Colorado
homeowners, especially those with older homes, may be tempted to purchase a home warranty. Unfortunately, while they are sometimes helpful, they are often not worth the hassle or money. If you're a homeowner, chances are you've invested a decent chunk of change into your home and you’ll want to protect your investment. While home insurance
is a great place to start, you’ve probably heard a thing or two about home warranties. Some people swear by them, while others claim they’re a total scam. Jerry
, the top-rated
comparison shopping app for auto
and home insurance, is here to help. We can teach you everything Colorado homeowners need to know about purchasing a home warranty. We'll dive into the differences between home insurance and home warranties, the pros and cons, and help point you in the right direction if you're interested in purchasing one. RECOMMENDEDNo spam or unwanted phone calls · No long forms
What is a home warranty?
A home warranty is a yearly service contract covering repairs and replacements for your home's appliances and systems at a heavily discounted rate. So if appliances like your refrigerator, washing machine, or air conditioning break down, a home warranty gets them fixed at a much lower price than going directly to a contractor.
Home warranty vs. home insurance
A home warranty and homeowners insurance are not the same things. While they serve a similar purpose–protecting your home–what they cover and when they cover it are entirely different.
Homeowners insurance is designed to cover your home’s physical structure and everything in it, but only against certain covered perils
like theft, fire, and windstorm damage. These perils are explicitly written out in your homeowners insurance policy
, so it’s a wise idea to take a look through and see exactly what’s included. While homeowners insurance will help cover repair costs to your plumbing system if it’s damaged in a fire, it will not cover wear-and-tear repairs or breakdowns after regular use.
On the other hand, a home warranty is specifically for items in your home that will break down or need repairs after enough use. Keep in mind, a home warranty will not cover anything that has been intentionally damaged or needs repairs due to owner negligence. Unfortunately, owner negligence is a notoriously unclear clause in many home warranty contracts.
Do you need a home warranty in Colorado?
The best argument for purchasing a home warranty in Colorado is the extra financial security and peace of mind it can give you. If you don't have much money stashed away for home repairs, a home warranty can be a great way to provide a little breathing room while you save up.
On the flip side, a home warranty contract is often not worth the money with its low coverage limits and added service fees. Some would argue that it's smarter to take the money you would put towards a home warranty and use that to start building your savings.
How to choose a Colorado home warranty
Take it from us; comparing plans is always the best way to ensure you're making the right decision for your coverage needs and budget. The trifecta of home warranties—great customer service, low payments, and broad coverage—can feel like finding a needle in a haystack, or hunting for a unicorn.
The table below compares the need-to-know information about five of the best Colorado home warranty companies. The exact prices will vary depending on your plan, but this should give you a rough idea of what you can expect from each company. Like with any contract, read the fine print before signing a home warranty—you don't want to get slammed with hidden fees and fines!
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| | | | | | | Long reputation, can choose own service fee, higher coverage limits |
| | | | | | | Good for older homes and offers a wide selection of basic plans |
| | | | | | | Highly customizable plans, can choose own technician, covers appliances and systems |
| | | | | | | Quick response times, highly customizable plans, the highest rating from BBB |
| | | | Alabama, Arizona, Arkansas, California, Florida, Hawaii, Illinois, Iowa, Kentucky, Louisiana, Massachusetts, Nevada, New Hampshire, New Mexico, New York, North Carolina, Oklahoma, Oregon, South Carolina, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming | | | Can choose your own contractor and offers affordable add-ons |
The pros and cons of home warranties
Pro: A home warranty can take the guesswork out of hiring contractors
When something breaks, the last thing you want to do is spend time online poring over contractor reviews and choosing the best one…and going through the internal back-and-forth of “is this really the best contractor?” Instead, you'll be put in touch with a designated contractor with a home warranty, bypassing the search process completely.
Pro: No need for an emergency fund
The biggest draw of a home warranty contract is that it can come in handy if you don't have a rainy day fund set aside for emergencies. Although you'll still have to pay a service fee, the cost of repairs with a home warranty becomes much more affordable.
Con: You won’t deal directly with contractors
As convenient as it can sometimes be to avoid dealing with contractors, sometimes going through a middleman can slow down the process. You may not always get to choose who your contractor is or what fees they'll tack on for their services.
Con: Low coverage limits and high service fees
If you need a more extensive (and expensive) repair, a home warranty contract is likely not worth the money. For example, replacing an HVAC system costs between $5,000 and $10,000, while most home warranty contracts have a $500 to $5,000 coverage limit.
Con: Warranty companies can deny coverage
Here's the kicker that can turn people off of home warranty contracts: your home warranty company can deny your claim due to ill-defined "negligence." So even if you've stayed on top of your home's routine repairs, the company can deny your claim even if the previous owner didn't keep up with the appliance or system.
How to find affordable homeowners insurance in Colorado
Like we said earlier, comparing home warranty contracts is the best way to find a great deal, as is comparing home insurance policies. Jerry
, the first-of-its-kind insurance super app
and licensed broker, does the hard work of comparing home insurance quotes
, so you don't have to. It's this simple: download the Jerry app or go to getjerry.com. In less than 45 seconds, Jerry collects all of your information from your existing insurer. Then, choose from competitive quotes from top insurance companies and Jerry takes care of the rest—securing your new policy and helping you cancel your old one.
“I signed up for a new policy with Jerry’s
help. I ended up saving $236 a month after my switch. Thank you, Jerry!” —Adelaide C.
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