Are you buying a house and wonder how to choose a home warranty? Here are a couple thoughts for you to consider to help you better understand what a home warranty is and how it plays a part when buying a home.
What is a home warranty?
When a home warranty is part of a real estate transaction it is typically a one year service agreement. This is typically paid in full through escrow when the property transfers owners and not necessarily billed monthly like commonly advertised. A home warranty is also not a home insurance policy. Insurance is a separate policy and tends to help cover catastrophic events to the home. Where a home warranty helps cover breakdowns of the major systems and appliances of a home by repairing or replacing the items covered under the policy.
Each home warranty company offers different options and exclusions
When looking over plans you will clearly see that the pricing and service call fees vary between each company. This also seems to result in the coverages and exclusions varying so look over the service agreements to help you find the one that suites your needs and your new home. To get a 3rd party opinion on home warranty coverages and services check out the consumer affairs reviews. Not all of the companies will offer coverage in Arizona so listed below are a few I like:
AHS is the highest reviewed company by consumer affairs. It is the one I have on my house. They are also the home warranty company that Realty ONE Group has teamed up with. AHS offers 3 different packages: ShieldEssential, ShieldPlus, and ShieldComplete. The prices will vary depending on single family home (SFH) vs. condo/townhome, what plan you choose, and if you add any optional coverage for pools etc.
Landmark is also a great choice and comes highly reviewed. They offer extra services like re-key, pest control, and annual HVAC tune-ups as part of their covered services. There are many optional coverages available for additional appliances, roof leak repair, and exterior pipe leak repair coverage. Along with 4 different plans to choose from depending on how much you want covered and how much you want to spend on a home warranty.
What I like about First American is that they have been in the industry for over 30 years and are still one of the top reviewed companies. You can find similar services included in any of their three plans, including some optional items depending on your needs.
If you have any questions or interested in additional information, I am always happy to help!