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Home /  Home Warranty Insurance / Should You Renew Your Expiring Home Warranty?
last_updated_date Last updated: October 15th, 2021

What to do when home warranty expires – Renew or Nothing?

PUBLISHED: OCT 15, 2021 • 6 MINS READ

There are so many things to consider when the expiration date of your home warranty plan is coming close – Should you renew your plan? Have the plan prices increased? Should you look at other home warranty companies? And if you barely used it, you may be thinking about getting rid of it altogether.

Should I Renew My Home Warranty

However, considering how much money home warranties can help save when you have aging home systems and appliances, we recommend giving it more thought. We’ve tried to address any questions you might have around this time in this article.

What Can You Do At the End of The Warranty Term?

You can renew the existing plan if you are satisfied with the company’s performance. You can also add some new optional items to your plan. Depending on the company’s contract, they may waive the 30-day waiting period if you extend your policy. If you are very pleased with their services, you can check if they offer multi-year contracts.

Or you may want to change home warranty providers if you are dissatisfied with your existing provider. You can also get a new home warranty plan to experience some other companies’ perks.

On the other hand, if the home warranty did not work out for you, you might cancel it altogether. You may want to maintain an emergency repair fund instead. You can calculate the likelyrepair/replacement costs and top it up annually or monthly. Maintaining such funds is likely to be heavier on your pocket, though.

Renewing The Home Warranty? Factors to Consider

Coming up with $500-$1000 for each repair is a lot of money. It’s even harder to regularly come up with such amounts if your home devices break down frequently. This fact is why we opt for home warranties; you pay a smaller amount once and get numerous services. Think about the following factors when considering home warranty extension or renewal:

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How often did you use the plan?

Paying a service call fee of $50 – $150 feels like a fair deal, especially if you have a significant appliance or system malfunction like your water heater going bad. But, if you’ve had no service calls at all, you may want to see if your home devices are likely to break down next year.

You must also factor in the trade call fees; they have a means of adding up if you get 3 – 4 service visits a year. These costs are charged over and above the warranty premium amount.

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Cost savings

As the home warranty plans involve considerable overall fees, you should also check whether the services rendered have reduced your home maintenance cost burden. Some of the items you desire to be covered may be considered “optional home warranty coverage” and come with supplementary fees. However, keep in mind that repairing them without a home warranty could be more expensive.

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Age and coverage needs

The age of appliances and systems, such as AC, heat pump, pool, water heater, roof, garage door opener, etc., and their coverage needs are essential variables to consider while renewing your home warranty. The plans may also exclude consumable parts and accessories.

If the breakdowns happen due to non-covered parts and components, the warranty may not be of much help. However, if you see a replacement on the horizon, you may want the home warranty plan around since the companies offer replacement units or cash in lieu.

You may have more than one surprise and be very disappointed if you find out the warranty did not cover the particular kind of item, part, or breakdown. Renewal is a good time to reread the contract fine print and find a company that offers higher caps or a more comprehensive optional items range.

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Service quality

It is essential to review and examine whether you are happy with the services of the company. Contemplate the technicians’ work, the responsiveness of customer service, price, and the process of repairing or replacing devices.

How Much Peace Of Mind Did You Get?

Here is a list of questions to ask yourself about your home warranty company’s performance:

  • How quickly did the repair technicians arrive after scheduling?
  • How long did you have to wait for parts to arrive?
  • Choose reputed companies
  • Did you claim emergency services, and if yes, did they deliver?
  • Were any claims denied?
  • How many repair visits did you book?
  • How much of the coverage cap did you claim?
  • How long did the repairs last?
  • If you got a replacement, how much did the company reimburse?
  • How helpful were the customer service representatives?
  • Did they reimburse you for authorized third-party work?

What If You Want To Change the Company?

If you want to change home warranty companies, planning and purchasing a new plan early enough can ensure a seamless transition from the old plan to the new one. Most companies waive off the waiting period if you can show that you have continuous coverage. You can request a free quote here and make your decision a month before the expiry date. If you have a lapse in home warranty coverage, you may lose money if a breakdown occurs during the waiting period.

How Much Will It Cost To Renew A Home Warranty?

Renewing your home warranty will cost much the same as getting an all new plan. On average, a home warranty cost is between $20-$65 per month for premium and more if you want additional coverage. The trade service fee may range from $55-$150 per visit. You can procure a home warranty any time, but you should know that there will be a 30 day waiting period for it to go into effect, if you miss the expiry date.

Top 5 Home Warranty Companies

If you want to try a different company’s services, here are the top 5 options favored by users on our platform.

Deductible

$75

Monthly premiums

$41.66 – $45.83

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Discounts – $200 off + Free 2 months coverage + Free roof leak coverage

ServicePlus Home Warranty

Why we picked it

ServicePlus Home Warranty is well-rated for their comprehensive coverage plans and amazing offers, making them a very affordable option for homeowners. Their two plans cover about 20 critical home systems and appliances. They provide the option to include additional units of some devices with their add-on list.

Deductible

$75,$100,$125

Monthly premiums

$39.99 – $60

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Discounts – Multiple Property Discount + ($50 off) + Referral Discount ($25 Gift Card)

American Home Shield (AHS)

Why we picked it

American Home Shield is known for being the oldest home warranty company in the industry. They offer three plans now, having scrapped their customizable plan. However, they have some of the highest appliance caps in the industry. They have an overall favorable standing though some customers report service delays.

