Before You Sign Up: How to Analyze FAHW’s Warranty
FAHW is one of the leading home warranty providers in the US. Its services are available in the majority of states and it has multiple positive customer reviews, even on reputed platforms like the Better Business Bureau. The company offers comprehensive coverage and offers great value for money.
A Bit of History: FAHW Home Warranties from 1984 to 2019
FAHW is one of the industry veterans, which first appeared on the market in 1984. Since that time the company has grown tremendously offering its service in all but 16 states. Today it is one of the most reliable in the business with comprehensive coverage and rather low premiums, considering the industry standard.
This company services 523,600 homeowners in different parts of America, and that’s despite the fact that it only offers two plans, Basic and Premium. The company obviously understands the needs of the average homeowner as its plans fit the majority of homes offering comprehensive coverage for the essential systems and appliances within.
The cheapest Basic plan covers: fridge, washer, dryer, garbage disposal, microwave, oven range, cooktop, and trash compactor. Premium Plan extends the coverage to home systems (electrical, plumbing, heating, etc.) and appliances like a vacuum, water heater, and even your garage door. There are also a variety of items you can include as Optional, such as pools, spas, and fans.
According to a recent FAHW analysis, the company is most praised for the quality and speed of contractors’ work. It has similar coverage to the industry leader (American Home Shield) but lower premiums, which explains why this provider is one of the people’s favorites today. It’s also on the Fortune 100 Best Companies to Work For 2019 list.
Reviews indicate that the company ensures emergency repairs are done as soon as possible. However, in non-emergency cases, the repair timeframe is about two days. But you get a chance to get a free second opinion, which only a quarter of the nearly 200 companies in the industry offer.
Most importantly, FAHW has a very straightforward fine print. This means that the risk of being cheated, which is high in this industry, is minimal with this provider. Although there are some complaints about the business, this company isn’t associated with any major incidents like the infamous Wells Fargo scandal.
Pros and Cons of Using Home Warranty Plans
Using FAHW’s home warranty policy can save you a lot of money in cases when one of your expensive home systems or appliances break down unexpectedly. In this situation, you won’t need to delve into your emergency fund (if you even have it) or try to settle for a life without the essential item until you manage to save up for a replacement. The plan will cover a significant part or all of the repair cost.
In the case of FAHW, the limits on repairs range from $500 to $3,500. This means that you might save up to $3,500 and even get the item replaced in some cases. The exact terms for every covered item are outlined in the contract, so take your time studying them.
This kind of protection is most beneficial for:
- Homeowners, who just made an upgrade or installed new systems and appliances. This kind of extra protection will extend beyond the manufacturer’s warranty.
- Home sellers, who want to sell the house faster and for a higher price by offering this kind of additional guarantee to the buyer.
- Landlords, who benefit greatly from not only having extra protection for their property but also from the home warranty company being the one point-of-contact for all repairs.
However, you also shouldn’t forget that a home warranty might be a disappointment to the homeowner. This usually happens in the cases where you don’t use the coverage or only use it for minor repairs. In the latter case you will still have to pay a $75 service fee, which makes even a minor repair not so “minor”.
Another important issue to consider is the possibility of home warranty scams. It’s when the company doesn’t honor its obligations and refuses to pay for the coverage you are due. Unfortunately, such things happen rather often, especially with the new companies that seem to exist for the express purpose of collecting a small fortune in premiums and disappearing with no forwarding address.
The industry also has a major issue with claim denials. These cases are rarely black-and-white and they usually boil down to squabbling over loopholes in the contract’s Terms and Conditions. That’s why it’s essential to study that part of the contract with extreme care and take your time to read through all the fine print. If you don’t understand something, get clarifications before signing up. This might be the thing that makes a difference between you being satisfied and disappointed with your home warranty plan.
What Is FAHW’s Standing on the Market Today?
Many people seek out the biggest companies on the market when they want to find the best ones. After all, it should be natural that the most successful businesses can be trusted. It might be trickier with the home warranties market because this industry is rather new and unbalanced. According to Statista, the top six companies in the industry claim nearly 80% of the market.
And of those six, FAHW is the second biggest. Therefore, even when assessed from this perspective, the company shows itself to be reliable.
Of course, it’s not perfect, and no provider in this industry is. However, with the Better Business Bureau rating of “B+” and hundreds of thousands of satisfied clients all over America, FAHW stands strong.
The company is rather transparent and you can gather a lot of information about it. You definitely should do this in order to make sure that you can trust this provider. But don’t forget that you should obtain information from a variety of sources, because each of them is sure to be biased in some way.
Analyze the information you collect with a cool head and think about your needs. Will this particular plan offer the right kind of protection for you? Are you satisfied with the terms? Are you satisfied with the quality of service you received when you contacted the company for information?
Answer all these questions before making the final decision.