good about your decision to buy the warranty.
Have a more specialized contractor come out: You’re still getting the problem fixed, but it’ll take a little longer.
Recommend replacing the system: As long as a replacement falls within your warranty’s annual spending caps, which we’ll get into below, you can get the system replaced at no charge.
Inform you the warranty won’t fix your problem: This can be infuriating after you’ve already paid the premiums and the service fee. Prevent this scenario by reading the contract carefully before signing.
Your Contract’s Exclusions
Any home warranty comes with some exclusions which could deny coverage even to a covered system in your home.
Many new homeowners who buy a warranty feel surprised when the warranty denies their claims. Advanced Home Warranty’s sample contract spells out the exclusions, which are far too numerous to list here.
Exclusions include:
For a refrigerator: Advanced won’t fix racks, shelves, lighting problems, ice makers, Freon, ice crushers, beverage dispensers, door hinges and gaskets, glass, Internet-connected features, spoiled food.
For a clothes washer: The warranty won’t fix problems with door seals, filter screens, leveling and balancing, glass, soap dispensers, knobs and dials, hinges, damage to clothing.
For an air conditioner: The warranty won’t cover condenser casings, electronic air cleaners, filters, humidifiers, gas air conditioning systems, registers and grills, non-ducted wall units, window units, water towers, improperly sized units, chillers, roof mounts, jacks, stands or supports, commercial grade equipment — this list goes on and on.
Electrical system: The warranty won’t help with alarm systems, attic or exhaust fans, DC wiring, doorbells, fixtures, CO2 alarms, smoke detectors, inadequate wiring capacity, solar power panels or components, running new wires, damage due to power failure or surge. Again, this isn’t all.
The list of exclusions goes on for page after page, but the sampling above should show you the importance of checking the contract thoroughly before signing.
Annual Spending Caps
Your warranty’s contract should also tell you the maximum amount your warranty would pay each year. If your repair exceeds the spending cap, you’ll have to make up the difference out of pocket.
Most warranties have a comprehensive cap and/or a per-system cap.
Here’s a sampling of Advanced Home Warranty’s spending caps:
Heating system: $1,500 per year.
Electrical system: $500 per year.
Plumbing system: $500 per year.
Ductwork: $500 per year.
Other Reasons for Non-Payment
Advanced Home Warranty will provide details in your contract about several other conditions which could prevent the company from paying to fix your system.
For example, the warranty won’t pay for damage resulting from:
Known or unknown pre-existing conditions
Rust or corrosion
Mildew or mold
Sedentary build-up
Also, expect to cover the cost out of pocket for cutting through concrete or walls to access damaged systems. The company also won’t pay to repair cosmetic damage resulting from this kind of repair.
Alternatives to Advanced Home Warranty
Take a look at some of Advanced Home Warranty’s top competitors to ensure you get one of the best home warranties to protect your home.
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Should You Get a Home Warranty?
At this point, many shoppers ask themselves, “Why even bother with a warranty? Why would anyone pay into a plan with so many exclusions?”
These are good questions. Yet thousands of homeowners buy warranty coverage every year because they like the idea of paying about $500 a year in exchange for a few thousand dollars worth of home repairs.
The key is knowing how to use a warranty: The warranty should repair or replace home systems that wear out from normal wear and tear.
A warranty won’t fix a system which faltered because of misuse, over-use, lack of regular maintenance, or improper installation. A warranty also won’t help with cosmetic issues or personal preferences. It won’t pay for maintenance, inspections, or to get your system up to code.
Warranties vs. Homeowners Insurance
Sometimes your homeowners insurance policy could help you repair system damage that a home warranty will exclude. If lightning strikes your home and fries the electrical panel, for instance, your warranty won’t pay but your homeowners policy should.
It’s easy to confuse these two sources of help. Basically, a warranty can help when a system in your home wears out from normal use. Your insurance should help when an outside force — wind, hail, lightning, a tree, a burglar, or fire — damages or destroys your property.
Understanding this difference can help place a home warranty in context.
Who Needs a Home Warranty?
Whether a home warranty makes sense for you depends partly on your home. In a home where systems will be less likely to wear out, a warranty makes less sense.
In a brand-new construction, for example, you’re less likely to need work on your electrical system or your plumbing system. Something could go wrong, of course, but statistically speaking, you’re less likely to face high repair bills than someone in a 35-year-old home.
However, if you bring your older refrigerator and clothes washer into your new home, those systems will be more likely to need repairs this year. Your warranty should reflect this reality.
Reasons Not To Get a Home Warranty
Along with the condition of your home, your overall financial situation can also help you decide whether to buy into a plan like the one Advanced Home Warranty provides.
If you have several vulnerable systems in your home and you have no idea where you’d come up with a couple thousand dollars if needed, a home warranty could be useful. I’m assuming, of course, the $400 to $600 in premiums wouldn’t be too much of a hardship.
If you have money saved or you have another plan for coming up with repair money, such as a low-interest line of credit, you could rely less on the protection of a warranty.
Also, if you know how to fix just about anything in your home, you’d probably be OK without a warranty. You’ll still need to save some money for parts, perhaps, but you’d have less need for a technician to come out and assess your ailing system.
Bottom Line: Follow the Rules
Home warranty companies like Advanced Home Warranty provide a concrete service: home system repairs.
But they tend to sell customers on an abstract concept: a sense of security.
This sales pitch taps into your sense of fear as you enter homeownership. The pitch gives you an action to take (buying a warranty) to ease your fears of out-of-control repair bills.
