Home Warranty 101: Regulations, Cost, and Everything You Need to Know to Find the Best Home Warranties in 2023

How are Home Warranty Companies Regulated?

Today, many homeowners avoid signing up for a home warranty because there have been a few issues with faulty agreements and hidden fees in the industry. But this doesn’t mean home warranty companies aren’t regulated. There are even more regulations now than when warranties became popular in the 1970s.

Read on to learn about how home warranties 2023 are regulated by law, and what you can do to find a company you can trust with your most valued home items.

What to Know About Home Warranties and Legal Regulations

Home warranties cover the costs of repairs and replacements for specific home items, such as appliances or home systems. Homeowners buy a warranty plan of their choice at an annual rate, then pay affordable service fees on an as-needed basis.

For example, when a homeowner needs their dishwasher serviced under a warranty, they simply place a claim with their warranty provider. Then they receive professional, quick service, ultimately saving them on costly out-of-pocket repairs.

There are federal and state regulations that warranty companies must follow to operate legally. Federal standards allow companies to do business under state jurisdiction. So depending on the state you live in, contract terms and conditions may vary.

Several organizations such as the National Home Service Contract Association (NHSCA) and the Federal Trade Commission (FTC) outline the federal guidelines that all states must abide by. Then, following state regulations and federal laws, warranty companies may create several coverage agreement options for homeowners to choose from.

Contractual Agreements of Home Warranty Plans

A home warranty is a binding agreement, meaning both the provider and the customer are liable to take action and partake in service as explained in the contract. Once you sign the dotted line, both you and the warranty provider must abide by the contract until the agreement expires or is terminated.

Here are a few ways you can avoid being scammed by companies performing outside of regulations:

• Read the contract agreements carefully and completely.
• Ask friends, family, and neighbors which warranty companies they trust.
• Talk with warranty company representatives to see how much they want you to understand your coverage options.
• Compare the costs of different warranty plans from multiple companies.
• Contact your state housing organizations for legal information about home warranty laws and coverage terms.
• Note: a well-written, legal home warranty contract will also include what’s not covered by the company.

There’s a reason home warranty companies get such a bad reputation in certain states. Some of them misinform customers or leave out crucial information. Even worse, some companies operate under vague contracts that leave too much room for loopholes. But there are ways to find providers that follow regulations.

Finding Regulated Home Warranty Coverage You Can Trust

Although there’s been plenty of scrutiny over home warranty providers in the United States, many companies strictly abide by regulations. It’s possible to find a provider you can trust, without worrying about being cheated out of the coverage you need.

At Elite Home Warranty, we saw the need for transparent contract agreements and custom coverage options that homeowners want today. That’s why we offer coverage in over 45 states and counting— making sure to deliver the best coverage and service to homeowners in every state.

Want to learn more about warranty regulations and protection for your home? Reach out to Elite Home Warranty today for a sample contract.

Elite Home Warranty Listed on NY Daily News

Elite Home Warranty is honored to be listed as the only BBB-accredited home warranty company on the New York Daily News resource! We’re proud to uphold such a standard of excellence that notes us as a trustworthy, reliable provider for homeowners across the United States.

According to the Better Business Bureau (BBB), the blue accredited seal is the “symbol of integrity in business.” The BBB is a non-profit organization that guides consumers on which brands and companies are trustworthy, satisfactory, and scam-free.

Read on to learn more about why Elite Home Warranty made the list.

Reliable Home Warranty Services

Elite Home Warranty guides homeowners through the type of coverage they need to save on home item repairs and replacements. We know that every homeowner is different, and every person has a unique lifestyle in today’s ever-changing society.

From antique homes with historical charm to modern luxury homes with smart appliances, the options for coverage are endless.

Customers get access to our professional network of service technicians who are ready to respond to warranty claims. These include HVAC repair, plumbing, electrical system repair, home appliance replacement, and pool care.

Coverage Terms and Agreements You Can Trust

Elite Home Warranty was founded on the belief that every homeowner deserves clear, transparent terms they can understand— and trust.

From the initial service agreement to the quality of service, everything is explained upfront in the contract. Homeowners can finally know what’s included in their warranty plans, comprehend all the terms of the contract, and communicate promptly with a home warranty representative whenever they need to.

Customizable Warranty Plans

It’s hard to find a home warranty provider that truly caters to the needs of homeowners. Most companies simply offer two to three set plans, so homeowners are stuck with items they don’t want or need to be covered.

With a customizable warranty plan, homeowners get to choose.

Elite Complete

This plan covers the home systems and appliances used daily, including:

• Refrigerator
• Washer/dryer
• Garbage disposal
• Range/oven/cooktop
• Dishwasher
• HVAC system
• Electrical system
• Plumbing system
• Water heater
• Garage door opener
• Ceiling fans
• Limited roof leak repair

Complete home warranty protection is an affordable option for those wanting an all-in-one plan.

