How to Choose an Alaska Home Warranty
Depending on what type of coverage you have under your home insurance policy, an Alaska home warranty may be a valuable investment. Here’s what to know.
Written by Elaine Yang
Reviewed by Melanie Reiff
Be careful when deciding to invest in an
Alaska
home warranty. While many home warranties will help you reduce the costs associated with unexpected appliance or system repairs, some companies may not provide you with quality service. Buying a home today is more expensive than ever. Modern housing sells for exponentially high prices, and the costs associated with homeownership are elevated, too—like home repair or appliance replacement costs.
The
car
and home insurance
super app Jerry
knows how tough it can be to continue investing in your home. That’s why Jerry has put together this guide to the pros and cons of purchasing a home warranty in Alaska. Whether you’re looking to purchase a home warranty or you simply want to learn more about them, we’ve got you covered. Let Jerry find you the best homeowners insurance policy for your needs
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What is a home warranty?
Essentially a service contract, a home warranty will get you a discounted rate if you ever need to repair or replace appliances and home systems like plumbing, heating, air ducts, fridges, dishwashers, and more.
This coverage typically lasts for a year at a time, and you’ll need to repurchase your home warranty after your term if you’d like to continue your coverage.
Home warranty vs. home insurance
Home warranties are often confused with home insurance.
Home insurance is broader and covers your home’s physical structure and your belongings—but only against certain named perils. While home insurance can cover the costs of replacing a stove if it is damaged due to something like a break-in or fire, it does not reimburse you if your stove breaks down due to wear and tear or age.
In contrast, a home warranty applies specifically to situations where key systems and appliances in your home degrade over time with use and need to be repaired or replaced.
Keep in mind that a home warranty doesn’t cover repairs or replacements that are caused by negligence. This means that if you have intentionally damaged these appliances (or it appears that way), your warranty will deny you coverage.
Do you need a home warranty in Alaska?
Some Alaskan homeowners don’t purchase a home warranty because it
doesn’t align with their needs
. Having a policy that’ll absorb some of the maintenance costs of owning a home may be helpful, but in other cases, home warranties aren’t worth the cost. If you’re considering purchasing a home warranty, make sure that you do your research and consider your situation. For example, if you don’t have money saved up that can cover maintenance costs, purchasing a home warranty can be a helpful safety net while you’re building up your savings.
However, if you’ve already saved up a decent amount and don’t anticipate high maintenance costs in the near future (maybe your home is brand new), you might want to save your money.
How to choose a Florida home warranty
Once you’ve determined that you want to invest in a home warranty, you should do your research and begin comparing plans. You should look for at least three different options, but preferably 4-5 if you want to make sure you’re getting the best bang for your buck.
Some factors you should consider include coverage options, payment plan options, and customer service experience. Before you finalize a purchase, make sure that you read your contract carefully to be aware of any hidden fees or conditions.
We’ve compiled a list of the five best home warranty companies in Alaska below.
Company | Monthly payment | Annual premium | Service fee | States not covered | BBB rating | Limits | What it’s best for |
|---|---|---|---|---|---|---|---|
Choice Home Warranty | $40-$48 | $517-$660 | $60-$85 | Washington | B- | $500-$3,000 | Best overall, high coverage caps, sign-on incentives, good customer service, basic plan covers both systems and appliances |
America’s 1st Choice Home Club | $37-$56 | $389-$615 | $75-$125 | California, Hawaii | B | $1,000-$6,000 | Most customizable and lifetime workmanship guarantee |
Select Home Warranty | $36-38 | $630-$765 | $60-$75 | Nevada, New Mexico, Washington, Wyoming | B | $500-$2,000 | Most affordable, good customer service, discounts and response times |
Liberty Home Guard | $40-$60 | $700-$960 | $65-$125 | Washington, Wyoming | A | $500-$2,000 | Best reviewed and customer service, 60-day workmanship guarantee |
First Premier Home Warranty | $43-$50 | $419-$499 | $75 | California, Nevada, Minnesota, Iowa, Arkansas, Maine, New Hampshire, Vermont, Massachusetts | A- | $1,000-$2,000 | Best coverage |
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The pros and cons of home warranties
When you’re
buying a home in Alaska
, your real estate agent may try to convince you that you need to purchase a home warranty. Or you might have heard conflicting options that tell you that home warranties are a rip-off. If you’re debating whether to buy a home warranty, you need to keep in mind your unique situation. Depending on your situation, savings, and preferences, a home warranty may be the right move for you.
To help you make this decision, let’s take a look at the pros and cons of home warranties in general.
Pro: Saves you time by hiring the best contractor for the job
Especially if you’ve recently moved into town, you might not know who to contact to fix your broken fridge or how to identify the best contractor for the job. Your home warranty provider operates from a list of trusted contractors in your area so you don’t have to worry about finding one yourself.
Pro: Access to discounted rates
Having a home warranty gives you access to some serious discounts that can be life-saving if you have a major repair job you need to get done.
On average, replacing an HVAC system in your home can cost anywhere from $5,000 to $10,000 without a home warranty in place. Even small repairs to appliances might cost you hundreds of dollars at a time. While you’ll still need to cover a service fee, having a home warranty significantly reduces your overall costs.
Con: No direct communication with your contractor
If you ever need something fixed, your home warranty company will act as a mediator between you and the contractor. As you might not get to speak to your contractor directly, you may have to deal with miscommunications or delays.
You also won’t be able to work with your contractor to decide what replacements they end up using. If you’re looking to have complete say in how your repairs get done, it might be better not to purchase a home warranty.
Con: Potential low coverage limits
Repairs and replacements of home systems and appliances can get expensive. Your home warranty plan may not be able to save you as much as you need due to coverage limits. Most home warranty companies have limits from $500-$5,000, and your total repair costs might exceed those numbers.
Con: Your claim may be denied
Home warranty companies may deny claims due to negligence even if you have done everything you can to keep your home in shape. Many home warranty contracts allow companies to deny your coverage if the previous owner of your home didn’t maintain the appliance properly.
Because of the difficulty involved with securing reimbursement for system repairs, a home warranty may not be the best way to protect you financially.
How to find affordable homeowners insurance in Alaska
While home warranties might not be the right option for everyone, getting the right homeowner’s insurance is crucial for all homeowners in the Last Frontier.
Not sure where to start or how to find the best rates?
Jerry
is the easiest and most effective way to find a car
or home insurance
policy that is customized for you. We’ll do all the hard work for you so you can get back to enjoying the great Alaskan outdoors in minutes. After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. They can even help cancel your old policy! So why do all that extra work when Jerry can do it better?
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How much does a home warranty cost in Alaska?
Most homeowners in Alaska pay between $300-$600 per year for their home warranty plan.
How long is a new home warranty in Alaska?
The majority of home warranty plans are bought for a set period of one year. Talk with your home warranty provider for more details if you’d like to purchase a longer-term.
What is the best home warranty company out there?
While the best home warranty company will vary depending on your needs, Choice Home Warranty is often cited as the best home warranty company due to its long history and high coverage limits.
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