Benefits of a Home Warranty and How to Choose a Provider


A home warranty is a service agreement entitled to cover the cost of repair or replacement when major home appliances and components break down. The warranty provides financial protection against unforeseen and expensive home repairs.

The home warranty contract is drawn between the homeowners and the home warranty company. The home warranty company provides discounted replacement and repair services on significant home components and appliances like refrigerators and furnaces.

These companies have partnerships with approved service providers. When a homeowner reports an issue, the home warranty company sends a registered service provider to examine the problem. If the problem is covered by the warranty, the service provider repairs or replaces the component. While the home warranty is often a yearly contract, the homeowner must pay a small service fee to the service provider.

Benefits of a Home Warranty

There are a couple of advantages worth highlighting.

#1 Appliance or Component Protection

It can cost a lot to replace any home appliance or component. With a home warranty, you don’t need to incur the costs of replacing them. The home warranty provider will offer repair or replacement services if the issue is covered in the warranty agreement.

#2 Search for a Technician

It’s tough to find a qualified and experienced technician to repair a damaged home component. The homeowner must spend a lot of time calling up service providers, getting a quotation, and appointing a technician.

All these hassles evaporate if there is an agreement with a home warranty service provider. All the homeowner needs to do is call the home warranty provider and pay a marginal fee to avail the services.

#3 Home Value

If the homeowner wishes to sell the home in the future, having the Home Warranty Contract as part of the deal certainly adds value to the property. The new homeowner will feel relaxed about home appliance security.

Home Warranty and Home Insurance are two different things. While the home warranty covers home appliances and components, the home insurance covers significant perils like property crimes, fires, and water damages to the structures. Both, the home warranty and home insurance are essential.

You can learn more about home warranty benefits through this detailed article.

Choosing a Home Warranty Provider

Selecting the appropriate home warranty company is tough as there are many home warranty providers in the market. One of the recommended ways to pick one is to refer this list of California’s top rated home warranties listicle that curates home warranty providers based on their Consumer Affairs, Better Business Bureau and Yelp reviews.

All the companies are organized by an overall rating, mentioning the location of their clients, types of plans offered, level of customer services and BBB ratings. Not only for California, but it's also easy to locate other home warranty providers based in cities like Nevada, Utah, and Arizona.

If vetted and verified listicles aren’t sufficient, consider these methods to choose a home warranty provider.

#1 Check their License

The ideal home warranty company should have a relevant license endowed by the specific state. Licensing isn’t enough, though. Check with the state licensing agency if there are any registered complaints against the company.

It is an excellent way to check the background of various home warranty companies. For example, in California, the California Department of Insurance is entrusted with the task of giving licenses to home warranty companies. Relevant information about the companies is publicly displayed on the department website.

#2 Service Fees

Ultimately, the reason for choosing a home warranty company is to lessen the burden of on-the-spot repairs or high replacement cost. Home warranty companies have two charges - a yearly fee for the agreement and a flat service fee for a home visit by the repair person.

The flat service fee depends on the nature of the home warranty policy. Opting for a more expensive plan reduces the service fee, marginally.

#3 Coverage

Read the fine line before signing on the dotted line. Not all home warranty providers are equal. They have custom policy standards. One home warranty provider might include refrigerators for repairs or replacement, but the other home warranty provider might not.

Read the terms and conditions of the agreement in detail to understand the inclusion of home items for warranty, exclusions, and when an item is considered under warranty and when it is not.


A home warranty agreement is an asset to any homeowner. It reduces costs of repair drastically.

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About the Author

Chitraparna Sinha

Chitraparna Sinha is the Founder and Director of Esmee Network. She's also a guest contributor for

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