To make the best decision as a consumer, you have to look beyond this sales pitch to see exactly how the warranty would (and when it wouldn’t) help you. These four rules can help:
Understand What You’re Buying: We call these plans “home warranties,” but they hardly resemble a manufacturer’s warranty which will replace your phone or food processor. Instead, you’re buying a service contract which doesn’t come with very many guarantees. It can offer convenience and it should help replace or repair worn out systems.
Read The Contract: Read and understand every word of your actual contract before you sign it. A sample contract like the one Advanced Home Warranty provides on its site will give you a good idea how the company works. But it’s not the same as the contract you’ll need to sign. If you don’t understand a clause, call customer service. If the rep can’t help you understand, consider moving on to another company.
Customize Your Coverage: Advanced Home Warranty allows for more warranty customization than many companies. Try to avoid paying for coverage you couldn’t possibly use. Sometimes you’ll have to include a system or two you don’t need, but often you can create a customized plan.
Have a Backup Plan: But wait, you might say, the warranty is my backup plan. Since warranties have so many limitations on service, you should still set aside some money for home system repairs. This can also help if your repair exceeds your warranty’s annual spending cap.
No, you can’t see the future and know for certain whether a warranty could save you money in the coming year. But learning as much as you can about Advanced Home Warranty in the present should help you avoid a lot of future frustration.
If you’re thinking about buying a home warranty, you may be considering First American Home Warranty, a leader in the industry.
Home warranties like First American’s can feel like a gamble. Will the warranty pay when you need it to? Or will you find out the hard way your warranty doesn’t cover the repair you need?
You may not know unless you comb through a warranty contract line by line looking for exceptions, conditions, and requirements of you, the homeowner. So let’s take a close look at First American Home Warranty.
About First American Home Warranty
First American Home Warranty has been in business for more than 35 years and currently serves about 450,000 clients in 38 states.
That’s a substantial amount of customers and a wide range of coverage. Paired with more than three decades of service, the numbers speak highly for First American’s reputation. It’s one of the leading home warranty companies today.
But you also need to assess the terms of their home warranty policies and the types of claims they actually cover to make an informed decision.
Let’s go through the company’s warranties element by element:
What Does First American Home Warranty Cover?
First American has two plan categories: Basic and Premier. Any prices quoted in this section could change without notice.
First American typically raises its premiums every few years. The company sells annual contracts but allows monthly payments.
Basic Plan
The Basic Plan ($28 a month) covers:
Refrigerator
Dishwasher
Range/oven or cooktop
Microwave
Garbage Disposer
Trash compactor
Washer and dryer
Premier Plan
The Premier Plan ($44.50 a month) covers everything in the Basic Plan, plus:
Electrical system
Plumbing system
Water heater
Central heating
Garage door opener
Ductwork
Central vacuum system
Upgrades
Additional available upgrades to either plan include:
Air conditioning service ($9 extra per month)
Coverage for additional refrigerators ($4 extra per month)
Pool and pool equipment ($15 extra per month)
Well and well pump ($9 extra per month)
How Much Will First American Home Warranty Pay?
To understand how much a warranty could pay, you have to consider payout caps and service fees.
When you contact your warranty company for service, the company will typically send out a technician to assess the situation. You’ll pay a service fee for this initial step, and you can think of the fee as a deductible.
With First American Home Warranty, the fee is $75 in most states, but it could be as high as $100. We looked at a contract from Texas, where customers currently would pay $75 per visit from a technician.
Assuming the repair or replacement you need will be covered by the warranty, your next concern will be the warranty’s payout cap. Again, these can vary from state to state.
Expense Caps
The contract for Texas is fairly typical for First American, and it caps payouts like this:
Plumbing: $500 maximum per year for repairs to the pipes in your home.
Water heater: $1,500 maximum per year, excluding flues and vents and fuel storage areas.
Kitchen appliances: Limited to $3,500 per covered appliance.
Heating system: Limited to $1,500 per year.
Central air conditioning (optional add-on): limited to $1,500 per year.
Other systems in the First American Home Warranty contract do not cap expenses, but they have specific limits on what parts of the system the warranty will repair or replace.
Limitations
In these cases, the fine print can go on for a while, so the following lists aren’t all-inclusive. If you’d like to fully assess the details of a contract, you’ll need to go through the quote process and ask for a sample contract.
The following examples should give you a better idea what to look for when you’re investigating a contract’s limitations:
Electrical system: No expense cap, but the plan won’t pay for door bells, alarm systems, intercoms, audio or video recording devices, damages due to power surges or inadequate wiring capacity.
Garage door openers: No expense cap, but the plan won’t pay for remote controllers, gate motors, hinges and springs, side rails.
Laundry appliances: No expense cap, but the plan won’t pay for repairs to filter and lint screens, knobs and dials, venting, or damage to clothing.
These limitations are typical for a home warranty, and you’ll want to study the details carefully before signing up. If you think the contract won’t provide services you anticipate needing, don’t sign the contract.
Filing Warranty Claims
You will have to wait 30 days after signing the First American warranty contract before you’re eligible to file a claim.
After the waiting period, you can contact First American’s customer service staff any time of the day or night, either via phone or online to start a claim.
How to File a Claim
Starting the claims process online has the advantage of documenting your claim from the outset in case you need to dispute the company’s decision later.
If the customer service staff is certain your problem won’t be covered, the claims process can end immediately. But in most cases, the company will send out a home repair technician who will charge you the service fee we discussed earlier. The service charge is typically $75.
After you pay the service fee, the warranty’s technician should fix or arrange a replacement at no charge, up to the annual limits of the warranty. At this point, your warranty will either seem like a great idea or a waste of money, depending on the outcome of your claim.
Often, when a warranty does not pay a claim, the homeowner feels cheated, and understandably so. However, warranty companies like First American generally do not breach their own contracts, so knowing the intricacies of your contract can help you dispute an unpaid claim.
