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Despite the fact that they often take years to save for, homes are far more than a financial investment, creating a safe space for homeowners and their families to relax, reconnect, and find peace in a world that is constantly on the move. But that peace may be interrupted when the space experiences a broken system, failing appliance, or other home-related issues.
For this reason, it’s no surprise that many homeowners take measures to keep their home, and the items within it, in good condition. For residents of New Jersey, a new home warranty can be a valuable tool, protecting the home’s major systems and appliances from issues due to wear and tear. Homeowners will need to be prepared to do some research to find the right plan for their home. With home warranties, policies range from basic and affordable to comprehensive and potentially expensive. To make it easier for prospective customers to find and select the best plan for their needs, this guide has everything homeowners need to know about the best home warranty companies in New Jersey.
- BEST OVERALL: AFC Home Club
- RUNNER-UP: Cinch Home Services
- BEST ADD-ON COVERAGE: Liberty Home Guard
- BEST COVERAGE LIMITS: American Home Shield
- ALSO CONSIDER: Choice Home Warranty
What to Consider When Choosing One of the Best Home Warranty Companies in New Jersey
When it comes to home warranty companies, New Jersey has no shortage of options worth considering. However, it’s important for residents of the Garden State to understand that each of these companies is unique, offering its own rates, terms, and home warranty coverage options. Because of this, homeowners will need to pay close attention to several factors to select the provider and plan that best suits their needs.
Policies and Plans
When comparing home warranty companies, the first factor homeowners will want to consider is each company’s individual policies and plans. Most providers offer multiple policy tiers with varying levels of coverage, and in addition to standard coverage inclusions, many providers also offer a list of add-on coverage options homeowners can use to expand the scope of their policy.
But which items fall under standard coverage, and which are available at an extra cost, varies significantly from one home warranty company to another. This means homeowners will need to make note of any specific items they want to have covered before entering the home warranty search and identify companies worth considering based on whether they provide the necessary coverage options.
Maximum Coverage Limit
The maximum coverage limit on a home warranty represents the total amount the home warranty company is willing to pay for repairs on covered items. This coverage limit, which may be applied per item or per term depending on the provider, directly impacts how far home warranty coverage can extend.
With high coverage limits, homeowners may be able to have expensive repairs covered without worry, but homeowners who find themselves in need of repairs that exceed their coverage limit may be on the hook to pay the difference out of pocket. To avoid these added costs, prospective policyholders will want to take the time to understand each company’s coverage limits.
Average Monthly Rate
Every month, homeowners face mortgage payments, utility bills, and other expenses that can quickly add up. Because of this, it’s understandable that cost considerations are often a top priority for homeowners. With home warranties, there are two main cost factors to consider: average rates and service fees.
Homeowners pay monthly rates in exchange for their home warranty coverage. Though the exact price they pay will depend on a number of factors, including their home’s age, size, condition, and location as well as the specific coverage options they choose, a home warranty company’s average monthly rate can provide a rough estimate of the cost of coverage with that provider. As such, prospective customers will want to consider this alongside other cost factors to pick a policy that fits within their monthly budget.
Discounts
Depending on the scope of coverage needed, a warranty for a house can get costly, but there is one way homeowners may be able to get the coverage they need for a lower-than-advertised price: by taking advantage of discount opportunities.
Many home warranty companies provide customers with ways to save on the total cost of their coverage, from attracting new customers with promotional online discounts to rewarding those who pay up front for their policy by giving them additional months of coverage free of charge. But much like many of the other factors homeowners need to weigh when choosing a home warranty policy, the specific discount opportunities available will depend on the provider, so homeowners will want to keep their eyes peeled for discount opportunities throughout their search.
Service Fee
In New Jersey, home services provided by the home warranty company will only be available after the homeowner pays an out-of-pocket cost: a service fee. This is a standard practice with home warranties, but the specific fee the homeowner is required to pay for repairs will depend on their provider. Service fees can vary somewhat among companies, so alongside average rates, this is a cost factor homeowners will want to consider.
