How to Choose a Delaware Home Warranty
A Delaware home warranty can either offer important coverage on top of your homeowners insurance or be a costly mistake.
Written by Claire Beaney
Reviewed by Melanie Reiff
If you're a homeowner in Delaware looking to buy a home warranty, do your homework first. While they might help with unexpected costs, companies may also make collecting compensation and getting quick repairs difficult.
Any time you buy and maintain a home, you're inevitably going to incur costs. And with older homes and a higher risk of flooding in the coastal communities, ownership costs in
Delaware
can spike.Let Jerry find you the best homeowners insurance policy for your needs
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What is a home warranty?
Home warranties are service contracts that cover the cost of repairing household appliances or systems for a set period of time. It commonly includes water heaters, fridges, and ovens, as well as HVAC, plumbing, and electrical systems.
If a device or system fails, the homeowner lets the home warranty provider know. The warranty provider requests repair or replacement services from associated suppliers to solve the homeowner's issues at a lesser cost.
Home warranty vs. home insurance
The terms may seem interchangeable on paper; there are many distinct differences between a home warranty and home insurance!
Homeowners insurance
covers the contents and structure of your house, not just the devices and systems—but only against certain perils. Home insurance may cover the cost of replacing a TV if it's damaged in a fire or stolen, it will not cover any expenses if the appliance just breaks down after continuous use.On the other hand, a home warranty will replace or repair critical components of your home that may fail one day. A major drawback is that home warranties won't provide protection for systems or equipment that the owner has purposefully broken or worn down, leading to a murky area for many people who agree to these contracts.
Do you need a home warranty in Delaware?
Home warranties are not required in Delaware, and they
may not be the best option for every homeowner
. A financial safety net to partially cover home repair bills seems appealing, but home warranties aren’t always a worthwhile investment.Do some research if you decide to get a home warranty. A warranty might be a decent alternative if you bought a house recently and now don't have emergency savings. If you can pay the warranty beforehand or through monthly installments, keep the premium as a backup instead of buying the warranty.
How to select a Delaware home warranty
If you think a home warranty is the right choice for you, compare the policies of three or more companies. You'll preferably want:
- The best coverage
- The lowest payments (including the service fees!)
- Premium customer service
Bear in mind that you might not receive all three from one company.
This table compares five of Delaware's leading home warranty companies. Before signing any contracts, study it carefully to ensure you receive the best deal possible with no surprise conditions or limits.
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 | Reservice for failed repairs, good basic plans for both appliances/systems |
American Home Shield | $40-$58 | $300-891 | $75-$125 | Alaska | B | $1,000-$6,000 | 24/7 service calls, low chance of service denial |
Select Home Warranty | $36-38 | $630-$765 | $60-$75 | Nevada, New Mexico, Washington, Wyoming | B | $500-$2,000 | Good selection of plans, high contractor professionalism |
Liberty Home Guard | $40-$60 | $700-$960 | $65-$125 | Washington, Wyoming | A+ | $500-$2,000 | Rresponsive customer service, many add-on coverage options |
Cinch | $35-$62 | $420-$816 | $75-$150 | Alaska, Hawaii | B | $1,000-$2,000 | 180-day workmanship guarantee, low cancellation fee |
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The pros and cons of home warranties
If you're
buying a house in Delaware
, an agent may suggest you get a home warranty; however, some believe agreeing to such a contract is never wise.Neither sentiment is entirely correct. Home warranties, like most things, have pros and cons according to your budget, preferences, and particular circumstances. Consider the following reasons for and against house warranties:
Pro: A home warranty makes it easier to hire contractors
Coming home to a defective 10-year-old stove is enough to bring you down; researching contractors is the last thing you'll probably want to do. A home warranty can help relieve the stress of this kind of disaster by connecting you with leading specialists without the obligation to comparison shop.
Pro: No need for an emergency fund
One convincing factor in support of home warranties is the financial security it provides in the case of pricey repairs. For example, replacing a house HVAC system can cost around $5,000-$10,000, while merely servicing a fridge can cost $200-$500—which may be a significant inconvenience if the money isn't on-hand.
Home warranties help minimize these costs (not including the service charge usually involved).
Con: You won’t work with contractors directly
Your home warranty provider will operate as a mediator between you and the contractor. Unfortunately, that can lead to miscommunications, delays, and extra fees—and you may have no say in the replacements picked by the contractor.
Avoid purchasing a warranty if you wish to interact one-on-one with the folks fixing your home up.
Con: Low coverage limits and high service fees
A home warranty may not offer as much coverage as you think. With standard coverage limitations ranging from $500 to $5,000, you may find yourself unable to get the necessary reimbursement if you face repairs that cost more than the coverage range.
Con: Warranty companies can deny coverage
A disadvantage that makes home warranties controversial is that providers often refuse claims based on negligence, even if you kept everything in good working order. Numerous contracts let the provider decline coverage if the previous owner didn't take care of the appliance or system properly.
In many cases, no matter how sweet your warranty's conditions appear, actually receiving compensation may be tricky.
How to find affordable homeowners insurance in Delaware
Every homeowner must determine whether buying a home warranty is best for them. On the other hand,
Homeowners insurance
is always a necessity—and thanks to the Jerry
app, getting the best insurance to safeguard your home is easier than ever!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 even help cancel your old policy.
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How much does a home warranty cost in Delaware?
The average Delaware home warranty costs between $400 and $800 per year, depending on the contract and coverage choices you select.
How long is a new home warranty in Delaware?
Most home warranties in Delaware are one year in length, but lengthier contracts are usually available.
What is the best home warranty company out there?
The best home warranty provider varies based on the homeowner and their particular property. Still, American Home Shield is commonly regarded as one of the best overall due to its long service record and high coverage limits.
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