What Is Home Repair Insurance?

What is covered by home repair insurance?

Home repair insurance only covers items that are explicitly written into the contract that have broken from normal wear and tear. Most home warranty providers have three levels of coverage. Basic plans cover everyday appliances and/or systems such as dishwashers and garage door openers. You can upgrade to an enhanced plan that includes coverage for additional items like a jetted bathtub or a clothes washer and dryer. You can also customize your plan with optional add-ons for special features like a well pump or guest house.

Here are some common appliances that are covered under home repair insurance:

What do home warranties not cover?

How much is home warranty insurance?

Home warranty insurance costs $25 to $67 per month on average. You should expect to pay upwards of $50 for more comprehensive coverage that protects additional items like a freestanding ice maker or well pump. However, you may be able to get a cheaper home warranty by building your own plan and only paying for custom coverage of a small group of select items. Additionally, whenever you submit a claim for service, you’ll likely pay a service fee that ranges between $75 and $125.

The total cost of home repair insurance depends on the provider you purchase the coverage from, the amount of coverage you want, and where you live. Note: the size and age of your home, appliances, and systems should not affect coverage or costs unless you live in a brand new home or one that’s larger than 5,000 square feet.

How to make a service request

The majority of home repair insurance providers strive for responsive service. Many of them will schedule an appointment with a technician within 48 hours of receiving the homeowner’s claim. As with all home services, this process could take longer on weekends and holidays and it’s up to the company to decide whether your claim is an emergency—not you. Therefore, you should contact your home warranty company as soon as an issue arises to expedite the process. Most providers prefer to receive claims within three days of an item breaking. To submit a service request, you can call the company’s customer service line or file a claim online. Here’s a checklist we recommend:

• Do check your contract to make sure the broken item is covered and meets the criteria of normal wear and tear, proper installation, and routine maintenance.
• Do file a claim as soon as a covered item fails or malfunctions.
• Don’t hire your own contractor. One of the luxuries of a home warranty is access to a network of vetted service providers in your area. The home warranty provider will schedule service with one of their pre-approved contractors for you.
• Do prepare to pay the technician a service fee at the time of service.
• Do ask if you will be charged a service fee for repeat visits if the problem persists. The answer to this should be no. Most repairs should be guaranteed for 30 to 90 days.
• Do ask whether the provider will replace an item it cannot repair, but don’t expect them to match the replacement to the make or model of your old appliance.

Do I need home repair insurance?

While home repair insurance is optional, it can save customers thousands of dollars and ease their minds about costly repairs and replacements. It’s inevitable that our home’s core components will eventually wear down and break, so House Method recommends home repair insurance to all homeowners, especially first-time home buyers and owners of older homes.

By closing day, first-time home buyers are overwhelmed and often over budget. To ease an anxious buyer’s mind of potential repairs they’re now responsible for, we suggest scrounging up $30 a month for a basic home protection plan—less than the price of dinner for two. Customers can always cancel after they’ve settled in.

Owners of older homes should also take advantage of home repair insurance. Most home warranties cover appliances and systems regardless of age. As long as they were properly installed and are well-maintained, a home protection plan is a great birthday gift to decade-old appliances. House Method has awarded Choice Home Warranty as the best home repair insurance provider for older homes.

Home sellers, realtors, and rental property owners can all benefit from home repair insurance as well. Home warranty coverage is a great marketing tool and a cost-effective solution to streamlining maintenance.

What is the best home repair insurance?

Before buying home repair insurance, you should compare home warranty companies until you’re confident that the one you choose is the right plan for you and your wallet. House Method did research for our readers to save you time and money. We called companies, asked agents a laundry list of questions, and negotiated quotes to find out how low they would go. We also reviewed the best home warranties based on ratings and reviews from customers, accredited organizations, and other review sites like ours. Here’s what our team found.