Common Reasons for Claims Denials
Here are some common and legitimate reasons a warranty could deny your claim for service:
System not covered: When you buy a warranty and then renew it a couple of times, it’s easier than you might think to forget what coverage you bought, especially if your real estate agent helped purchase the initial warranty. A Basic Plan from American Home won’t cover your plumbing, for example, so if you filed a claim to fix a frozen pipe, you’d get an automatic denial. I know this is kind of like asking whether your computer’s plugged in when you call tech support. But there’s a reason people ask.
Bill not paid: Sometimes customers fall behind on their monthly bills and decide to skip a few warranty payments. If that happens and you need to file a claim, you’re giving the warranty company a reason to deny service.
Contract caps met: American Home has more relaxed payout maximums than most other companies, but on many systems, the company still sets an annual maximum. This makes sense: A company wouldn’t stay in business if it regularly paid out more than you’re paying in premiums.
Maintenance standards not met: Again, American Home’s standards aren’t as high as many other companies, some of which require proof you’ve performed regular maintenance on your covered systems in order to get coverage. American Home will often require regular maintenance on larger items such as your central heat and air (if you opt into AC coverage). The company typically doesn’t require its own initial home inspection before you sign the contract.
How to Avoid Denied Claims
Getting a claim denial can be infuriating. You feel cheated, and you still have to figure out how to pay for the repair you need. Reading your contract carefully, line by line, will help you know whether the warranty provider is living up to its agreement or whether you should file a claim.
Believe it or not, a denial may not be the worst experience you can have with a warranty company. You could get approved for service only to experience delays in service making you feel stuck in-between.
Or, you could get stuck in another in-between: a repair you’re not happy with that the warranty company insists has been completed.
Who Will First American Send to Help?
First American has its own staff of home repair technicians. If the company’s technicians need more expert help, they can bring in specialists of their choosing. Customers have little control over who comes out to repair your home system.
Although First American serves nearly half a million customers around the country, the company usually sends technicians from your general area.
This reduces waiting times, and it also helps the company adhere to your local codes.
However, the company will not send help specifically to get a system up to code. A warranty exists to replace or repair systems in your home, not to maintain them.
Grading First American Home Warranty
If you’re trying to decide whether to buy a warranty from First American Home Warranty, you’ll quickly discover it’s a tough question to answer.
First American Pros
Simple contracts: Compared to many other companies, First American’s contracts can be easier to understand.
Lower premiums: The company is on the lower end of the cost spectrum.
Complaint resolution: The company has the customer service staff in place to help resolve customer complaints.
Reasonable caps: On the surface, none of First American’s annual caps on repairs seem prohibitively low.
First American Cons
Lack of clarity: Though the contracts are easy to understand, they don’t always answer every question you may have. You may need to call for clarification.
Lack of flexibility: Some warranties allow you to customize your coverage to meet your home’s needs. For example, you could pick 10 systems to cover. First American offers only specific coverage plans.
Closed service network: First American sends its own specialists and technicians, meaning you have less control over the repair process.
What Customers Say
In many ways, the First American’s customer service rates better than other warranty companies:
The Better Business Bureau gives the company a B+.
TrustPilot, which compiles customer reviews, give it 4 out of 5 stars.
These ratings result, in part, from First American’s commitment to dealing with complaints. But, individual customer reviews tell a different tale. Customers express frustration, annoyance, and disgust in review after review.
Of course, customer reviews tend to lean toward the negative. Happy customers are generally less compelled to share their feelings online. Still, this preponderance of frustration can’t be simply ignored.
Truth be told, it’s unfair to single out First American. Just about any home warranty company can inspire these feelings when the warranty doesn’t pay as the customer expected.
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Do You Need a Home Warranty?
A warranty works kind of like home insurance, but instead of protecting you against loss of value from disasters such as fires and hurricanes, a warranty can shield you from out-of-control home repair costs.
When to Avoid a Home Warranty
You have a healthy savings account: When you could afford to repair or replace major appliances or home systems if needed, you could have less need for a warranty.
You can borrow money easily: When you have great credit and a low debt-to-income ratio, you can usually find no-interest loan offers for big repairs like HVAC systems or electrical wiring repairs.
You have a brand new home: The protection a warranty can provide makes the most sense with older homes which could require expensive repairs at any point.
You have other protections in place: Maybe most of your home’s systems already have manufacturer’s warranties or service contracts from the installation company.
You’re good at fixing things: Some people have the gift of fixing just about anything that breaks, meaning they’d be on the hook only for parts and their own time.
If any of the above scenarios describes your life, you could possibly get by without buying a warranty.
When to Buy a Home Warranty
On the other hand, if the following conditions describe your home and your financial life, you may want to consider a warranty more seriously:
Several major systems in your home are old: An HVAC system will typically last 20 to 25 years. Smaller systems such as dishwashers, clothes washers and dryers, garage door openers, and stoves may last a decade or so. If you buy an older home with aging systems, a warranty can seem more appealing.
Your mortgage payment stretches your budget: If your house payment already takes 35 percent or more of your monthly income, a huge repair bill could spell financial disaster. A warranty may seem like a sensible precaution.
You don’t have much in savings or solid credit: If you couldn’t spend or borrow your way out of a tight spot, a warranty can provide some extra peace of mind.
Someone with all of these limitations may be the most ideal candidate for a home warranty. But someone with a tight budget also has the most to lose by getting a warranty that doesn’t pay.
Bottom Line
Here’s the number one rule if you’re shopping for a home warranty: Read and understand every last word of the contract before signing up.