Elite Appliances

Some homeowners prefer appliance coverage only. Why? These are the items that need to be fixed the most.

This plan includes:

• Refrigerator
• Washer
• Dryer
• Range/oven/cooktop
• Dishwasher
• Ceiling fans
• Garbage disposal
• Built-in microwave

Appliance plans can be customized with add-ons to cover valuable items not already included.

Elite Systems

Coverage for home systems is important, especially for older homes. Home systems include:

• Air conditioning system
• Heating system
• Electrical system
• Plumbing system
• Plumbing stoppage
• Water heater
• Garage door opener

Systems are expensive, and it’s financially difficult to deal with replacing something that breaks. This is a great plan to start with. Plus, custom items can be added on.

BBB-Approved Home Warranties

Whether you’re in the market for a new home warranty or want to switch providers in the future, look for the blue BBB seal. This means customers trust and recommend the company for everyday use.

Reach out to Elite Home Warranty today to get started.

 

How to Understand Your Home Warranty Coverage Benefits and Limitations

What do all the terms and conditions in a home warranty mean? How can you make sense of fees, claims, and stipulations? Keep reading to learn what you need to do to understand a home warranty contract.

 

The Purpose of a Home Warranty

A home warranty is a policy agreement signed between a homeowner and a warranty provider. By paying an annual cost, the homeowner relies on the home warranty company to cover the cost of home repairs and replacements.

Covered items are included in the agreement, ranging from total home systems like electric and plumbing to singular items like a dishwasher and refrigerator. When an item malfunctions or breaks, the home warranty relieves the homeowner from paying full-price for repairs.

 

Reviewing a Home Warranty Contract

You should review and thoroughly read your contract to clarify coverage costs, hidden fees, stipulations, and all the other relevant information. This prevents you, as a homeowner, from incurring any unexpected fees or claims requirements.

Understanding your home warranty contract allows you to better protect your finances and home. It should answer three main questions:

• What does my home warranty cover?
• When and how does my policy work?
• What are my responsibilities under this policy?

Since every home warranty agreement is different, it’s crucial to get all these questions answered before signing a contract. Read carefully!

Understanding a Home Warranty: Terms of the Contract

There are a few main terms within home warranty agreements. These outline the main benefits, obligations, and risks associated with agreeing to the home warranty. Let’s review them by section.

Homeowner tip: look for a home warranty company that provides a free warranty contract sample on their website.​​​​​​​

Home Warranty Terms and Conditions

The terms of the agreement are laid out in-depth in your home warranty contract. To understand each agreement, contracts often begin with a “terms and definitions” section. This explains what each word, date, and phrase means.

Warranty Agreement Summary

A warranty agreement summary lays out how the policy functions for the homeowner. This includes what items, types of damage, and repairs the warranty covers. It will also include effective dates, expiration dates, service fees, coverage limits, and more.

Home Warranty Claims

A claim is when a warranty holder submits a request to receive service from the warranty company. Today, many warranty companies have phone or online claims processes. Every contract has differences but there are typically four claims terms:

• Emergency claims
• Non-emergency claims
• Claims procedures
• Repeat claims

A home warranty contract should clearly define each of these claims. Your provider should walk you through the definitions and processes so you know how to make a claim when you need service.

Limitations and Exclusions

Limitations and exclusions clarify the conditions and costs for which the home warranty company is not responsible. This may include antique items or appliances already covered by a manufacturer’s warranty.

Policy Changes

If you need to request changes to your home warranty, this section explains how to do so. This section may include warranty transfers, policy cancellations, renewals, and more.

Find a Home Warranty Contract You Can Trust

We know how hard it can be to fully understand home warranty contracts. Many companies make their terms confusing, eager to profit off hidden fees or unclear terms written in legalese.

At Elite Home Warranty, we believe homeowners deserve transparent contracts they can fully comprehend. We also know that homeowners want customizable coverage for their homes in today’s advanced world.

That’s why we offer comprehensive, flexible warranty plans with clear policies. Our representatives walk you through everything you need to know to fully understand your home warranty contract.

 

How to File Your First Home Warranty Claim

There are multiple benefits to choosing a home warranty. It saves you money on household repairs, helps you cover expensive appliance replacements, and gives you peace of mind as a homeowner. But when it’s time to actually use your warranty, how do you reap all these benefits?

Keep reading to learn how to file a home warranty claim and save.

 

Submit a Claim With Your Home Warranty: Step by Step

Ready to file your first claim? Here’s what you need to do.

1. Know Your Coverage

Every home warranty comes with some limitations. It’s important to understand what your warranty covers. You can learn all about that in your contract.

