Home Warranty Deductible: Things to Know Before Buying a Plan

A home warranty saves on appliance repair and replacement costs, but homeowners must pay a charge and the monthly or annual premium known as a deductible. Home warranty deductible is a fixed expense that the owner will have to pay when a technician visits to repair or replace household items. 

This article has information about the deductibles and similar expenses of the home warranty. It can also help you determine which home warranty coverage suits you well. Let’s go ahead!

Why Do Home Warranties Have Deductibles?

Deductibles matter for home warranties as they include labor costs, and the homeowners must pay them to the appointed service technician. Most companies charge a service fee for supporting the technicians who repair/replace malfunctioning home systems and appliances. It helps keep the home plans low and benefits the company and its customers. 

How Much Is A Home Warranty Service Fee?

A home warranty service fee can differ depending on the home warranty company. Some give homeowners the freedom to select their own service fee, while some have a fixed price. A trade call fee can cost between $50 to $150, which usually depends on the selected plan.

How Do Home Warranty Deductibles Work?

The deductibles must be paid after the service technician arrives at your home. Some home warranty companies offer the freedom to choose your licensed contractor, while others don’t. Moving forward, here is the procedure that is usually followed. 

• Whenever you file a claim, the technician will visit your home, and you have to pay the deductible before the service starts. Also, the cost might go beyond the coverage, so the homeowner must pay the additional expenses themselves. 
• Usually, you get a workmanship and part guarantee of 30-90 days. If the item breaks down within the warranty period, you won’t have to pay the required trade service fee again. 
• If there’s an issue that the same technician can’t resolve, you will have to file another claim request. The company will then assign another technician, and you must pay another trade service call fee. 

How To Select A Company With An Affordable Service Fee?

As there are different companies in the market, we suggest taking a free quote from each company and knowing about their deductibles. Some companies provide the option of a service call fee, while some have a standard service fee for everyone.

To help you, we have curated a list of the best-in-market companies. We have shortlisted these companies based on their costs, coverage caps, inclusions, and customer reviews. Head to the next section to learn more! 

Comparison Of The Top 5 Home Warranty With Affordable Service Fees

Here is a comparison of the top 5 home warranty companies with affordable service fees: 

These companies are chosen as per their inclusions, generous coverage caps, service quality, and unique offerings to homeowners. The company has positive ratings on various customer review platforms along with all these features.

Are There Any Other Costs Associated With A Home Warranty?

Costs associated with a home warranty include the yearly or monthly premium and deductible or trade service fee. Homeowners may also have to pay cancellation fees if they cancel the home warranty. 

You might have to pay for additional repair services if the reason for the malfunction is not mentioned in the company’s inclusions. 

A home warranty plan has certain coverage limitations. There is a cap on the amount that will be paid for the repair/replacement of the covered items within the timeframe. For instance, if an HVAC needs to be fixed and the repair costs go up to $3,000, and your warranty plan has a coverage limit of $1,500, you will have to pay the $1500 difference.

Also, some companies restrict the number of claims customers can file within a year. If the claim limit is exhausted, you must hire a technician and pay for the service. 

Is A Home Warranty Worth It?

A home warranty is worth it as It offers safety against unforeseen repairs/replacement due to normal wear and tear. Here are some of the reasons why a home warranty is worth it for homeowners: 

Price: You will get coverage for major home appliances/systems for a relatively low price ranging from $25 to $100 per month. Granted, you won’t need regular maintenance and don’t have to pay regular deductibles. 

Peace of mind: By knowing that you have protection against unforeseen circumstances, you will have peace of mind. You can focus on other important issues by going for a home warranty. 

Expert service: Home warranty has an extensive contractor network, so you won’t have to worry about whom to reach in case of a breakdown. 

Moving forward, here are some of the times when you should go for a home warranty: 

• You have an older home 
• You have older appliances 
• You need protection against unexpected repairs 
• You don’t have any emergency repair fund 
• You don’t want to worry about the expensive repairs

Concluding the article, you must consider different things before going for a home warranty. You should get a quote from 3-4 desired companies, depending on your choice, plan’s price, deductible, and more. 

 FAQs

1. Are Home Warranty Costs Tax-Deductible?

No, the home warranty costs are not tax-deductible, and you won’t be able to deduct it from such expenses. 

2. What Is Typically Covered Under A Home Warranty?

A home warranty usually covers repairing or replacing major home systems and appliances caused by normal wear and tear. It covers air conditioning, fridge, dishwasher, and more. 

3. How Do I Make A Home Warranty Claim?

A home warranty claim can easily be made by visiting the company’s website or calling them on their respective phone numbers. After a claim is made, a technician will be assigned to fix the problem. 

4. Who Pays For The Home Warranty, Seller, Or Buyer?

Usually, a seller pays for the home warranty as it appreciates the home’s value and covers any potential repairs during the selling process. 

5. What Happens If You Don’t Pay A Service Fee?

If the homeowner refuses to pay a home warranty service fee, the technician won’t proceed with the repair/replacement. 

6. Can You Cancel A Home Warranty Anytime?

Yes, you can cancel a home warranty anytime. However, you will have to pay cancellation fees to the home warranty provider after a certain period of time. 

7. How Much Should I Pay For A Home Warranty?

The annual average plan can cost from $300-$600 yearly, depending on the home warranty provider. A monthly payment can range from somewhere between $25 to $50.