If you don’t understand part of the contract, get in touch with the company’s customer service staff to get answers to your questions.
Becoming an expert on your warranty’s contract will help prevent you from being surprised when the warranty won’t cover a repair you need.
Becoming an expert on the contract can also prevent you from buying a plan that doesn’t meet your home’s specific needs.
Home warranties like First American sell peace of mind. It’s up to you to find out whether the warranty would actually provide it.
Every day, we make decisions which help to protect our homes and properties.
We insure our vehicles, take out homeowners insurance, and make sure we sign up for the warranties on our items to ensure they are safe and covered for longer.
A home protection plan allows you to protect the essentials in your home in case of malfunction or breakdown.
TotalProtect can help you out by providing a plan which is designed to cover the expense of replacing or repairing your appliances if they go wrong—a fact which is inevitable over time following the general wear and tear of everyday life.
A home warranty means you are fully prepared for whatever life throws at you, and saves you from spending massive amounts on replacing your appliances.
About Home Warranties
A home warranty acts in a similar way to taking out an insurance policy on your home or vehicle.
Most homeowners have home insurance—a requirement for many mortgages—but this is limited to scenarios such as theft or damage to your property from fire or other disasters.
Any mechanical aspects of your home, from garage doors to dryers, will not be included, meaning you will be left with the headache of sourcing a repair person and facing a hefty bill if anything goes wrong.
What Home Warranties Cover
A home warranty, on the other hand, is designed to cover these appliances, as well as heating and cooling systems, plumbing, electrical, and more.
You pay a monthly sum and are fully covered for any repairs, replacements or breakdowns which occur during the life of the product.
In return for this regular payment, the company will provide technicians who can repair, replace or, in rare circumstances, offer a cash substitute for any items which have malfunctioned.
How Claims Are Processed
In the event of a claim, you can contact the customer services team by phone or email, and this resource is available 24/7, even during national and public holidays.
Upon receiving this call, the handler will be able to schedule a technician to visit your home and assess the situation, as well as carry out any repairs or replacements which are needed.
With over 40,000 pre-screened technicians, this is a fast and easy way to deal with the problem quickly.
What TotalProtect Has to Offer
TotalProtect is among our top picks for home warranties.
A plan from TotalProtect is ideal for busy homeowners who do not want to be calling a technician every time something breaks down.
This takes up precious time and often proves more expensive. Instead, a single call to your provider will take care of everything for you.
One key bonus is the ability to pick and choose your plans—we will discuss these in more detail later—and this allows you to adapt your policy to your lifestyle and needs, ensuring that you are not paying for anything unnecessary.
You can select the items, systems, and appliances which you require cover for, and tailor your plan to suit you.
TotalProtect Plans
TotalProtect offers three plans.
These are:
Appliances Plan
This plan covers all appliances in your home, with a particular emphasis on kitchen and laundry appliances. Items covered include:
Stoves, ranges, and ovens, including wall ovens
Range exhaust hood
Refrigerators
Washers and dryers
Dishwashers
Built-in ice and water dispensers
Built-in microwave
Integrated trash compactor
Built-in dishwasher
Garbage disposal
Systems Plan
As the name suggests, the systems plan is designed to cover all critical systems within your home, such as:
Heating and air conditioning systems
Gas and electrical systems
Interior plumbing
Water heaters
Toilets
Plumbing lines
Plumbing stoppages
Sump pump
Whirlpool bath
Central vacuum
All doorbells and chimes
Garage door opener
Smoke detectors
Interior electrical lines
Interior gas lines
Attic or whole house exhaust fan
Combo Plan
The combo plan allows you to pick and choose the elements of the systems and appliances plans, to create the perfect combination for your needs and requirements.
It also comes with additional benefits, including:
Homeowners insurance discounts
Unknown pre-existing condition coverage
No inspections required before taking out the policy
Coverage for rust and corrosion
No annual aggregate caps
Coverage for your pool or spa
Exclusions
As with any policy, there are certain exceptions and exclusion which cannot be claimed.
Unlike some of their competitors, TotalProtect will cover a pre-existing condition which you were previously unaware of.
That means you will not be abandoned without support if one of your systems or appliances suddenly develops a fault.
There is typically a price cap of around $1,000 per item, which may leave some homeowners out of pocket if you have invested in a particularly pricey product.
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Should You Get a TotalProtect Home Warranty?
Pros
Work guarantee: 180-day guarantee on all work, repairs, and replacements, which usually far exceeds the warranty you may get from sourcing an independent technician or service
Customer service: 27/7 access to customer support, allowing you to make a claim at a time which is most convenient to you and your schedule
Flexible payments: Monthly repayments make this an affordable option, and it can work out as being better value than sourcing your own contractors and replacements, particularly if you are required to replace more than one item.
Easy booking: TotalProtect will provide the technician, saving you time and effort
Versatile plans: A range of plans, including the option to create your own providing flexibility and ensures that you are not paying for anything you don’t want or need
Cons
Limited selection: You are restricted to using the technicians and contractors supplied by TotalProtect. There is no option to choose your own supplier, even if you have a preference
Vague exclusions: TotalProtect is not clear on the exclusions from the policy. It is essential to be fully aware of any exceptions before agreeing to sign up
Low maximum: Price cap of around $1,000 per product for a repair or replacement, which could leave homeowners with more expensive items out of pocket
In Conclusion
A home warranty plan is an ideal way for busy and time-poor homeowners to ensure that every aspect of their home, systems, and appliances are fully covered.
It offers an affordable way to repair and replace any aspects which begin to malfunction and has the bonus of coming with a team of qualified technicians who can diagnose and address the problem in no time.