Review your warranty plan: what’s covered? Typically, regular wear and tear of household appliances are covered under the contract. If you have a plan that includes home systems, like electricity or plumbing, there are different coverage terms and conditions.

Some warranty providers offer optional coverage for add-ons, like jacuzzis or sump pumps. When signing up for a warranty or renewing your plan, ask your provider about getting coverage for valued items so you aren’t left to cover the cost alone.

2. Document the Problem

Before you make a claim, write down all the information relevant to the issue. Gather the manufacturer name, make, and model, plus a detailed description of the problem. Is it an emergency? What do you see, hear, or smell from the item? These details will save you and your warranty provider time through the claims process.

3. Request a Service Visit

Call your warranty company or submit the claim online if that’s an option. You’ll need to provide your name, contact information, warranty plan, and policy number so a representative can access your account.

You’ll then explain your issue, including the details you gathered in Step 2. After delivering your claim, you’ll be asked to schedule a service visit. You may receive a call back to schedule one.

4. Pay Your Copayment Fee

When the service technician visits your home to conduct diagnostics and repairs on the item, they’ll communicate with the warranty company. If the problem matches the claim, it’ll likely be covered by your warranty. You only pay a small copayment fee as described in the contract.

Why Do Home Warranty Claims Get Denied?

You may be wondering why some claims get denied. There are a few common reasons, including:

• The claim item isn’t covered by your warranty plan.
• There was a faulty installation (or an item goes against building codes).
• Maintenance of the item was intentionally neglected by the homeowner, resulting in damage costs that are no longer covered.
• The home item is already covered by a manufacturer’s warranty.
• You already reached your payout cap— the maximum annual amount your provider will pay for.
• The home warranty is new and the claim falls within the waiting period (usually 30 days).

Denied claims are never ideal. Prevent claim failures by making sure you choose a reliable warranty company that helps you understand the warranty contract upfront.

Get a Home Warranty With an Easy Claims Process

To avoid issues with filing a warranty claim, get a warranty from a trustworthy company. At Elite Home Warranty, we make sure customers have access to not only the coverage they want and need but a seamless claims experience, too.

Get started with the most trusted home warranty provider today. Reach out to Elite Home Warranty.

 

Save Money and Protect Your Budget With a Home Warranty Plan

Buying and owning a home is one of the biggest financial investments you will ever make. Every penny that goes toward your home creates a suitable environment for you and your household. But let’s face it: sometimes, it all seems like too much. Homeowner’s insurance, mortgage fees, property tax— it all adds up! Fortunately, there’s one way homeowners can decrease costs. Read on to learn how a home warranty can save you money.

Avoid Expensive Replacement Costs

According to Rocket Mortgage, home warranties cost $300 to $600 per year on average. Compare that to the cost of replacing one or more appliances at thousands of dollars each. The price of a home warranty yields a major return on investment, saving you from paying out of pocket for each appliance.

Home warranties also cover home systems such as your electrical or plumbing system. Without a warranty, every time something goes wrong you have to find a technician, pay for every visit, handle diagnostic and repair costs, and then hope they solve the problem on the first try.

These fees accumulate over time. But with a home warranty, you only pay for the repairman visit and any custom modifications required for the repair. If an issue persists, the warranty often covers the cost so you don’t have to.

Cover Routine Maintenance Charges

Does a home warranty save money on appliances if they don’t need to be fully replaced? The answer is yes.

Many warranty providers cover the cost of routine maintenance and inspections. For instance, if your HVAC unit starts making strange noises, you pay the standard fee for the service technician to inspect it. If the technician discovers that you need a new valve but first must order the part, everything’s taken care of.

Maintain Your Home Budget

Because warranties help homeowners save on repairs, those saved dollars can be put to good use. You can estimate how much to pay for coverage each year and include prices in a home budget.

Plan for the future while ensuring you get the repairs you need in the meantime. Live with the peace of mind that you won’t need to scramble for a large, distressing lump sum to pay for a major repair. Instead of paying $1,500 for a new dishwasher, only pay the service fee laid out in your coverage agreement.

Get Special Deals

Some warranty companies offer seasonal deals and discounts. If you’re a new homeowner, ask about a move-in discount. Subscribe to your warranty provider’s newsletter to receive updates on holiday coupons. Take advantage of any customer discounts and service upgrades when you can.

Best Home Warranty for Homeowner Savings

Ready to save on inevitable home repairs and replacements? Set up a home warranty plan from a reputable company.

The best home warranty plan provides:

• Flexible coverage options
• Customizable plans
• Transparent terms and conditions
• A network of reliable service technicians
• Positive customer reviews

Because we care about homeowners and know what they need, Elite Home Warranty includes all these top features and more. To get started with a home warranty that can save you money, get a free quote today.