While some companies may standardize one service fee across all policies, many home warranty providers give customers a list of service fees to choose from, allowing them to choose ahead of time the out-of-pocket cost due at the time of service. However, it’s important to note that choosing a lower service fee typically results in paying a higher monthly rate, so homeowners given their choice of service fees will want to weigh their options carefully.
Waiting Period
Home warranties typically kick off with a waiting period: a brief window of time between when the policy begins and when the homeowner can first use their coverage to repair home systems and appliances.
Though waiting periods are often short at around 30 days, this can still present a potential gap in coverage, putting homeowners at risk of having to pay for repairs out of pocket. However, some home warranty companies offer ways for customers to bypass the waiting period entirely, such as asking them to complete a home inspection with a licensed technician, so homeowners will want to pay close attention to waiting periods.
Claims Process
Although home warranty reviews can serve as windows into the general customer experience, one of the best ways to understand the potential experience with a home warranty company is by analyzing its claims process. Each provider has its own process for submitting claims, reviewing claims, and scheduling repairs, and each of these components can impact the amount of time it takes for homeowners to get the repairs they need.
To avoid any surprise delays in the claims process, homeowners may want to take the time to understand each company’s channels for submitting claims, expected claims response times, and methods for selecting repair technicians. By doing so, they can select a company with a claims process they won’t mind navigating if they need to use their coverage.
Workmanship Guarantee
When repairs are completed on covered systems and appliances, they are typically covered for a period of time under a workmanship guarantee. Workmanship guarantees protect the homeowner in the event that initial repairs fail to resolve the underlying issue, allowing them to schedule follow-up work without having to pay an additional service fee.
However, the exact length of the workmanship guarantee will depend on the provider, with guarantees varying widely from as little as 30 days to up to several years in some cases. Because shorter guarantees could potentially lead to paying additional service fees, homeowners will want to make note of the workmanship guarantees offered by each home warranty company.
Our Top Picks
To identify the best home warranty companies in New Jersey, we weighed factors ranging from costs to coverage options, considering the overall value provided by each company and how that company’s offerings might appeal to residents of the Garden State.
Best Overall
AFC Home Club
Why It Made the Cut:
With AFC Home Club, customers can lock in low monthly rates, secure a lengthy workmanship guarantee, and be given the flexible option to choose their own repair technicians.
New customers may be able to avoid delays in their home warranty coverage by going with AFC Home Club, with the company promising to waive its standard 30-day waiting period for homeowners who agree to a home inspection to assess the condition of their home systems and appliances. New customers will also receive the benefit of locked-in monthly rates for a period of 5 years, allowing them to retain their original rate even if prices increase during that time. This can ultimately save homeowners money on their policy over time, adding more value to a home warranty through AFC Home Club.
Homeowners who choose AFC Home Club will have the option to choose their own technician for repairs. This alternative may be preferable over a company-selected contractor for those who already have a trusted, local handyman in mind for the job. But whether they select a technician from AFC Home Club’s preferred network or choose to find their own contractor, homeowners will be protected by the company’s long-lasting workmanship guarantee, which runs the entire length of the policy term (either 1 year or 3 years). This means homeowners won’t need to worry about paying additional service fees should their repairs require any follow-up work.
Potential customers will want to note that AFC Home Club will require what it calls a “prior satisfactory annual maintenance record from a licensed technician” before it will approve any HVAC service requests. As such, homeowners will be required to keep up on annual HVAC maintenance to take advantage of their HVAC coverage, creating an additional out-of-pocket expense. However, because regular HVAC maintenance can prevent more costly issues from arising, this requirement may work in the homeowner’s favor in the long run.
