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When a manufacturer's warranty and an extended warranty to overlap, it means that both warranties cover the product over the same period of time. Also, it means that both of the warranties of the product covers the same problems.
A home warranty isn't worth it if: The warranty covers only the least expensive solution to the problem, which could be recurring repairs.
Home warranty cost Another big factor in deciding if a home warranty is worth buying is its cost. Basic coverage can start at about $300 and go up to $600 or more. Some home warranties charge for a service call, such as $75 or so, while others allow unlimited service calls.
Are Home Warranties Worth the Cost? In some cases, a home warranty can help you save substantially on expensive home repair services. However, if the warranty doesn't cover your claims, or you don't need any repairs during the warranty period, you may feel that you wasted money invested in a home warranty program.
Before buying a home warranty, learn what coverage you may already have. For example, if you're buying a newly built home, know that: The home appliances and systems typically have one-year warranties. Most states require builders to warranty the home's structural elements for up to 10 years.
Best for Coverage Options: American Home Shield American Home Shield has been in business for nearly 50 years. It's the largest, most-chosen home warranty provider, and it pays out more service requests than any other home warranty company. The company offers several plans.
If you're spending $800, $1,500 or $3,000 for an appliance, then it's definitely worth getting one, Rimini says. Others, though, don't believe they're worth the cost. For example, warranties may run for as little as one year or extend up to five or more years, and cost less if purchased for a longer period of time.
While yearly fees do vary by plan, on average, Choice Home Warranty costs $450 and American Home Shield costs $600. American Home Shield also provides the option to pay a higher service call fee (between $100 and $125 per visit) in exchange for a lower annual cost, while Choice Home Warranty has an overall lower cost.
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