How to Choose an Arizona Home Warranty
A home warranty is not required for Arizona homeowners, and while it could provide many benefits, it also may be a waste of money.
Written by Katherine Duffy
Reviewed by Melanie Reiff
Having home warranty coverage in Arizona isn’t necessary, unlike home insurance. While there are considerable benefits to having home warranty coverage, especially in the desert, buyers should beware of expensive plans that charge more than they’re worth.
Homeownership is often more expensive than we expect. This is especially true for homeowners in Arizona, where HVAC systems work overtime to cool homes from the scorching desert heat, leaving residents with larger than average utility bills and expensive repairs when they urgently need their AC fixed.
On top of regular homeownership costs, these extra expenses can cause the price of owning a home in Arizona to soar. That’s why
car
and home insurance
super app Jerry
has created this guide to one of the most common and frequently debated forms of financial protection for your Arizona home. Want to learn about how to choose the best home warranty in
Arizona
? Read more to understand what a home warranty is, how it’s different from home insurance, and whether you need this type of coverage. RECOMMENDED
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What is a home warranty?
A home warranty is a contract between you, the homeowner, and a home warranty company. The contract provides you with discounted repair and replacement service for your home’s systems, such as the furnace, HVAC, plumbing, and electrical systems.
Certain home warranty plans can also cover major appliances, such as washers and dryers, refrigerators, and even swimming pools. You’ll typically pay an annual fee to keep this contract between you and the home warranty company intact.
Home warranty vs home insurance
We know what you’re thinking—this sounds an awful lot like home insurance, doesn’t it?
While they sound similar, the two are actually quite different. Your home insurance coverage includes your home’s structure and contents instead of just its major appliances and systems. Home insurance only provides limited coverage for appliances and systems, and they need to be damaged under certain perils for your plan to cover the costs.
Conversely, home warranty contracts are meant to cover regular wear and tear on your home’s most important systems and appliances. For example, if your refrigerator is old and stops working, your home warranty plan will cover part of the replacement cost, whereas your home insurance policy would require your fridge to stop working due to a named peril to qualify.
The largest hangup with home warranty contracts is that these contracts won’t cover systems or appliances that fail because of owner negligence. This loophole can be a dangerously vague sticking point in many home warranty contracts.
Do you need a home warranty in Arizona?
While this service sounds essential for homeowners anywhere, it’s not a requirement in Arizona, and it’s
not always a good idea to purchase one
. Paying an annual fee for a financial safety net that protects you against expensive, unexpected repairs sounds great in theory, but many home warranty plans simply aren’t worth it.Assess your financial situation carefully before diving headfirst into a home warranty plan. If you don’t have money stashed for unexpected emergencies such as a failing HVAC system or a broken dishwasher, it could be worth paying for a home warranty plan to avoid being caught in a tight spot.
On the other hand, if you have an established emergency fund, you might be better off saving the money and putting it towards your emergency fund instead.
How to choose an Arizona home warranty
If, after assessing your financial situation, you decide purchasing a home warranty for your Arizona home is the right choice, begin your search for the right plan by weighing the pros and cons of at least three different home warranty companies.
You’ll want to find a plan that balances comprehensive system and appliance coverage with an affordable rate and a great customer service reputation.
Take a look at the table below to compare the five best home warranty companies in Arizona. Always make sure you read your home warranty contract carefully and voice any concerns you have about the agreement before signing. You’ll want to be clear on the coverage you’re receiving for the rate you’re paying.
Company | Monthly payment | Annual premium | Service fee | States not covered | BBB rating | Limits | What it’s best for |
|---|---|---|---|---|---|---|---|
Choice Home Warranty | $36-$44 | $517-$660 | $60-$85 | Washington | B | $500-$3,000 | Fast response times, basic plan covers both systems and appliances |
American Home Shield | $40-$58 | $300-$891 | $75-$125 | Alaska | B | $1,000-$6,000 | Longest reputation, highest coverage limits, lower chance of service denial |
AFC Home Club | $43-$60 | $400-$650 | $75-$125 | Hawaii | B | $500-$2,000 | Longest work guarantee in the industry |
Liberty Home Guard | $40-$60 | $700-$960 | $65-$125 | Washington, Wyoming | A+ | $500-$2,000 | Best customer service, tons of coverage add-ons |
Homeserve | $29-$58 | $350-$600 | $75-$150 | N/A | A+ | $500-$3000 | 20% your first year of coverage |
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The pros and cons of home warranties
If you’re purchasing a new home in Arizona, your real estate agent may have convinced you that you need a home warranty plan. On the other hand, you might’ve heard that you should steer clear of signing up for a home warranty plan at all costs.
While both of these sentiments are well-intentioned, neither is completely true. Home warranties come with many pros and cons depending on your financial situation, coverage preferences, and the types of systems and appliances you have in your home.
Pro: You don’t have to scramble for a contractor
Imagine your AC breaks on a particularly hot day in Arizona and you’re trying to find a contractor to fix it—only to discover that many other homes are facing the same problem and there are no available contractors for a few days.
With a home warranty, you don’t need to worry about tracking down a contractor. Your company will contact a contractor for you and have your system back in order in no time.
Pro: You don’t need to save for an emergency repair fund
The largest benefit of a home warranty plan is saving on an emergency fund in case something in your home breaks down. The average cost to replace a home HVAC system is between $5,000 and $10,000, which could leave you in considerable debt if you don’t have that money sitting in your bank account. A home warranty significantly reduces these costs.
Con: There’s now a middleman between you and contractors
You may be saving time and energy on looking for a contractor with a home warranty policy, but you also have to deal with the bureaucratic processes involved. Expect miscommunications, repair slowdowns, and hidden costs. The worst part? You may not be able to choose the replacement parts your contractor uses. This is a perfect storm for disappointment.
Con: Your coverage is low, but your fees are high
You may think your home warranty plan absolves you from paying anything more than your monthly fees and service costs, but you’d be wrong. The financial security that a home warranty provides is usually less than you’d expect.
You could have to shell out thousands of dollars for repairs when your coverage has reached its limit or when your appliance or system isn’t covered by your contract.
Con: Your claims aren’t always accepted
Because of the owner negligence loophole, home warranty companies frequently deny providing coverage for your claim, even if you’ve done everything possible to maintain your system or appliance.
This often happens because companies account for previous owner maintenance, which is obviously out of your control. This loophole could leave you high and dry when you need the coverage you pay for most.
How to find homeowners insurance in Arizona
Whether you’ve decided that a home warranty plan is the right choice for you or not, it’s mandatory to have
homeowners insurance
in Arizona. Jerry
, the top-rated
insurance comparison and shopping app can help you find coverage that’s right for you at an affordable rate. A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new homeowners insurance. Jerry will even help you cancel your old policy.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price. This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it the top insurance app in the country.
“Jerrywas wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up my homeowners insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary Y.
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How much does a home warranty cost in Arizona?
On average, a home warranty in Arizona costs between $300–$600 per year, with service fees ranging between $75–$125 per claim.
How long do home warranty contracts last?
Home warranty contracts in Arizona usually last around a year, but you can find longer contracts. You’re able to renew your contract each year.
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