6 Best Home Warranty Companies in New Jersey

You need a home warranty in New Jersey if you want protection on home appliances and systems beyond your savings account, including HVAC and plumbing systems, that aren’t covered by your homeowner’s insurance policy. While having an active home warranty policy is not a legal requirement in New Jersey, it can be a smart investment for many homeowners looking to avoid sudden expensive repairs, especially if these potentially high costs would present a financial hardship for your family.

The average cost of a home warranty in New Jersey is approximately $55 a month, or $600 to $700 annually, based on the quotes I received while secret shopping. The quotes I got were for a two-bedroom, two-bathroom single-family home with less than 5,000 square feet in Glen Rock, New Jersey. 

Some factors that may cause the cost of your home warranty to vary in New Jersey can include:

• Type of Plan: In my research, I found that many companies offer an appliance-only plan and a home systems-only plan. While they are affordable options and may be helpful to some, I recommend choosing more comprehensive plans that cover both systems and appliances. Be sure to check if your appliances or systems are covered by manufacturer’s warranties, as your home warranty provider will likely deny service to those appliances and systems. While these plans will certainly cost more per month, it is often worth the investment when something breaks down. 
• Location: The cost of living in your area will likely affect the cost of your coverage as areas thath have higher costs of living often cost more to cover because repairs, replacements, and cost of labor are often higher. If you live in a less expensive area, you may be able to save more, but a more expensive area will likely be accompanied by higher average home warranty costs.

You can save money when purchasing home warranties in New Jersey in a few ways:

• Look for discounts and research many companies: I advise requesting a minimum of three quotes from reputable providers, being sure to specifically ask about discounts, and compare the prices, plans, and discounts offered to see where you can find the best value for your needs.  
• Speak with a customer service representative: A customer service agent is a knowledgeable and helpful resource for you to use when shopping for home warranty coverage. They are aware of all available and applicable discounts and can even offer you a better deal than online quote generators from company websites can. 
• Choose add-ons wisely: Add-ons can provide excellent coverage for items not commonly covered, like pest control, electronics, and lighting fixtures. However, they do add on additional monthly costs. I advise comparing the cost of these additional items you could add to your coverage against the cost of that item and its common repair and/or replacement cost against the converge and its sample contract specifics, including exclusions. Personally, I would choose not to add electronics coverage to my plan because my Apple devices, including work laptop, are all covered with AppleCare. My partner, however, might choose to add electronics coverage because their laptop is Dell and they don’t have a manufacturer’s warranty on their device. 
• Adjusting your service fee: Some companies will allow you a choice of service fee, ranging from $65 to $125 in New Jersey based on my research at the time of writing. If you want the lowest possible monthly premium, you can opt to pay the highest service fee offered by the company you choose. Most companies on this list offer a quote calculator on their website so you can easily see how changing your deductible changes your monthly premium.

A home warranty is worth it in New Jersey if you’re concerned about potentially covering expensive out-of-pocket costs for home systems and appliance repairs or replacements, like your refrigerator or HVAC system. Consider that your HVAC unit stops working in the middle of the snowy winter. The average replacement cost to replace the unit is over $5,000, depending on your unit and amount of work needed. With the average temperatures in parts of New Jersey being between 15℉ and 30℉, living without a heating unit could be devastating. A home warranty helps to alleviate the stress of these possibilities, ensuring that you are supported in your times of need. 

 rnrnIn contrast to that drastic repair cost, a home warranty in America costs an average between $250 and $2,000 per year, compared to the average of over $2,000 out-of-pocket annual home maintenance costs. For homeowners that cannot afford a sudden expense, home warranties are a fantastic option for protecting themselves financially. 

 rnrnIf you are comfortable paying large out-of-pocket expenses for repairs or replacements, own a brand-new home, or have new appliances that are covered by a manufacturer’s warranty, a home warranty is not worth it in New Jersey. However, something to consider is that if your appliances are covered by manufacturer’s warranties, your systems may not be, and so a systems-only plan may be beneficial to you.