Deductible

$60 – $85

Monthly premiums

$46 – $55

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Discounts – Free month of coverage

Choice Home Warranty

Why we picked it

Choice Home Warranty has been well-received for their service record. They have covered over 1 million homes and responded to more than 4 million service requests. CHW has two plans covering major home systems and appliances. They have a good contractor network and offer quality customer support.

Deductible

$60

Monthly premiums

$41 – $46

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Discounts – $150 off + Free 2 months coverage + Free roof leak coverage

Select Home Warranty

Why we picked it

Select Home Warranty is one of the most affordable brands in the home warranty industry, offering coverage on par with more expensive options. They even cover items like lawn sprinklers and central vacuum systems in their add-on menu. They have multi-year contracts.

Deductible

$100, $125, $150

Monthly premiums

$27.99 – $39.99

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Discounts – Free 2 months coverage

Why we picked it

Cinch Home Services is a rising company that has been consolidating their industry footprint. They offer extensive home warranty coverage with three plans, including items like doorbells and food centers. They also provide services when rust problems crop up, and their 180 day workmanship guarantee is on the higher side as compared to the market.

Is Extending A Home Warranty Worth It?

Extending a home warranty can be a good idea to maintain your budget and get access to skilled service contractors. You can save money on expensive repairs and replacements. As a bonus, maintaining your home warranty eligibility will require you to carry out routine maintenance of your home systems and appliances, extending their lifespans.

FREQUENTLY ASKED QUESTIONS (FAQs)

Q.

My home came with a home warranty. Should I renew it next year?

A.

If you are considering what to do with the home warranty, refer to the questions in “How Much Peace of Mind Did You Get?”. Did the warranty turn out to be useful to you?

Second, was the home warranty a buyer’s plan or a homeowner’s plan transferred by the previous owner? If you choose to extend your buyer’s home warranty, it changes to homeowner coverage, and you can add anything else likely to malfunction soon. If it was a seller’s warranty, you will probably be asked to renew to a homeowner’s plan.

Even if you didn’t make any claims, it’s better to extend the complimentary home warranty since you would still be coping with the financial hole from a home purchase. Additional repair costs can leave you broke. A few hundred dollars on a home warranty is far better than spending thousands of dollars on frequent repairs.

Q.

Can I also get coverage against termite damage while renewing?

A.

If the home warranty company offers termite damage protection as an item and you didn’t get it before, you can undoubtedly have it included. You may need to change plans or add them as an optional item. Alternatively, you can change to a company that offers it.

Q.

Can I change the coverage options when renewing the plan?

A.

If the change centers around adding optional items to the coverage, you can easily renew the plan. You can also upgrade to a different plan.

Q.

How long does a home warranty last?

A.

Home warranties usually last for a set duration of one year. We have listed out the terms of popular home warranty companies.

  • American Home Shield standard contracts are for 12 months.
  • Choice Home Warranty policy begins 30 days after the application gets accepted and lasts for 365 days.
  • Standard ServicePlus Home Warranty contracts are for 365 days, and coverage begins after one’s application gets finalized. They offer two extra free months of coverage, bringing up the total term to 14 months.
  • Select Home Warranty policy lasts for one year plus two extra free months of coverage and starts after a 30 day waiting period.
Q.

Can you have two home warranties at the same time?

A.

Nothing is stopping you from getting two home warranties, but you don’t need two. Almost every company has one comprehensive warranty plan that covers everything you may need. You will just end up duplicating the coverage and wasting money.

Q.

How soon can you use a home warranty after purchase?

A.

There is a 30-day waiting period after the date of purchase with most home warranty companies. Once the duration is complete, you can start filing claims. If you renew your warranty from the same company or show proof of prior continuous coverage from a different company, you can start making claims immediately.

Q.

Should I extend my home warranty if I didn’t use it?

A.

It is better to extend your warranty as the chance of home systems and appliances breaking down is ever-present. You can keep having peace of mind from knowing that skilled contractors will arrive to fix your devices at a fraction of the cost with a home warranty.

Q.

What to do if the home warranty is expired?

A.

You can talk to the customer service representatives if the expiry date was not too long ago, and they may be able to help you get continuous coverage. Otherwise, it’s not a problem since you can get a new plan.

Q.

Can’t I just get home insurance instead of a home warranty?

A.

Home insurance is an entirely different product. It doesn’t cover repairs and replacements of home devices. It protects you against being liable for losses arising from natural disasters, fire, theft, etc.

Q.

How can I find out if another company is better?

A.

You can read home warranty reviews on our platform and check our detailed profiles and top company comparisons. Furthermore, you can ask around your social circle for recommendations.

Q.

Can I cancel my home warranty anytime?

A.

Yes, you can cancel if you’re not satisfied with the services. Most companies allow free cancellations within 15-30 days of the plan purchase. After that, they only refund the pro-rated amount minus any charges.

Q.

Will a home warranty replace my old systems?

A.

Yes, the company may replace your old systems if the breakdown cause is covered and they deem it not worth repairing. If they can’t provide a functionally equivalent replacement, they may offer cash instead.

Q.

What does a $500 home warranty cover?

A.

$500 is the average cost of most home warranty plans, usually at the higher end. Typically, you can avail coverage for a range of systems and appliances or an appliances-only plan for this price. If you want optional add-ons, the price will spike up.

Top home warranty Companies

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