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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.
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.
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 likely repair/replacement costs and top it up annually or monthly. Maintaining such funds is likely to be heavier on your pocket, though.
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:
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.
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.
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.
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.
Here is a list of questions to ask yourself about your home warranty company’s performance:
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.
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.
Further reading- Is a home warranty worth your money?
If you want to try a different company’s services, here are the top 5 options favored by users on our platform.
$41.66 – $45.83
Discounts – $200 off + Free 2 months
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.
$39.99 – $60
Discounts – Multiple Property Discount + ($50 off) + Referral Discount ($25 Gift Card)
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.
$60 – $85
$46 – $55
Discounts – Free month of coverage
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.
$41 – $46
Discounts – $150 off + Free 2 months coverage + Free roof leak coverage
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.
$100, $125, $150
$27.99 – $39.99
Discounts – Free 2 months coverage
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.
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.
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.
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.
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.
Home warranty policies typically offer coverage for one whole year. However, some companies tend to throw in free coverage for an extra month or more. Some home warranty companies also offer multi-year contracts. To get a detailed answer, check out out article on Home Warranty Timelines.
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.
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.
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.
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.
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.
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.
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.
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.
$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.