What Does a Home Warranty Cover?

What is a Home Warranty?

A home warranty is a service contract that helps homeowners cover the cost of replacement or repairs to home systems and major appliances. These policies offer a smart way to protect yourself from the unexpected expenses that come with homeownership.

Benefits of a Warranty

There are many reasons why you should consider getting a policy to cover incidentals in your house.

1. Save Money

Homeowners who have their air conditioning unit fail may have to pay thousands of dollars out of pocket to get it repaired. By having a home warranty in place that covers the air conditioning system and HVAC unit, the cost of these repairs will fall on the home warranty company.

2. Choose Your Own Coverage

They can choose a policy that best fits their needs and pay a small monthly fee to their home warranty company. In return, when a problem arises that is under warranty, this cost is covered by the home warranty company.

3. Reputable Repair Services

There is no need to find your own repair companies either, as you’ll have all the resources needed available to you through your home warranty company. Home warranty companies have standing business relationships with third-party providers in all different areas of expertise including:

  • Plumbers
  • Electricians
  • Pool/spa professionals
  • Appliance repair

4. Service Calls Schedule For You

Your home warranty company will arrange for an appropriate service technician to come to your home. They will diagnose the problem and the home warranty company will cover the cost for repairs or replacement. As long as it’s covered under the plan, you’ll only need to pay your deductible.

Repairs covered under the plan are based on the coverage you choose and will be outlined in the contractual agreement with your home warranty company.

What Does a Home Warranty Cover?

It is important to note that not all home warranties are the same. Home warranty companies offer different levels of coverage based on the homeowner’s needs. For example, you would not need a warranty that covers a pool and spa system if your home does not have one.

With that in mind, it is important to evaluate the needs of your home and the life expectancy of the systems and appliances within it. This can help to give you a good idea of what you are looking for in terms of a home warranty plan.

Each home warranty plan will come with a detailed service contract agreement. The service contract will have a very specific list of what it does and does not cover, plus any deductibles and cap limits on coverage.

Repairs That Might Be Covered

A home warranty can cover many repairs and maintenance concerns you have with your home. It can cover major systems like:

  • Air conditioning and heating
  • HVAC
  • Electrical
  • Pool
  • Septic

It can also cover the repairs or replacement of appliances such as the:

  • Refrigerator
  • Dishwasher
  • Oven
  • Washer
  • Dryer

There are many types of home warranty coverage plans. You decide what type of coverage fits your needs and budget the best.

How do You Get a Policy?

Homeowners can get a home warranty policy at any time. Most times there is no need for a home inspection or maintenance records. Securing your home warranty can be done easily from the comfort of your home by computer or phone. Many home warranty companies offer online quotes and multiple coverage option plans that you can compare and contrast online.

How Long is The Warranty Good For?

Most home warranties are contracted for one to two years. At the end of your contractual agreement, you can decide to cancel your service, adjust your coverage options or sign up for another year to continue your coverage.

Who Should Get a Home Warranty?

All homeowners are encouraged to have a home warranty or an emergency fund of at least 1% of the price of your home for the unexpected repairs that often arise. Depending on your current situation a home warranty may be the best option to protect yourself from spending thousands of dollars on an essential system repair to your home.

In addition, if you are buying or selling a home, a home warranty offers an excellent incentive to both the buyer and seller. A buyer who is purchasing a home with an included 1 year home warranty may feel protected against any unseen or undetected issues. On the other hand, the seller who has a home warranty in place is relieved of any buyer issues or complaints after the sale of the home has been completed.

For more great home tips, check out the other blogs on Check This House!