Should you choose your own Contractor for your Home Warranty Repairs?

An increasing number of home warranty companies are now requiring the policyholders to find their own contractors to repair or replace a broken-down home system or appliance.

If you know some tradespeople personally or have used their services successfully in the past, then you might prefer these home warranty policies. You may even find that these policies cost less.

But be careful because there are several traps you could be walking into with these policies.

From personal experience, I can tell you there is nothing worse than having a personal friend do some work around your house and then finding that the quality is just not what you were seeking.

Here are some of the traps you are likely to encounter with home warranty policies that require you to find your own home warranty contractor.

You Spend More Money on Repairs and Replacements

While the ‘find your own contractor’ home warranty policies might be less expensive to purchase, you may find the repairs are more expensive.

Home warranty companies negotiate rates with all of their contractors.

This ensures that you and the home warranty companies are not overcharged, plus they can offer the contractor regular ongoing work which is advantageous for the contractor. In return, the contractor will be prepared to discount their fees for work on their home warranty clients. The home warranty company pays its contractors much less than what the contractor would normally charge a customer.

The result is lower costs for you.

But for companies that require you to find your own contractor, you will end up paying more because:

1. Their policies usually have lower monetary limits for repairs and replacements.

2. They don’t have negotiated rates for parts and labor with a network of contractors.

Home warranty companies with their own network of contractors have agreements that don’t just set fees, but also exchange discounted parts and services in return for consistent work.

Instead, you will have to pay the set prices of the contractor you find. The fees can vary between contractors and of course, cheaper does not mean better.

You Spend More Time Finding a Contractor

They say that time is money!

You have bought a Home Warranty policy to save you the hassle and cost of getting repairs completed. But if you have to find the contractor, you are still doing half the work that you really wanted the home warranty company to do for you.

You might choose the first contractor you contact, and get the job started immediately. But how much time did you spend negotiating costs and checking the quality of their work?

Alternatively, you could spend a lot of time meeting with several contractors, negotiating costs and checking the quality of their work, and eventually finding a great contractor, and who is even going to do the work for a reasonable price.

But how much time and effort has it taken you? How long has your home and your family had to go without the use of the faulty system or appliance?

If your policy doesn’t require you to find your own contractor, you save yourself all that time and stress and can be confident of a quality result. If for some reason the completed work is poor, it is your home warranty company that will remedy the situation as soon as possible at no further cost to you.

If you choose your own contractor, it may be difficult to know how specialized they might need to be for your specific repair. If their work is poor, you will need to find a second contractor and probably face the entire cost or the second contractor.


A home warranty where you find your own contractor will cost you more money, more time, and more effort.



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I work as a full time hair stylist but love writing about life. I hope to become a full time writer one day and spend all my time sharing my experience with you!

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