Find the Best Home Warranty in Waco, TX

Benefits of a home warranty in Waco

Owning a home is an exciting experience, but not when unexpected repair costs accrue. If you’re not handy with tools or are a first-time homebuyer, purchasing a home warranty can protect you from the hassle of vetting repairmen and the expense of repairs. With the variety of seasons in Waco, having your appliances in top-notch condition is a must.

Home warranty coverage in Waco

A home warranty is similar to a homeowners insurance policy in that you pay an annual premium that covers certain mishaps. Unlike homeowners insurance, which covers the physical structure of your house, a home warranty provides repair and maintenance for major systems and appliances when they break.

Typically covered	Not usually covered
Air conditioner	Issues resulting from improper maintenance
Dishwasher	Pre-existing issues
Doorbell	Haul-away/disposal fees
Furnace/heating	Code violations
Ductwork	Work permits
Water heater	Sales tax
Electrical systems	Restoration to damaged surfaces

When a covered system breaks, call your home warranty company. A repairman in your area contracted by the company will inspect the problem for a trade service fee or deductible (usually under $100). If certain conditions are met (as per your contract), the home warranty company will replace your appliance or pay for repairs, sometimes up to a certain limit.

To truly understand what your warranty covers, read the fine print. Companies decline claims if issues don’t meet their criteria. The most common example of denied claims is for improper maintenance. It’s hard to agree on what is considered proper maintenance for an appliance and that disagreement may lead to denial and customer dissatisfaction.

How much does a home warranty in Waco cost?

Depending on the level of coverage, most home warranties cost between $300 and $500 annually for a basic package. This cost is paid upfront for an entire year. Keep in mind that each service call will likely result in a fee of $50-$100.

While the annual cost may seem low, it does not include service trade fees or deductibles. Many times, the amount that a home warranty will cover does not offset the entire cost. For example, many warranties cap HVAC costs at $1,500 per contract, but the average cost of replacing this system is roughly $5,000. That would leave homeowners with a $3,500 out-of-pocket bill.

In this situation, a homeowner can cash out the amount that the home warranty will cover and use it to hire their own contractor. But usually you will get a discount using the warranty company because of their partnerships with service companies. For appliances, which can be bought on sale or from third-party sites, it may be worth shopping around.

Your realtor may put in your sales contract that the seller will pay for a year’s home warranty. Some real estate agents may even gift buyers a home warranty at closing. In general, a home warranty is not always needed with a newly-built home, which typically comes with its own warranty.

Depending on the home and your personal preference, the added cost of home warranties can be worth it—especially if you hate scheduling service appointments and would rather fix problems with one call.