6 Best Home Warranty Companies in Peoria City, IL

How Does a Home Warranty Work?

A home warranty is a protection plan that assists Peoria City homeowners reduce the costs of appliance and system repairs. The plans provide financial coverage to repair or swap out appliances and systems that break down due to normal wear and tear.

When something breaks down, you submit a claim and pay a service fee. The home warranty company then arranges a contractor to handle the repair or replacement. Homeowners may have out-of-pocket costs only if the repair or replacement goes over the item's coverage limit. A home warranty gives peace of mind to homeowners, as it helps prevent costly emergency repairs. Home warranties are particularly useful for older construction homes with aging systems. New homes with up-to-date appliances might not require a home warranty.

What Does a Home Warranty Cover?

Home warranties cover your home systems and appliances. Common covered appliances are dishwashers, microwaves, washers, garbage disposals, dryers, refrigerators, and more. Included systems are normally electrical, heating, plumbing, and air conditioning. Many home warranty providers offer add-on coverage for septic systems, roof leaks, central vacuums, and locksmiths. Peoria City should understand that most home warranty plans have a 30-day waiting period before repair claims will be approved. Most policies also only cover repairs and replacements due to normal wear and tear. Home warranties don't include cosmetic issues, natural disasters, pre-existing conditions, or misusing a system or appliance. Be diligent about completing preventative maintenance to help guarantee your next repair or replacement is covered.

Key Home Warranty Terms to Know

Before signing a home warranty contract, you should know key terms like:

• Contract rate: A pre-negotiated rate that your home warranty provider has worked out with contractors. This rate is typically less than what you would pay retail.
• Endorsements: Optional add-on coverage for systems such as septic, well pumps, pools and more. Endorsements typically come with an additional fee.
• Claim approval: The process a provider uses to validate that a requested repair or replacement is covered under your plan.
• Trade call fee: An additional fee that's sometimes required to appliance-related claims.
• Service fee: The out-of-pocket cost you pay per claim for access to a contractor and repair coverage.
• Coverage limits: Dollar limits that cap how much the warranty will pay for certain repairs or replacements. Check limits on air conditioning units, appliances, roof leaks, and similar repairs.
• Deductible: How much you pay for a covered repair before your warranty covers the rest. Deductibles can be per-claim or yearly.

With these important considerations in mind, you'll be able to understand pricing and choose the right home warranty to protect your most essential home systems. During the quoting process, make sure you review coverage details with potential companies, so you don't encounter any unexpected fees.

Key Factors in Choosing a Home Warranty Company

When you're deciding on a home warranty provider, there are several important things to take into account:

Coverage Options

Home warranty coverage varies, although most plans provide coverage for electrical, heating, AC, plumbing, and appliances. More comprehensive options may also provide protection for extra things such as well pumps, spas, roof leaks, and pools. Look for companies with varied coverage options, including upgraded plans. This helps you customize your plan to your home's needs.

Service Fees

You'll pay a service fee, typically $60–100, for each claim filed with your home warranty provider. These fees to accumulate quickly with each claim, so you may seek out companies advertising lower service fees to optimize savings on each repair claim. Certain companies may eliminate deductibles after a customer goes a period of time with no claims filed.

Reputation

A home warranty company's reputation can offer insight into things such as approval rates for claims, contractor quality, speed of repairs, and customer satisfaction. Look at third-party review sites such as the Better Business Bureau (BBB), Google Reviews, or TrustPilot to research companies. Good ratings and reviews indicate that a provider is known for top-tier service.

Contractor Network

Home warranty providers have networks of contractors to handle covered repairs. Larger networks increase the likelihood of getting qualified technicians to service your home ASAP. Ask potential providers how many contractors they have in Peoria City to get a sense of how quickly your repairs could be handled in an emergency.

Added Benefits

Home warranty companies may include extras such as energy efficiency upgrades, coverage for smart home devices, and maintenance discounts. These extras add value beyond basic repair coverage. Added perks can maximize the usefulness of your home warranty.

Is a Home Warranty Worth it in Peoria City?

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Benefits of a Home Warranty

Since temperatures in Peoria City can be quite hot in the summer, the weather can put a lot of strain on your air conditioning unit and HVAC system. Purchasing a home warranty policy can help homeowners save money if one of these systems or appliances stops working all of a sudden.

Not only does a home warranty give you some savings, but it also saves you time. If an appliance breaks down, the last thing you want to do is find a technician and schedule a repair. A home warranty handles this process by sending trusted professionals to your door when you need them most. Plus, though it varies by company, some providers will allow you to transfer your warranty if you sell your home. This can make your home more attractive to potential homebuyers and help your home sell faster.

Downsides of a Home Warranty

Home warranties also have some cons. Though it can save you time when the home warranty sends out a repair person who carries out the repair for you, some may not like this, and they would prefer to select a contractor themselves. If that’s the case for you, some home warranty companies allow you to choose a contractor.

Another thing to take into consideration is that some providers don’t cover pre-existing conditions and may require an inspection before your coverage can begin. Ask the home warranty provider for clarification about this if you aren’t sure or if this is a problem for you.