7 Best Home Warranty Companies in Wixom, MI

How Does a Home Warranty Work?

A home warranty is a protection plan that helps cut costs for Wixom homeowners needing appliance and system repairs. These plans provide financial coverage to fix or swap out appliances and systems that stop working due to normal wear and tear.

Homeowners file a claim and pay a service fee when something breaks. The home warranty provider then finds a contractor to make the fix or replacement. The only time you may pay out-of-pocket is if the repair or replacement costs exceed the item's coverage limit. A home warranty gives homeowners peace of mind, as it helps avoid high-priced emergency repairs. The coverage is especially helpful for those living in older houses or houses with fixtures near the end of their life span. However, people with newer homes and modern appliances may not require a home warranty.

What Does a Home Warranty Cover?

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

Key Home Warranty Terms to Know

There are a number of home warranty terms to understand before signing an agreement, including:

• Claim approval: The process a provider uses to validate that a requested repair or replacement is covered under your plan.
• Contract rate: The rate that your home warranty provider has pre-negotiated with its contractors. Normally, this rate is lower than what you'd pay retail.
• Coverage limits: Dollar limits that cap how much the warranty will pay for certain repairs or replacements. Check limits on appliances, air conditioning units, roof leaks, and similar repairs.
• Endorsements: Optional add-ons that expand coverage for additional systems like pools, well pumps, septic, and more. Endorsements typically cost an additional fee.
• Service fee: The amount you pay our of pocket per claim for access to a contractor and repair coverage.
• Trade call fee: An added fee that you'll sometimes need to pay for appliance-related claims.
• Deductible: The amount you're responsible for before your warranty covers the remainder of the cost. Deductibles apply to covered repairs and may be on a per-claim or yearly basis.

Keeping these important details in mind will help you understand a home warranty contract and select a plan that's tailored to protect your most important home systems. Make sure you discuss specifics of coverage with potential companies during the quote process, so you can avoid unexpected fees.

Key Factors in Choosing a Home Warranty Company

There are several important factors to consider when selecting a home warranty provider:

Coverage Options

Home warranty coverage can have major differences in what's included. Most plans include protection for heating, plumbing, electrical, AC, and appliances. More inclusive options also offer coverage on other items such as roof leaks, spas, pools, and well pumps. Look for providers with an array of coverage options, such as upgraded plans. Flexibility helps you tailor your protection for your home’s needs.

Service Fees

Expect to pay a per-service fee of $60-100 for each home warranty claim. As this charge applies to every separate claim, some homeowners prefer to choose a provider with lower service fees to maximize savings on every claim. Some companies also eliminate deductibles when customers have a claim-free period.

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), TrustPilot, or Google Reviews to research providers. Good ratings and reviews indicate that a provider is known for quality service.

Contractor Network

Home warranty providers maintain networks of contractors to handle covered repairs. More extensive networks improve the likelihood of getting qualified technicians to service your home ASAP. Contact potential providers to find out how many contractors they have in Wixom to get a sense of how quickly your repairs could be handled in an emergency.

Added Benefits

Some home warranty providers include extras such as energy efficiency upgrades, maintenance discounts, and smart home device protection. These perks add value beyond just repair coverage. Extra bonuses help maximize the usefulness of your home warranty.

Is a Home Warranty Worth it in Wixom?

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Benefits of a Home Warranty

Since temperatures in Wixom can be quite cold in the winter, the weather can put a lot of strain on your 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.

In addition, having a home warranty can save you some time by getting rid of the need to research service technicians — most providers will send a trusted professional right to your door to complete the repair or replacement. Another added benefit of having home warranty coverage is that it can raise your home’s real estate value. If you ever decide to sell your house, you may be able to transfer your home warranty plan to the new homebuyer depending on the provider you have your home warranty with.

Downsides of a Home Warranty

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

Another drawback is that home warranties may not include some repairs, such as those needed because of natural disasters. For example, if a tree falls onto your house and damages the roof, the impacted systems and appliances most likely won’t be covered by the home warranty.