Specs
- Maximum coverage limit: $3,000
- Average monthly rate: $56
- Service fee: $75 to $125
- Claims process: Online, phone
- Workmanship guarantee: 1 or 3 years
Pros
- Customer-selected technician option
- Extremely long 1- or 3-year workmanship guarantee
- 5-year guarantee on monthly rate
- Waiting period waived with home inspection
Cons
- Annual HVAC maintenance required
Runner-Up
Cinch Home Services
Specs
- Maximum coverage limit: $3,000
- Average monthly rate: $68
- Service fee: $100 to $150
- Claims process: Online, phone
- Workmanship guarantee: 180 days
Pros
- Coverage for unknown pre-existing conditions included
- Rust and corrosion coverage included
- Quick response within 2 hours of service request possible
Cons
- Relatively high $100 to $150 service fee
Why It Made the Cut: Cinch Home Services offers customers an impressively quick claims response time plus some unique standard coverage inclusions for pre-existing conditions and issues due to rust and corrosion damage. Depending on who purchases the home warranty, homeowners may be able to take advantage of coverage on issues due to rust and corrosion damage with Cinch Home Services. This coverage is available to customers who already own their home or are in the process of buying a new one. The company also provides coverage on certain pre-existing conditions, as long as those conditions cannot be identified by a simple visual inspection or mechanical test. Because pre-existing conditions, rust, and corrosion damage aren’t commonly covered under a home warranty, there may be additional opportunities for homeowners to put their coverage Cinch Home Services to use. When they go to use their home warranty coverage, homeowners with policies through Cinch Home Services should be prepared to pay a service fee between $100 and $150, which is somewhat high for this type of fee. However, these higher service costs could be due to Cinch Home Services’ speed of service. For requests submitted during normal operating hours, the company states that it will begin processing claims and contacting service professionals in as little as 2 hours. This is a very quick claims response time, which may allow homeowners to more easily schedule the repairs they need when they need them.
Best Add-On Coverage
Liberty Home Guard
Why It Made the Cut:
Homeowners who choose Liberty Home Guard can purchase numerous add-on coverage options, select from multiple service fees, and receive additional months of coverage for free when paying up front.
From flexible service fees to a long list of coverage options, homeowners may be able to design their ideal home warranty plan with Liberty Home Guard. The company gives its customers a plethora of coverage options to choose from, offering more than 40 different service add-ons homeowners can purchase to customize or expand the scope of their home warranty coverage.
Alongside choosing their coverage options, Liberty customers will also be able to select from multiple service fees, with options available as low as $60. These flexible options can allow homeowners to minimize out-of-pocket costs when scheduling repairs, which may be particularly appealing when the company’s coverage limit is taken into account. Liberty caps repairs on covered items at $2,000, which is somewhat low for this type of coverage. However, it’s worth noting that this coverage limit is applied per item, not in aggregate, which means customers can still request multiple repairs per term, assuming the cost of each individual repair does not exceed $2,000.
Though monthly payments are common, Liberty customers who choose to pay up front for their policy can receive an additional 2 months of coverage free of charge. In essence, this would give customers 14 months of home warranty coverage for the price of 12, saving them money in the long run.
Specs
- Maximum coverage limit: $2,000 per item
- Average monthly rate: $55
- Service fee: $60 to $125
- Claims process: Online, phone
- Workmanship guarantee: 60 days
Pros
- Wide variety of service add-ons
- Low $60 minimum service fee
- 2 months of free coverage with annual payment
Cons
- Relatively low $2,000 coverage limit per item
Best Coverage Limits
American Home Shield
Why It Made the Cut:
American Home Shield’s notable offerings include high coverage limits on HVAC repairs; standard coverage for pre-existing conditions; and coverage inclusions for rust, corrosion, and sediment damage.
American Home Shield policies include an impressively high $5,000 coverage limit on HVAC repairs. This coverage cap may allow homeowners to cover more expensive repairs, keeping this critical home system in good operating condition without having to foot part of the bill themselves (aside from the service fee).
Although the exact price of a home warranty will depend on several factors, including the coverage options selected and any applicable discounts, American Home Shield’s average monthly rate in New Jersey is somewhat high at $93, which may indicate that residents can expect to spend more on a home warranty by going with this company. They may also find themselves at risk of having to pay higher out-of-pocket costs when scheduling additional repairs due to the company’s workmanship guarantee, which only lasts for 30 days.