The option of low monthly repayments is also an appealing alternative to the cost of a new air conditioning system or refrigerator.
As with any policy or warranty, it is crucial to read the small print and be confident that you have all of the facts and information you need to make an informed decision. It is particularly important to consider the exclusions to the policy.
Make sure that this information is available to you at the start of the process to reduce the risk of any unpleasant surprises when you come to make a claim.
If you are looking for a convenient solution to take care of your appliances and home systems, a home protection warranty could be precisely what you need.
We invest a great deal of money into our homes—not only in regards to the physical structure, but on interior design, added features, and, of course, the items inside.
To help protect us financially, items often come with a warranty, offering a repair or replacement if the piece breaks down.
Many of us would not think twice about taking out a warranty for our refrigerator or washing machine.
When it comes to our properties, however, many homeowners are not prepared or covered in the event of an incident.
A home warranty can help to protect you and offer both peace of mind and financial compensation, but first you need to pick the right home warranty provider.
About American Home Shield
American Home Shield tops our list of the best home warranties. It is a firm providing home protection plans, which are specially designed to cover some of the most common issues and system breakdowns which may occur within your home.
Operating since 1971, they claim to cover over 1.4 million homeowners across 49 states.
They also boast a team of more than 10,000 contractors who can provide the services you need to get your home up and running.
How It Works
American Home Shield has a simplified process for coverage. The system works on the basis of a twelve-month contract.
You pick your plan, pay a month’s premium, and have your contract activated fifteen days later.
From this date, you are fully covered. Plans come in a range of options and can be paid via monthly payments to help make them more affordable.
How to Make a Claim
If you need to make a claim, you can contact American Home Shields via the website or phone, 24/7. This will put you in touch with a service representative, who will arrange for a contractor to be sent to your property.
It’s important to note that you will only be contacted by your contractor during regular business hours, despite the customer claim line having 24/7 accessibility.
The company claim that all of their contractors are of the highest quality to ensure that their customers remain completely satisfied, though some feedback has expressed concerns with the contractor they received.
How American Home Shield Assesses Claims
Upon arrival, the contractor will request a trade call service fee paid directly to them to start the process for them to diagnose the issue.
They will contact American Home Shield before taking any further action to check that your plan covers the problem before repairing or replacing the system.
While the consensus is that this phase is carried out effectively in most cases, there have been reports of some contractors failing to diagnose the issue after receiving the fee.
Benefits of American Home Shield’s Process
There are some bonuses to the system.
First, your plan is fully transferable, ensuring that you are covered even if you move from your house to another one during your policy period.
The policies are also ‘all risk,’ meaning that everything will be included unless explicitly stated; any exclusions will be made clear to you when you take out the plan.
Types of Plans
As we have mentioned, there are a variety of plan types available, depending on your needs. Pricing may vary according to location but can be paid via affordable monthly payments.
The policies on offer include:
Systems Plan
Usually retailing at around $32 per month, this covers the repair or replacement—where possible— of any components in the air conditioning and heating units of your home, as well as plumbing and electrical systems.
Appliance Plan
Like the systems plan, this coverage is offered at around $32 per month. The appliance plan covers components in refrigerators, dishwashers, washers and dryers, and other key household appliances.
If the appliance is covered, either a repair or replacement will be carried out, depending on what is needed.
Combo Plan
Offered at around $42 per month, this option combines the Systems and Appliance plans, providing all of the benefits of both with financial savings.
If you like the comprehensive coverage offered by both types of policies, the combo plan is an excellent way to save money.
Build Your Own
As the name suggests, this policy allows you to cover at least ten items, while picking and choosing the coverage you need. The price is dependent on what you prefer.
Each monthly payment can also be adjusted by altering the trade service fee which is paid to the contractor when they visit your home.
The set amounts are for $75, $100 and $200; the higher priced options will reduce the price you pay per month.
What is Covered
Each plan is different, but there is a general list of appliances and components which are covered by the policies:
Covered Under Systems Plan
Air conditioning (including ducting)
Electrical
Heating
Plumbing
Garbage disposal
Water heaters
Instant hot and cold water dispensers
Ceiling fans
Central vacuums
Doorbells
Smoke detectors
Covered Under Appliances Plan
Dishwashers
Refrigerators
Clothes washers and dryers
Ranges, ovens, and cook tops
Freestanding ice makers
Built-in microwaves
Garage door openers
Trash compactors
Built-in food processors
Add-ons
As a bonus, there are a few optional add-ons which can be purchased as part of the build your own plan.
Elements covered here include:
Pools and spas
Well pumps
Septic pumps
Water softeners
What is Not Covered
As with any policy, it is essential to be aware of what is not included. The fine print of the paperwork includes a few stipulations.
Be sure to consider the following factors:
Exact items listed: If you have updated your dryer but not informed American Home Shield, you will not be covered for that item.
Malfunctions covered by a warranty: If an item is covered by a manufacturer’s warranty, American Home Shield reserves the right to decide whether the item will be replaced or repaired or not.
Selection: Homeowners also do not get to choose the item if it is replaced; this is at the discretion of the contractor and doesn’t have to be a match in terms of the color, model, size, or brand.
Cash alternatives: If the contractor decides that they cannot repair the component, they may also offer a cash alternative.
It is always worth reading the small print before signing for a plan or policy as it will make your life easier and eliminate any expectations or confusion in the event of a claim.
