Your inbox routinely fills up with invitations to buy home warranties. Maybe you’ve already been thinking about it for a while. Then, a friend tells you how their home warranty coverage helped out when the dryer quit working. Now, you’re thinking seriously about investing in this product.

Just as an extended car warranty is similar to a service contract, a home warranty plan can be a lot like a service plan for selected appliances or critical features of your residence. This comes into play when you face costly replacement or repair costs. If you’re a homeowner who doesn’t have a significant financial cushion for the repairs or replacements of things that break, the warranty could be an excellent option for you.

Home warranty companies are a lot like health insurance companies. They offer a broad range of plan options that you can choose from. The more you’re willing to pay as a monthly premium, the more coverage you receive. Most importantly, each company offers different limitations. They may range from specific appliance brands to their ages.

Moreover, home warranty companies won’t cover any appliances or home features that you didn’t properly maintain. Also, they don’t pay for damage due to a fire or flood. Your homeowners’ insurance policy picks up the tab for the fire damage. A separate flood insurance policy would come into play for the water damage.

Typical home warranty coverage items include garbage disposals, kitchen appliances, the plumbing, electrical wiring, your HVAC system, the master bathroom’s Jacuzzi tub, and ceiling fans. Depending on the company you work with, some of these items come as add-ons that you pay extra for.

Keep in mind that most companies have a maximum amount per claim that they will pay out. This pertains to repairs as well as replacements. Besides that, if it becomes necessary to replace an older appliance, the company will usually offer you the depreciated amount for the item – not pay for a top-of-the-line replacement that’s brand new.

Many home warranty programs will sweeten the deal to win new customers. For example, some offer sizable up-front savings and a free month if you sign up for a year and pre-pay the premium. Others give you a quarter off the annual payment if you agree to a direct withdrawal from your checking or savings account.

Other discounts focus on reducing the co-payment you typically have to contribute to the repair. You can also find discounts that include repairs to the structure itself, which generally are not part of the home warranty setup. This might require you to enter into an independent contract with a pre-screened contractor. Because there are so many discounts, it’s difficult to compare the large numbers of home warranties.

It’s challenging to compare plan costs and coverage options. Because each company sets up service levels differently, there’s no uniform point of reference. Employee And Member Discounts has done some of the legwork for you. We vetted several companies, ferreted out discounts, and found a way to explain any home warranty plan with highlights to make shopping quick, easy, and convenient.