How to Pick a Home Warranty: The Ultimate Guide

Every homeowner feels the responsibility of safeguarding their home and belongings. Many rely on homeowners insurance to cover catastrophic events or natural disasters, but these policies don’t account for the normal wear and tear that affects essential appliances and major systems. Over time, breakdowns are inevitable, and repairs can be costly, making additional coverage a wise investment.

That’s where a home warranty comes in. Unlike a homeowners insurance policy, a home warranty offers financial protection for key home components, including appliances, HVAC systems, water and sewer lines, and more, depending on your coverage options selected. With the right home warranty, you can enjoy peace of mind, knowing that when a system fails, you have reliable coverage.

Whether you're a first-time homeowner or have lived in your home for years, a home warranty simplifies homeownership. This guide will walk you through what a home warranty covers, how to choose the right plan, and how to get the coverage you need.

What Is a Home Warranty Plan?

A home warranty plan is a home services contract that helps protect your major appliances and essential systems. It provides coverage for everyday breakdowns, helping to save money from mounting repair costs. Home warranties typically cover:

• Electrical systems
• HVAC systems
• Plumbing
• & Major household appliances (Ex: refrigerators, dishwashers, washers, dryers, and more)

When a covered item malfunctions, your home warranty provider can help connect you with a qualified service contractor to diagnose and repair the issue. Depending on the claim, they may even approve a full replacement.

The cost of a home warranty varies by company and coverage level.

Choosing a comprehensive home warranty plan from one of the best home warranty companies, like ARW Home, helps you avoid costly breakdowns, ensuring your most important home systems and appliances remain well-maintained.

Why Should You Buy a Home Warranty?

A home warranty is a smart investment for homeowners looking to simplify repairs, control costs, and keep their systems and home appliances running smoothly. Here’s why a home warranty can be a valuable addition:

Simple, One-Stop Coverage

When a covered home appliance or system breaks down, navigating repairs becomes much easier with a home warranty. Instead of searching for a reliable service provider, home warranty companies offer pre-vetted networks of licensed contractors and skilled professionals in your area. Submit a service request, and your home warranty company will promptly dispatch a certified technician to diagnose and resolve the issue, ensuring a smooth, hassle-free repair or replacement process.

Cost Control & Budget-Friendly Protection

Unexpected home repairs can be costly, but a home warranty coverage plan helps manage expenses with a predictable monthly or annual fee. Instead of paying full price for sudden breakdowns, you’ll pay a fixed service fee for each repair request. This structure helps homeowners avoid enormous out-of-pocket costs while keeping home maintenance expenses manageable.

Potential Home Value Growth

A well-maintained home retains and even enhances its market value. Keeping your home’s systems and appliances in top working condition ensures everyday functionality and makes your property more attractive to future home buyers. When it’s time to sell, having home warranty coverage in place may provide added confidence to potential buyers, making your home stand out in competitive markets.

When Is the Best Time to Buy a Home Warranty?

You can purchase a home warranty contract at any time, but there are key moments when securing coverage makes the most sense.

• When Buying a New Home – Whether you're purchasing a new home or moving into a previously owned property, a home warranty can provide immediate protection. Many homeowners opt to buy a plan at closing to ensure coverage from day one.
• For Older Homes with Aging Systems – If you're dealing with aging appliances, securing a home warranty contract before they fail can save you from repair bills. A home warranty helps extend the life of your systems and reduces out-of-pocket expenses.
• Before a Major Breakdown – Most home warranties have a waiting period, typically 30 days, before coverage begins. Buying a plan proactively ensures you're protected before repairs arise, rather than scrambling for solutions after a breakdown

Taking out a home warranty at the right time can relieve anxiety and stress over your home’s maintenance schedule.

How to Buy a Home Warranty

Purchasing a home warranty policy is straightforward, but selecting the right plan requires careful research. Follow these steps to ensure you get the best coverage for your home’s needs:

1. Research Home Warranty Providers
   Start by exploring home warranty companies in your area. Look for reviews on online platforms and check ratings with the Better Business Bureau (BBB) to gauge customer satisfaction and company reliability.
2. Compare Plans Based on Your Home's Needs
   Not all home warranty policies offer the same level of coverage. Assess your most critical home improvement needs. Choose a plan that best aligns with your requirements, whether it's protecting aging home appliances, HVAC systems, or plumbing.
3. Understand Costs and Service Fees
   Get a clear breakdown of all expenses, including premiums, service call fees, and deductibles. Some policies offer flexible pricing or add-ons to customize your coverage, so compare costs carefully.
4. Read the Contract Details
   Review the home warranty policy in detail, paying close attention to coverage limits, exclusions, and waiting periods. Understanding the fine print ensures there are no surprises when filing a claim.
5. Activate Your Coverage
   Once you’ve selected a provider, contact their customer service team or visit their website to finalize your purchase and begin coverage.

By following these steps, you can confidently choose a home warranty policy that provides reliable coverage and long-term assurance for your home improvement investments.

Reliable Home Warranty Coverage Backed by ARW Home

ARW Home offers the industry's most comprehensive and affordable home warranty plans. Recognized as the Best Overall Home Warranty Plan by U.S. News, ARW Home provides nationwide coverage across all 50 states with a network of over 15,000 pre-vetted, licensed technicians. As a family-owned and operated company, ARW takes pride in offering U.S.-based customer support and budget-friendly plans starting as low as $1 a day.

Let ARW Home help you handle the surprises of homeownership so you can focus on what truly matters.