Home warranty is a one-year contractual arrangement that covers repairs and replacements of most key household appliances and maintenance issues deterioration, normal wear and tear, and other age-related issues.
The question then becomes, what is the difference between a house warranty and a homeowner’s insurance?
Although it’s easy to mix up a house warranty and property insurance, the distinction is plain. A house warranty protects you from the day-to-day problems that can occur in your home by covering wear and tear failures of covered home appliances and systems. Whereas, home insurance safeguards your home and its belongings in the event of major damages or losses, such as fire, theft, or storms.
Both are necessary for comprehensive protection, as they protect you from both routine and catastrophic failures.
Coverage of a Home Warranty
When you purchase a house warranty plan, it will usually cover the majority of essential aspects of significant home systems, such as your HVAC, heating systems, plumbing, electrical, washers, dryers, refrigerators, and stoves. Other add-on coverages for spa, second refrigerator, swimming pool, pumps, and other items are also available with some plans.
How it Works
When any of your gadgets or appliances that are covered get damaged or broken down, you call the warranty company and they send you a service provider in your area.
When the qualified service expert arrives, they analyze the condition and your insurance coverage before advising you on the best way of fixing your appliance. Then you only have to pay them the service call price (which can range from $50 to $125, while your provider covers the rest of the cost.
Home warranties can cost roughly $75 per month for a plan that covers most main gadgets and home systems, contingent on your issuer and area. Alternative covering for complex systems, such as pools and spas, septic pumps, water well pumps, guest units, and even home electronics, can be added on.
A home warranty plan typically costs between $350 and $500 per year, depending on the amount of coverage you select.
When to Purchase a Warranty Plan
A plan can be acquired at any point during your ownership of your house. Moving into a new apartment in a new neighborhood can be daunting enough, so having the relief of household appliances covered in case of damages or wear and tear could potentially take a lot of stress off you.