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Advantages and Disadvantages of American Home Shield
Pros
Pros of taking out a policy include:
Adaptability: A range of protection plans which can be adapted according to your needs
Comparison: The monthly repayments will almost certainly cost less than repairing or replacing your appliance or system as an individual
Access: You can file a claim 24/7
Coverage: Offers protection and reassurance even after the expiration of a manufacturer’s warranty
Cons
Time: Contractors will only contact you and carry out work during regular business hours
Quality of Contractors: There have been reports of some low-quality contractors being sent to the home of customers, and those who are only interested in the fee
Cost: Building up some savings and a network of reliable tradespeople may be a cheaper alternative
In Conclusion
Taking out a home protection policy can be a great way to protect your home and belongings, providing peace of mind and a financial safety net if anything goes wrong, and eliminating the need to worry or search for a contractor to fix the problem fast.
American Home Shield offers a variety of flexible and affordable plans to suit every lifestyle and budget and help to protect homeowners from high bills later on.
As with any policy, however, exclusions and exceptions apply, and it is a good idea to make sure you are fully aware of these before committing.
Running and maintaining a home can be a costly business while juggling the many necessities of life.
Purchasing your home is one thing, but making sure it is always in good running order is quite another. Before you even realize it, expenses can quickly mount up to hundreds or even thousands of dollars.
Upon taking out a mortgage, your lender may have a requirement that you also take out a home insurance policy to protect the building from theft or a naturally occurring disaster, such as a fire, flood, or earthquake.
While this preserves the physical structure of the house, it offers no protection for the things contained inside the building—the essential systems and appliances we use on a daily basis.
If your washer breaks down, or your air conditioning fails, you are potentially looking at hefty repair bills, time spent calling the best technician in town, and a sizable financial hit if the entire appliance needs replacing.
Luckily, there is a practical solution to this issue: welcome to the world of home warranties.
What is a Home Warranty?
As the name suggests, a home warranty or service contract is an insurance policy taken out to protect your home.
First-time home buyers and existing homeowners alike are encouraged to look into a comprehensive home warranty.
Since homes are often considered a huge investment, purchasing a home warranty ensures your valuable piece of property is safeguarded for generations to come.
Unlike a traditional home insurance policy, however, a home warranty is not restricted only to the building. Instead, home warranties cover major elements, such as heating and hot water systems, dryers, and ovens, among other essential items.
Choice Home Warranty is an ideal solution to your warranty woes, offering two plans to provide the best option for your home.
What Are the Benefits of a Home Warranty?
A home warranty works by exchanging a regular monthly payment for protection.
This offers a cheaper solution to the headache of having to pay the total replacement cost of an item at a moments notice.
This type of policy provides homeowners with an extra layer of protection whenever unexpected issues occur.
What Are Choice Home’s Warranty Plans?
There are two plans currently offered by Choice Home: the basic plan and the total plan.
Basic Plan
The basic plan provides standard coverage on the following items:
Electrical system
Heating system
Plumbing system
Plumbing stoppage
Whirlpool bath
Oven, range, or stove
Water heater
Dishwasher
Built-in microwave
Cook top
Garbage disposal
Garage door opener
Ceiling and exhaust fans
Duct work
Total Plan
As the name suggests, the total plan is a comprehensive warranty designed to protect all aspects of your home.
In addition to everything covered by the basic plan, the total plan also covers the following items:
Air conditioning system
Clothes washer
Clothes dryer
Refrigerator
Add-Ons
As a bonus, Choice Home offers clients “add-ons”— extras that can be added to an existing plan for a specific item but not included in either of the standard plans.
Those items covered here are:
Well pump
Sump pump
Pool and spa
Limited roof leak
Central vacuum
Septic system
Standalone freezer
Second refrigerator
Septic tank pumping
These extras allow you to personalize a warranty to focus only on those things you will really need to save money.
Get A Choice Home Warranty Quote
Why Choose Choice Home Warranty?
A Choice Home Warranty offers a variety of benefits, all designed to help make your life easier:
Pros
Free First Month: This is a definite bonus if you are browsing providers. Choice Home Warranty offers the first month of service at zero cost to you when a single-payment and one-year warranty plan is purchased.
24/7 Service: One of the benefits of a home warranty plan is guaranteed peace of mind. Choice Home Warranty offers a 24/7 approach to customer service, allowing customers to call or submit a claim when it’s most convenient for them. Claims can be filed via an online form on their website, making the process quick and easy.
No Home Inspection Required: Some providers require a full home inspection before providing you with a warranty, and this can make the sign-up process a long and drawn out affair for both parties. This is not necessary with Choice Home, and coverage starts as soon as the policy is activated, with no prerequisites.
Benefits for Real Estate Agents: Choice Home provides plans and packages specifically designed for real estate agents. A home warranty can prove a fantastic incentive to a potential buyer, giving you a chance to stand out from the crowd.
Knowledgeable Team Members: Choice Home representatives are thoroughly involved in the claims process and are knowledgeable about the products and services offered. This allows customers to obtain thorough and accurate information tailored to their individual needs and requirements.
Completion Date: In the event of a delay, technicians can provide a completion date for any work carried out. This offers customers total peace of mind along with a realistic time frame.
Informative Website: Choice Home’s website is not only easy to navigate, but is also divided into sections for buyers, sellers, homeowners, realtors, and contractors, making information extremely accessible. A FAQ page helps potential and existing customers answer questions quickly, and their regularly updated blog gives readers the opportunity to learn about recent business developments.
Extensive Coverage: Choice Home prides themselves on comprehensive coverage, and the choice of two separate plans helps potential and existing customers find a solution that best fits their needs.
No Policy Gaps: Coverage will begin 30 days after the homeowner is enrolled, and continues for 365 days. If a customer provides proof of prior coverage with Choice Home or another provider, then a new policy can be activated as soon as the old one expires. This ensures customers are always protected.
