What A Real Estate Investor Must Know About Home Warranty

Elias Hubbard
May 14, 2019



Home Warranty provides you with the much-needed protection against expensive expenses that may be incurred due to certain damages on your appliances. This kind of protection is what the warranty company either replaces or pays for in terms of the repairs.


In this post, we will be discussing everything that a real estate investor should know home warranties. By the end of this post, you may find yourself ready to decide whether this type of insurance is for you or not. If you’re curious about the best home warranty services, we are sure that you’ll be able to find one that suits your preferences, as well as budget.


Each time you approach your insurance company, for instance – a service request, you will notice that they are taking down details and notes and then request you for the deductible payment. The insurance company has close business with the contractors or vendors, specifically in the appliance repair sector. When you request for a repair service, the insurance company would call up the vendor and requests the service for you. In return, the contractor would call you to arrange a schedule for the home visit.


Once the contractor arrives, he will be examining the damaged appliance and simply fix the concerns, if found minor. However, the contractor might inform the insurance company and request approval if the damage is major. Once approved, the contractor will then fix your damaged appliance.


In some cases, your damaged appliances may require replacement of intricate little individual parts. In case this happens, the insurance company might procure them while sending it along with the contractor to fix your appliance. In other cases, the contractor may straight up say that your appliance is beyond repair. This is the time when the insurance company declares that they will be replacing your broken appliance with a new one. However, you should keep in mind that this feature is only applicable to the specific plan you have purchased.


Be sure to check out this detailed guide published by Forbes, specifically on how these home warranties work.


Best 5 Home Warranties


Choice Home Warranty


Choice Home Warranty provides you with coverage for the major appliances in your home. This real estate home warranty service prevents unexpected expenses that are mostly because of normal wear and tear. You only need to pay USD 420 annually but may have certain exclusions. This service is already very affordable and has a reliable and convenient 24-hour customer service, a built-in appliance coverage, as well as vetted technicians. However, you should be aware of its downsides, such as the abovementioned coverage limitations.


Select Home Warranty


Submitting your claim to Select Home Warranty is fairly easy. With its online platform, you get in touch with the customer service representative, not to mention its nationwide service network, as well as the plumbing stoppages. This home warranty service is available whatever your needs and budgets are, whether you are a home buyer, a homeowner, or realtor. In fact, this would be for anyone who wants to prevent costly expenses due to unexpected appliance repairs.


First American Home Warranty


The First American is one of the best real estate home warranty company, due to its organized contracts. While this may seem like a legal document, it still pretty much covers all that you need to know about the inclusions and what not. Once you have requested for a repair, the warranty company will ask you to pay the USD 75 fee, which may potentially lead to greater savings in the long run. When you calculate the annual costs, it would only be USD 300, as long as you pay it upfront.


Total Home Protection


Total Home Protection provides its customers with monthly or annual service plans, which already includes add-on coverages, allowing it to be very customizable. They also have a very affordable service rate of USD 60, making it worthy of your investment. What’s great about it is that they do the hard work of finding the contractors, in case you already got your hands full.


Liberty Home Guard


Liberty Home Guard is a warranty service dedicated to the needs of its customers. It offers several plans, according to their customers budget, preferences, and needs. To add, this home warranty company offers an extensive claim reimbursement, including programs that gives you options on cash payouts and upgrades.


Choosing the Best Home Warranty


·         Coverage

The coverage is dependent on the purchase’s overall value. Most home warranty services cover major appliances, heating and cooling systems, plumbing and electrical systems. However, you should also be aware of each service’s exclusions.


·         Benefits

When searching for the best home warranty, check if it offers protection on unexpected appliance repairs and if needed, replacement. It would also be in the advantage of the homeowner if there is no need to follow on the vendors and if the major appliances are already covered even under the most basic plan. To add, take the time to study the policies and see if the company provides you with ongoing protection, which may be renewable annually.


·         Exclusions

These are very important, as you may see it as the determining factor for your subscription. While most of these home warranty companies do not offer services for structural and pre-existing problems, appliances that were not maintained properly, as well as certain appliances such as septic system, garden sprinklers, wine coolers, it would still be in your benefit to review which ones offer these services.


What Is Covered with Home Warranty and What Is Not?


Standard plans cover repairs on the following: air conditioning, telephone systems and wiring, plumbing, refrigerator, central heating systems, built-in compactor, built-in dishwasher, water heater, ceiling fans, ovens, smoke detectors, range hoods, garbage disposals, cooktops, doorbells, humidifiers, toilets, sump pumps, and built-in microwaves, among others.


However, these repairs are often omitted from the basic plans: hot tubs, central vacuum, septic system, washing machine, office package, spa or pools, food spoilage, outdoor water systems, home entertainment, standalone freezer, and second air conditioner, among others.


If you’re curious about the common breakdowns in homes, head on over to this article published by Mashable.




Choosing the home warranty would be a pain, especially if you do not know the basics. With this guide on how to choose home warranty, we hope that you’ll now be able to decide which one suits your home best. With factors such as the annual cost, inclusions, and benefits, we guarantee that the decision making will now be a lot easier.



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