What Is a Home Warranty & How it Can Save You Lots of Money

If you've purchased a home or are on the market for one, someone will mention the need for a home warranty policy. The big questions though are what they cover and whether or actually not you need one.

We're here to help you decide the answers to these questions.

What Is a Home Warranty?

A home warranty is essentially an insurance policy that covers your home. This policy is not to be confused with homeowners insurance, which covers damages or losses to your entire home or possessions (think fire, flood, and the like).

Home warranties cover items in your home that are breaking or malfunctioning. The home warranty company you contract with will send someone to help you fix it, pay for any damage, or replace the item altogether. 

Home warranties can cost hundreds of dollars annually and often must be paid in full. Some companies offer payment plans to spread out the expense for a new homeowner.

How Much Does a Home Warranty Cost?

Factors affecting the cost of a home warranty include:

– The company itself – Location and type of home (e.g., single-family, condominium, townhome) – Amount of coverage chosen (basic vs. extended)

Best Overall: American Home Shield – Best Basic Plan: Choice Home Warranty – Best Value: Select Home Warranty – Most Responsive: Liberty Home Guard

The Best Home Warranty Option

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