Even so, with high coverage limits and some unique standard coverage inclusions, there’s a reason American Home Shield makes the short list of options worth considering. For instance, in addition to covering issues due to rust, corrosion, and sediment buildup, the company also offers coverage on any pre-existing conditions that cannot be discovered during a simple visual or mechanical inspection. Because many home warranty companies exclude pre-existing conditions, regardless of the circumstances, this is a noteworthy inclusion that could increase the value of a home warranty through American Home Shield.
Specs
- Maximum coverage limit: $5,000 (on HVAC repairs)
- Average monthly rate: $93
- Service fee: $100 or $125
- Claims process: Online, phone
- Workmanship guarantee: 30 days
Pros
- Relatively high $5,000 coverage limit on HVAC repairs
- Coverage for unknown pre-existing conditions included
- Rust, corrosion, and sediment coverage included
Cons
- Relatively high $93 average monthly rate
- Relatively short 30-day workmanship guarantee
Also Consider
Choice Home Warranty
Why It Made the Cut:
With Choice Home Warranty, homeowners can find affordable monthly rates, opportunities to bypass the waiting period, and a hands-on claims experience.
Deal-seeking homeowners may be drawn to Choice Home Warranty’s low monthly rates, which average around $51 per month in the New Jersey market. Once again, the exact cost of a home warranty will depend on several factors, including the age, condition, and location of the home, but these rates could mean that New Jersey homeowners can get a good deal by choosing Choice Home Warranty.
When a homeowner submits a service request, Choice assigns multiple representatives to the claim, ensuring a more positive experience for customers by making it easier for them to get in touch with someone who is already familiar with their situation to resolve any questions or concerns. But this stellar claims support comes at a cost, with Choice Home Warranty setting a standard $85 service fee across all its policies, regardless of the specific options selected by the customer. While reviewing these options, prospective policyholders may also notice that Choice only offers two policy tiers to choose from, both of which feature a combination of home systems and appliances. Although this may seem somewhat limiting for certain homeowners, such as those who want the flexibility of choosing their service fee or those who only desire coverage on their home’s major systems, others may appreciate having fewer options to pore over when settling on a policy.
Another perk for homeowners to consider is that those with an existing policy through another provider who are looking to make a change may be able to avoid gaps in their coverage by switching to Choice Home Warranty. Under these circumstances, the company is often willing to waive its standard waiting period in an effort to attract new customers.
Specs
- Maximum coverage limit: $3,000
- Average monthly rate: $51
- Service fee: $85
- Claims process: Online, phone
- Workmanship guarantee: 60 days labor, 90 days parts
Pros
- Relatively low $51 average monthly rate
- Waiting period waived for customers with an existing home warranty
- Hands-on claims support from multiple representatives
Cons
- Limited policy options
- No service fee flexibility
Our Verdict
We gave the Best Overall award to AFC Home Club due to the company’s locked-in monthly rates, lengthy workmanship guarantee, and flexible customer-selected technician option. The Runner-Up award was given to Cinch Home Services because of its quick claims response time and standard coverage for rust, corrosion, and certain pre-existing conditions.
How We Chose the Best Home Warranty Companies in New Jersey
To determine the best home warranty companies for New Jersey, we weighed a variety of factors that residents of this state may prioritize. Each company’s policies and plans were analyzed, including standard coverage and any service add-on options homeowners can use to expand the scope of their coverage. To understand how far this coverage can extend, coverage limits were also considered.
Cost considerations were another major factor to weigh, and our research looked at each provider’s average monthly rates, service fees, and any applicable discounts that might lower the total cost of home warranty coverage. To shed light on the customer experience, we also considered each company’s claims process including average response times, workmanship guarantees, and whether homeowners have the option to choose their own technician.
Before You Choose One of the Best Home Warranty Companies in New Jersey
Before homeowners can choose from one of the best home warranty companies in New Jersey, they must first understand their specific needs and priorities, beginning with whether they need a home warranty in the first place. Much like every home is different, every homeowner is also different, and both factors will impact whether a home warranty is worth it. Homeowners who prioritize peace of mind may be drawn to home warranties, while those trying to keep costs low may be hesitant to agree to another monthly charge.
