If you’re wondering how much a home warranty will cost, there are two main costs: the premium and the service fee. The premium will be paid each month or yearly, and you’ll pay the fee to the service technician each time you need to file a claim. The service fee is smaller, more like a co-pay, but is still included in the price. Once the home warranty has been in effect for a year, the premium will stay the same.
Price varies by company.
Whether you need a whole-house or individual coverage, the price varies by the First American Home Warranty company. The number of companies varies, and the number of coverage options varies, too. There are many different plans, including a basic plan that covers appliances and is affordable at $30 a month. You can also opt for a customized package with different add-ons for a premium price. Luckily, home warranty companies are here to help.
Prices vary by plan and state, but the average cost is between $200 and $1843 per year. However, prices may vary by as much as $7,500, depending on the add-ons you purchase and the benefits you choose. For example, a comprehensive plan with two or three years of coverage may range from $600 to $600 each year, and a platinum-level service plan can range from $55 to $125.
Limitations and exclusions
If you want to get the most out of your home warranty, read all the information you receive. Many home warranty contracts only cover specific appliances and parts. Additionally, they do not cover accessories for appliances and systems, so make sure you read the fine print before you sign. A home warranty is valuable to your protection, but it is not a replacement for every malfunctioning device. In addition, it does not cover unforeseen expenses.
Some home warranty contracts will have monetary limits on certain parts and systems. If these limits exceed the coverage amount, your home warranty plan may not pay for the repairs or replacements you require. This coverage is typically for a limited period, and there may be excluded situations. Some warranties will cover all parts and systems of a home, while others will only cover specific parts of the house.
Cash payouts
When buying a home warranty, there are several things to consider, including the payout cap, which limits the amount of money a home warranty company will pay for repairs. In addition to payout caps, a home warranty will typically specify which systems and appliances are covered. Also, read the terms and conditions of the home warranty plan you purchase before signing on the dotted line. Cash payouts on home warranty plans are a major part of the decision-making process when buying a new house, so make sure you understand what your plan offers.
Additional coverages
If you’re looking for comprehensive coverage for the major systems in your home, a home warranty is a good idea. However, some plans include limited coverage for systems and specific line items, like the roof. Some plans even cover certain specialized appliances. Home warranty providers often offer them as incentives to buyers. While they may not always cover the problems you’re most concerned about, they can provide valuable peace of mind in the long run.
The basic coverage on a home warranty usually includes repairs for heating and cooling systems and appliances. You can choose additional coverages for specific systems and appliances, such as dishwashers and garbage disposal units. Some warranties even protect against water damage to swimming pools and hot tubs. Depending on the company and the extent of coverage, you may need additional coverage. When deciding which home warranty to get, check for these specifics.