Cons
There are also some cons to Choice Home’s policies that specifically relate to pre-existing damage or appliance misuse:
Pre-Existing Conditions: Any damage occurring as a result of pre-existing conditions, whether known or unknown, will not be covered.
Appliance Misuse: Policies do not cover damage from misuse, abuse, or failure to clean and maintain a system or appliance.
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Final Thoughts
A home warranty plan is an ideal way to provide additional peace of mind while saving money on expensive repairs or replacements down the road. You never know when that extra hedge of protection will come in handy.
Choice Home keeps it simple with just two plans to choose from, along with the option to supplement any of their policies with “add-ons” or extras.
There are also options to pay monthly or annually, allowing customers to delegate home management to the experts.
Choice Home’s exclusions are similar to competitors. Nonetheless, homeowners should always read the fine print carefully to understand what is and is not included in a specific coverage plan.
Taking these extra action steps can save customers from any potential disappointment later on when filing a claim. No matter what home warranty under consideration, it’s important to always conduct your own research and analyze competitor offerings before making any significant financial purchases.
With a range of attractive benefits, including ongoing coverage, 24/7 customer service, and a host of benefits for real estate agents, Choice Home warranties take the stress out of a sudden appliance failure or system emergency.
After shopping for a home warranty for a few days, you may wonder how warranty providers stay in business.
Based on online reviews, you’d think every customer who’s ever bought a warranty had a terrible experience and feels cheated. Reviewers warn potential customers away as if they’re patrolling some kind of abyss.
Naturally, online reviews can’t represent all customers. Still, the high volume of discontent is alarming.
The Home Service Club, a relatively new warranty provider, stands out as an exception.
The Home Service Club Review: Top Highlights
The Home Service Club opened in 2008 with the goal of simplifying home warranties and providing a more straightforward approach to coverage and caps. So far, based on customer reviews, the company has succeeded.
You can find less expensive premiums and higher spending caps in other companies’ contracts, but you learn the real cost of a warranty when it doesn’t pay for your repair and you have to find some other way to cover the expense.
With The Home Service Club, you’ll have a more reliable way to know when the warranty will pay and when you’ve exceeded its limits.
Read on to see why the Home Service Club is one of our top home warranty providers.
The Home Service Club Coverage
The Home Service Club has two base levels of service, Standard and Comprehensive.
Standard Plan
Essentially, the Standard Plan covers the kitchen and laundry area and the primary systems in your home:
Refrigerator
Stove (ovens, ranges, cooktops)
Dishwasher
Clothes washer and dryer
Icemaker (freestanding)
Built-in microwave
Trash compactor
Built-in food prep center (processors, etc.)
HVAC system units
Electrical system
Water heater
Plumbing
Garbage disposal
Garage door opener
Ceiling fans
Central vacuum
Comprehensive Plan
The Comprehensive Plan includes items in the Basic Plan, plus the following:
Plumbing stoppages
Ductwork
Pest control
Gas leaks
Telephone wiring
Smoke detectors
Alarm system wiring
Attic fans
Exhaust fans
Sump pumps
Doorbells
Hot / cold water dispensers
Hot water pump
Additional Services
After you’ve purchased a Basic or Comprehensive warranty from The Home Service Club and waited the required 30 days for the contract to go into effect, you can add on services for an extra annual fee.
Optional coverage include protection for your:
Sprinkler system
Freestanding freezer
Additional refrigerators
Sub-zero freezers
Well pump
Water softener
Jetted bathtub
Roof
Pool and spa
Sewage ejector pump
Outside water or power lines (running to an exterior building, for example)
How Much the Home Service Club Costs
Payments
Home repair costs vary in different parts of the country, so The Home Service Club also varies its fee structures in different markets.
The following prices could be different depending on your location:
Premiums: The Basic Plan costs around $500 a year in most areas. The Comprehensive Plan will cost closer to $750 a year. You can break these annual fees down into monthly payments. To get a precise quote customized to your property, you’ll have to enter some contact information on the company’s site.
Fees: Like any home warranty, The Home Service Club will charge an initial service fee to send a technician. The fee could be $65, $95, or $125 depending on your contract.
The Home Service Club explicitly states in its sample contract what it will and will not repair, along with the spending caps for a one-year term.
Annual caps
Many of the caps are lower than some other warranties, although it can be hard to know for sure since so many warranty contracts are hard to decipher.
Here’s a sample of The Home Service Club’s annual caps:
Heating system: $2,500
Air conditioner: $2,500
Ductwork: $750
Water heater: $500
Electrical system: $500
Built-in microwave: $500
Refrigerators: $750
Garbage disposal: $350
Clothes dryer: $800
Icemaker: $400
Additionally, and this is important, the warranty will place a comprehensive cap between $6,000 and $9,000 per year on repairs at your home. If you exceed your annual comprehensive cap, you’re no longer eligible for any service on any system.
The Basic Plan usually caps annual payouts at $6,000.
The Comprehensive Plan usually caps annual payouts at $9,000.
The Home Service Club Claims Process
When a covered system in your home needs a repair or replacement (and you’ve waited 30 days after signing the contract) you can contact The Home Service Club to file a claim.
How to File a Claim
The company offers 24-hour coverage, but only online. If you want to phone in a request, you’ll need to call during business hours in the Eastern time zone.
The company also limits coverage on weekends and holidays, even online, so expect to wait longer — up to 48 hours — for a response. Ordinarily, the company does its best to get help to your home within 12 hours.
Who Will Fix My System?
The Home Service Club has a network of about 15,000 contractors and technicians, and the company’s dispatchers will decide which specialist to send to your home. As a customer, you have no control over the process.
This in-network requirement is not unusual for a warranty, and most customers find it preferable to the other alternative: paying for a repair out of pocket from a local contractor and then trying to get reimbursement from the warranty.