Homeowners may also want to keep in mind that home warranties only cover home systems and appliances that break down due to normal wear and tear. Items damaged by fire, storms, or other incidents will not be covered under a home warranty. Unlike a home warranty, insurance protects against damage caused by natural disasters, which means homeowners may want to factor each of these forms of coverage into their home protection plan. As such, it may be a good idea to pair a home warranty with insurance from one of the best New Jersey homeowners insurance companies.
Ultimately, home warranties can be beneficial to all homeowners—they just may need to take the time to analyze their needs and compare those requirements to each company’s coverage options. For example, although HVAC systems are often covered by home warranties, the scope of that coverage can vary by company. As such, homeowners interested in protecting their air conditioning and heating systems may want to seek out the best home warranties for HVAC coverage. This means prospective policyholders will need to identify the items they need coverage for, then decide how much they’re willing to pay for that coverage before entering the home warranty search.
Cost of Opting for One of the Best Home Warranty Companies in New Jersey
The exact cost a homeowner pays for their home warranty will depend on several factors. The home’s age, size, condition, and location, as well as the specific coverage options selected by the homeowner, will all impact the total cost of coverage. Home warranty pricing can also vary significantly among providers, but in general, a home warranty costs average around $600 annually.
To understand the cost of coverage with New Jersey home warranty companies, homeowners may want to make note of three factors: average monthly rates, service fees, and discount opportunities. While monthly rates are paid consistently, service fees are paid more sporadically and only when repairs are needed. It could be a good idea for homeowners to understand both of these costs to select a home warranty that fits their budget.
The Advantages of Opting for One of the Best Home Warranty Companies in New Jersey
For the homeowners who opt for them, home warranties can create a sense of comfort and safety, ensuring that their home’s critical systems and appliances are protected in the event that they require potentially expensive repairs or replacement. But the advantages of opting for a home warranty extend beyond a general sense of security. A New Jersey home warranty can provide homeowners with several benefits, including:
- Access to the company’s preferred network of trusted, experienced service providers or—-in some cases—the option for customers to choose their own contractor;
- Various policy options, including service add-ons that expand the scope of coverage; and
- Extensive coverage for the home’s major systems and appliances that may include pre-existing conditions, rust, sediment, and corrosion.
FAQs
Coverage, costs, and claims—with so much to consider, it’s understandable that homeowners may still harbor some lingering questions about what a home warranty is and how to choose a policy that is right for them. To eliminate uncertainty, prospective policyholders may want to review some of the most frequently asked questions regarding this type of coverage before settling on a home warranty in New Jersey.
Q. Is a home warranty required by law in New Jersey?
The state of New Jersey does not require homeowners to have a home warranty by law. Even so, homeowners may decide that a home warranty is worth it to cover repairs on major home systems and appliances that break down from wear and tear. A standard homeowners insurance policy in addition to a home warranty policy could provide customers with the optimal level of home protection.
Q. Do home warranties in New Jersey cover plumbing issues?
Many home warranties cover plumbing through plans that focus on home systems protection, though the extent of that coverage will depend on the home warranty company. As such, homeowners interested in this type of coverage may want to consider one of the best home warranties for plumbing.
Q. Will my home warranty cover electrical repairs?
A home warranty with home system protection typically covers the components of the electrical system from issues due to normal wear and tear. However, damage to electrical systems due to accidents or disasters will not be covered, but the customer’s homeowners insurance policy might cover such incidents.
Q. Do I have a deductible with my home warranty?
Unlike insurance, home warranties do not come with deductibles. However, homeowners will still be required to pay an out-of-pocket cost, called a service fee, to use their coverage.
Q. What is the average cost of a home warranty in New Jersey?
Based on the companies included on this list, the average cost of a New Jersey home warranty is $65 per month, though many factors will impact the exact cost a homeowner pays for their coverage. In addition, other home warranty companies may offer rates that vary significantly from the best home warranty providers in New Jersey. As such home warranty average costs across the entire state may be higher or lower than that figure.
Q. How long do you have to wait before you can use your home warranty coverage in New Jersey?
Once a homeowner chooses a home warranty policy, there is typically a standard 30-day waiting period, after which the homeowner can begin using their coverage.