The Pros and Cons of Home Warranties



There are pros and cons to home warranties. First, they have a low coverage limit, with homeowners having little control over who will do the repairs. There are hidden costs and research required before purchasing. Finally, they come with drawbacks. Read on to learn about the pros and cons of home warranties and decide whether they’re right for you.

Low coverage limits

When shopping for an Arizona home warranty, check out the coverage limits. The coverage limits on home warranties are the amount you can get reimbursed for certain repairs. While you might be tempted to buy unlimited coverage, it is often difficult to pay for all of the repairs that could come up. Luckily, there are several different home warranties to choose from, and each one offers additional features and benefits.

First, it’s essential to read the fine print. Many home warranty providers cap the amount of money they will reimburse you for particular items. For example, America’s 1st Choice Home Club limits its liability to $500 a year for interior plumbing repairs. Home Warranty caps reimbursement at $1,500 per item. These low limits can lead to a nasty surprise when your household systems or appliances break. Make sure you read the fine print and choose a home warranty that covers your needs.

Lack of control over repairs

One of the problems associated with home warranties is that customers don’t get to choose the contractor or repair item they want to be fixed. Instead, the warranty company selects a contractor and chooses the repair item. The contractor’s reputation and responsiveness are irrelevant to the home warranty company, which is not in the business of serving homeowners. Instead, the company operates its interests. This may not be the best solution for homeowners, but it does make the repairs much more accessible.

Though it is often beyond your control, the incorrect installation might result in a refused claim. If your malfunctioning system or appliance results from improper installation, your home warranty company may be able to deny your claim. Furthermore, claims for systems and equipment that breach safety rules may be disallowed.


The cost of home warranties varies greatly depending on your plan type. Basic plans range from about $350 per year to around $650. Upgraded plans add additional coverage for an additional fee. In addition, some programs include service calls that cost between $50 and $125 each. Choosing a home warranty based on its coverage and features can save you hundreds, even thousands of dollars. However, remember that the more comprehensive the range, the higher the cost.

Before deciding on a home warranty plan, determine the scope of coverage. For example, do you need a different pool, spa, septic tank, or second refrigerator coverage? Many home warranties cover several systems, including electrical, plumbing, heating, and cooling. Some even cover extras such as an ice maker, garage door opener, or roof leaks. Be sure to compare multiple quotes before making a decision. If you are unsure of the coverage you need, consult a home warranty company to determine the cost of your specific plan.

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