What’s Required of Me?
Other than paying the premiums and the service fees — and staying within the annual caps on expenses — you’ll have a couple of other responsibilities:
Inspections and local codes: If your municipality requires an inspection of a repaired or replaced system, you’ll have to cover any associated costs. The warranty will not pay it. (Many municipalities do not charge for inspections.)
Regular maintenance: The Home Service Club does not require a pre-inspection of your home’s systems before you sign a contract, but it will not pay to repair systems damaged by a lack of regular maintenance. If you haven’t changed your air conditioner filter in, say, 18 months and this causes a breakdown, your warranty can refuse to cover the expense.
Also, you’ll need to be home, or arrange for someone else who is 18 or older, to be at your home during the repair process.
Canceling the Contract
You can cancel your warranty within the first 30 days at no charge except for an administrative fee up to $45. You can also cancel the contract anytime after the first 30 days, but you will not receive a full refund on premiums paid.
Your refund will be prorated depending on how much time has passed since you entered the contract.
The Home Service Club retains the right to cancel your contract if you don’t pay the premiums, of course. The company can also cancel your contract if you threaten service technicians or customer service reps or if the local laws in your area change in a way that makes service more expensive.
Transferring the contract: If you sell your home, you can arrange uninterrupted coverage for the buyer, but you’ll need to do so in advance. Warranties can be appealing selling points in the real estate market.
Alternatives to the Home Service Club
As you shop for a home warranty, be sure to consider some of the top alternatives to the Home Service Club below.
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Who Needs a Home Warranty?
Hundreds of thousands of homeowners opt for home warranties each year because they worry about how they’d afford a major home repair.
When you buy a new car or a new iMac, your warranty can almost guarantee your product will be repaired or replaced during the warranty’s period.
A home warranty can’t offer this kind of guarantee because the company didn’t make the products it agrees to protect. A better term for a home warranty may be “service contract.”
When you pay your premiums, you’re pooling your resources with thousands of other customers to shield yourself against unexpected home repair costs and service bills.
When Not to Buy a Home Warranty
If you don’t need this kind of shield, a warranty won’t make as much sense for you. For example, you may not need a home warranty if:
You could set aside money: Unexpected repairs could cost thousands of dollars, and you may need the money quickly, especially if your air conditioner needs to be replaced and it’s the middle of July. If you have a healthy emergency fund set up, you won’t need to rely so much on a warranty.
You could borrow money at low interest: Banks and other lenders, and even some contractors, offer low or no-interest borrowing promotions if you need a large repair and don’t have the cash. This option won’t work unless you have good credit, though. And stay away from this idea if you can’t repay the loan within the promotional interest-free period.
You could fix a lot of things yourself: If you are a contractor or if you’re experienced at repairing a wide variety of home systems, you may be your own warranty, though it’s still smart to set aside money for parts and new components.
Your house is brand new: New homes can have problems, too, but you may be less worried about replacing entire systems in a newer home. Also, many new systems in a home may already have their own manufacturer’s warranties.
When to Buy a Home Warranty
The best candidates for a home warranty such as The Home Service Club often include people who:
Have an older home: You can cross your fingers all day, but a 25-year-old HVAC system or a 15-year-old refrigerator may not last much longer. If you’ve bought an older home with older systems, a warranty could save you thousands of dollars on repairs.
Have limited financial flexibility: Sure, you’ll pay $500 or so a year in premiums with The Home Service Club, but the warranty could save you up to $6,000 if a lot of stuff went wrong at your home this year.
Wants a one-call solution: Some people just don’t have the time or energy to find quality contractors for expensive repairs. A warranty such as The Home Service Club’s plans offer convenience because you can call one number for most of your repair needs.
Is The Home Service Club Right for You?
Only you can decide whether The Home Service Club would be worthwhile for your home.
I will say this: I like the clarity of The Home Service Club when compared to other companies.
Premiums and fees may be higher than some other companies’ plans, and annual payout caps may also be lower with The Home Service Club in comparison to other contracts.
But with The Home Service Club, you have a pretty clear expectation for what you’re getting in return for those costs.
Too many warranties claim to offer instant service and complete coverage, all of which sounds great. Only later do customers learn about the warranty’s exclusions and limitations.
Studying the Contract Reduces Your Risk
Home warranties pitch the concept of “peace of mind” to customers who worry about excessive home repair costs. This is an abstract concept.
You need some concrete facts before signing a contract.
Fortunately, you can see a sample contract from The Home Service Club before you even share your email address or phone number with the company. Read the contract carefully to learn about its limitations.
Before signing, though, read over the actual contract you’ll be agreeing to because it could work a little differently from the sample contract.
A Warranty Isn’t a Long-Term Commitment
Unlike homeowners insurance, which you should always have in force to protect your property from external damage, a home warranty is an option. Most warranties, including The Home Service Club’s plans, work on annual contracts.
Someone who needs a warranty now but may not need it next year or in a few years can simply opt not to renew the contract.
Remember, too, that you’re not locking in a premium or fees for more than one year at a time. Next year the company could increase your premiums or raise service fees.
Bottom Line: Consider Your Options and Study the Fine Print
Warranties incite customer anger for one reason: when the peace of mind the warranty promises turns out to be a false sense of security.
Avoid this snare by reading any contract carefully before signing. Whether it’s the Home Service Club’s contract or another warranty company’s plan, it’ll be worth your time and money to understand each limitation of the contract.
Read it line by line. Make an evening of it after dinner.
Read it aloud if you need help staying awake.
This way you can find out exactly how the contract builds its promise to shield you from unexpected home repair expenses.