3 Home Warranty Choices That Will Save You Money on Home Insurance

3 Home Warranty Choices That Will Save You Money on Home Insurance

Do you have homeowner’s insurance? If so, it’s possible that you’re paying more than you need to each month—especially if you have a home warranty already in place. Most policies have plenty of room to add on a home warranty.

And if you do so, the combined rates could save you hundreds of dollars per year—possibly even thousands over the lifetime of your policy! That’s why it’s important to learn about the three main home warranty choices out there and how they can affect your homeowner’s insurance rates. Let’s dive in!

1) How to save money with a full home warranty

Full home warranties offer a variety of benefits, but they can be expensive. Just how much will you save by opting for a full home warranty?

Well, depending on your coverage and location, you may wind up spending less than $200 per year for a great way to hedge against costly repairs. Here’s how to save money with a full home warranty. 

Most homeowners insurance policies cover interior and exterior property damage as well as certain personal belongings such as furniture or appliances that break due to an accident or covered peril like water damage.

However, many personal belongings are not insured through homeowners insurance policies—but they are covered under most full home warranties.

2) Home warranty plans explained

There are several options for homeowners when it comes to purchasing a home warranty. Each plan offers different coverage and price points, making it important to compare plans before you decide.

When considering a home warranty, there are three main factors to keep in mind: type of protection, cost and customer service. A good place to start is with your home insurance policy.

If you already have a homeowner’s insurance policy in place, most likely you will be offered an add-on or discount for additional coverage.

3) Comprehensive versus limited protection

Comprehensive home warranties cover a wide range of repairs, including those that are not caused by damage. But because you’re protecting against so many potential issues, you’ll be paying more to maintain your coverage than you would with a limited warranty.

If you prefer to pay less for fewer repairs, and don’t mind paying out of pocket for minor fixes like burnt-out light bulbs or clogged drains, go with a limited protection plan. Just make sure it covers everything that is important to you—and only you—like plumbing or electrical work.

And keep in mind: While comprehensive plans tend to cost more up front, they may save money in the long run because they offer coverage beyond what most limited plans will provide.

So if your house has an unusual number of systems (like central air conditioning), it might be worth spending extra now so that you can avoid big problems down the road.


The choice you make between types of home warranties is often a matter of personal preference. While we’re not trying to convince you that one type of warranty is better than another.

We do want to lay out your options so that you can make an informed decision when choosing a policy. You’ll also likely want to consult with an insurance agent or your broker before signing up for a plan—these professionals know exactly what insurance and warranty plans are best for your individual needs.


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