How to Choose a North Carolina Home Warranty

A North Carolina home warranty can either provide valuable coverage in addition to your homeowners insurance or become a waste of money.
Written by Claire Beaney
Reviewed by Melanie Reiff
If you want to purchase a home warranty for your North Carolina home, be sure to do the right research—while they can help with sudden expenses, companies can also make it hard to find compensation and get timely repairs.
There are always going to be expenses related to buying and owning a home. And with some of the most
hurricane
-prone counties and a decent risk of
flooding
in North Carolina, ownership costs can shoot up even more.
Jerry
, the
home
and car insurance
super app
has put together this guide to home warranties, one of the most prevalent ways to safeguard your North Carolina property. Continue reading to learn more about home warranties, if they're suitable for you, and which home warranty companies are best for
North Carolina
homeowners.
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What is a home warranty?

A home warranty is a service contract that encompasses the cost of repairing household appliances or equipment for a specified period of time. It often covers everything from water heaters, refrigerators, and ovens to plumbing, electrical, and HVAC systems.
The homeowner will inform the home warranty company if an appliance or system malfunctions. The warranty company requests repair or replacement services from one of its affiliated providers so that the homeowner can have these concerns resolved at a lower cost.

Home warranty vs. home insurance

While they may sound similar, there are several significant
distinctions
between a warranty and home insurance!
Homeowners insurance
protects the whole structure and contents of your home, not just the appliances and systems within it—but only against
specified perils
. While your home insurance may help you replace an oven if it is destroyed due to a house fire or theft, it will not help you if the device just breaks down after years of usage.
A home warranty, though, is intended to repair and replace crucial elements of your house that can eventually break. The main caveat is house warranties will not cover systems or equipment that have been deliberately damaged or worn down by the owner, which can create a sort of gray area for many people that sign these contracts.

Do you need a home warranty in North Carolina?

Home warranties aren’t mandatory in North Carolina, and it
may not be the best choice
for certain homeowners. While having a financial safety net to cover some of your home maintenance costs sounds great, home warranties are not always worth the money.
If you're interested in acquiring a home warranty, do your homework beforehand. If you recently purchased a house and do not have an emergency fund to cover unanticipated maintenance expenses, a warranty may be a good option while you save. If you can pay the warranty ahead or in monthly installments, it could be a good idea to save the premium as a type of backup plan.

How to choose a North Carolina home warranty

If you decide a home warranty is the best option for you, compare 3+ companies’ plans. You'll ideally want the most coverage, cheapest payments (including service charges!), and good customer service—just keep in mind you may not get all three from the same provider.
The table below will compare five of the top home warranty providers in North Carolina. Before signing a home warranty contract, read it thoroughly to verify you're getting your ideal without any unexpected terms and restrictions.
Company
Monthly payment
Annual premium
Service fee
States not covered
BBB rating
Limits
What it’s best for
American Home Shield
$40-$58
$300-891
$75-$125
Alaska
B
$1,000-$6,000
Longest track record, broadest coverage, and lowest probability of service denial
Choice Home Warranty
$36-$44
$517-$660
$60-$85
Washington
B
$500-$3,000
90-day repair guarantee, solid basic plan that covers both appliances and systems
Liberty Home Guard
$40-$60
$700-$960
$65-$125
Washington, Wyoming
A
$500-$2,000
Fast and responsive customer service, lots of add-on coverage options
Select Home Warranty
$36-38
$630-$765
$60-$75
Nevada, New Mexico, Washington, Wyoming
B
$500-$2,000
Covers a wide range of properties, offers lots of discounts
Cinch
$35-$62
$420-$816
$75-$150
Alaska, Hawaii
B
$1,000-$2,000
180-day workmanship guarantee and lots of pricing customization
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The pros and cons of home warranties

If you're
buying a house in North Carolina
, you may be advised by an agent to purchase a home warranty—some people also believe that signing that contract is never a smart idea.
Neither sentiment is completely right. Home warranties, as with most things, have pros and cons depending on your income, preferences, and personal circumstances. Let's look at the arguments for and against home warranties:

Pro: A home warranty can make it easier to hire contractors

Waking up to a broken 15-year-old oven is aggravating enough; comparing contractors online is the last thing you'll want to do. A home warranty may alleviate the stress of a crisis by linking you with the best professionals without the need for comparison shopping.

Pro: No need for an emergency fund

One of the most valid arguments to buy a home warranty is the financial stability it gives in the event of costly repairs. The typical cost of replacing a house HVAC system is $5,000-$10,000, and just fixing a fridge might cost $200-$500—which can be a big pain if you don't have the cash on hand. 
Home warranties significantly reduces these expenditures (though there will always be a service charge involved).

Con: You won’t be working with contractors directly

On the other hand, your home warranty provider will function as a liaison between you and your contractor. That's a recipe for confusion, delays, and extra costs—and you might not have any involvement in the replacements chosen by the contractor.
If you prefer to interact directly with the people who are repairing your property, you should avoid buying a warranty.

Con: Low coverage limits and high service fees

A home warranty might not provide as much protection as you believe. With typical coverage limits between $500 to $5,000, you might be unable to acquire the necessary compensation in the event of more costly repairs.

Con: Warranty companies might deny coverage

The downside that makes house warranties contentious is providers can frequently deny claims based on negligence, even if you've kept everything in good working order. Many contracts actually allow the provider to refuse coverage if the prior owner did not keep the appliance or system in good working order.
In many circumstances, no matter how nice your warranty's terms look, actually claiming reimbursement might be tricky.
MORE: Homeowners insurance in North Carolina

How to find affordable homeowners insurance in North Carolina

Every homeowner will have to decide whether or not a house warranty is right for them. However, having
home insurance
is always a must—and thanks to
Jerry
, finding the best insurance to protect your home is easier than ever!
A
licensed broker
that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and helps to cancel your old policy. Even better—Jerry will help you bundle your home and
auto
policies for maximum savings.
“I was paying $350 a month for my new car. With
Jerry
, I set up a new policy in under 30 minutes that will save me over $1000 a year!” —Mariah K.
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FAQs

The average home warranty in North Carolina costs between $350 and $600 per year, depending on the contract and coverage options you choose.
The majority of home warranties in North Carolina are for one year, though longer warranties are typically available.
The best home warranty provider varies depending on the homeowner, but American Home Shield is widely recognized as one of the best companies overall due to its long service record and high coverage limits.
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