Why a Home Warranty?

Why a Home Warranty?

What is a home warranty?

A home warranty plan covers home appliances and systems, such as major appliances, electrical, plumbing, and HVAC systems. Unlike homeowners insurance, which safeguards your home from specific risks, a home warranty is a service agreement that addresses regular wear and tear. It's important to note that while homeowners insurance is typically mandatory for most lenders, a home warranty is optional.

 

How does a home warranty work?

When a covered system or appliance breaks, your home warranty will arrange for a pre-screened technician to assess the problem. If it's a covered issue, your home warranty can assist with the repair or replacement. Home warranties have set term limits, often monthly or annually, with the option to renew, and some automatically renew.

 

Do all home warranties have a deductible?

Home warranties often come with a deductible per claim. After the deductible, your warranty covers repair or replacement costs for covered appliances and systems. Some expenses, like permits and equipment disposal, may not be covered, so review your warranty terms for any limitations or exclusions.


What does a home warranty cover?

A comprehensive home warranty typically covers essential appliances (like dishwasher, refrigerator, oven, washer, and dryer) and systems (HVAC, electrical, plumbing) not related to the home's structure. Some providers offer warranties for specific appliances and systems as well (like well/septic, pool/spa, etc).