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Essential Questions About Home Warranty Plans You Should Be Aware Of

October 11, 2023

 A home warranty is an annual service contract designed to safeguard your home's appliances and systems, including plumbing, electrical, and air conditioning, among others. In exchange for a monthly or yearly premium, the company responsible for the warranty will repair or replace items that break down or malfunction due to regular wear and tear. The primary goal of a home warranty plan is to protect your property for a specified period, and you can also opt to include additional items such as a pool, spa, or automatic garage door by paying an extra fee.

How Does a Home Warranty Plan Operate?
Each home warranty plan comes with its own set of limitations, and the items covered can vary from one plan to another. For instance, one company might cover your washer and dryer, while another might not. Some home warranty companies even treat secondary appliances like an additional service. It's crucial to thoroughly review the contract before purchasing a plan to understand these limitations, as they can affect the approval of your claims.

What Is the Duration of Home Warranties?
Most home warranty companies offer plans that last for one year. Fortunately, many of them allow customers to renew their plans annually, ensuring continued coverage for their properties.

Distinguishing Between a Home Warranty Plan and Home Insurance Many people confuse home insurance with a home protection plan, but these are distinct investment options. Home insurance primarily covers structural damage to the property resulting from events like fire, theft, flood, hailstorms, and natural disasters. Unlike home warranty plans, home insurance does not cover home appliances and systems. While home insurance is typically mandatory for homeowners with mortgages, a home warranty plan is an optional investment for consumers.

What Does a Home Warranty Plan Typically Cover?
Home warranty plans generally cover two main areas: home appliances and systems. The specifics of coverage depend on the agreement with the company. Most home warranty companies offer separate plans for appliances and systems, but they also often provide comprehensive plans that cover both.

How Does a Home Warranty Plan Function?
When a covered item malfunctions, you must inform your home warranty company, which will then dispatch one of its registered service technicians to your location to inspect the issue. If the item is repairable, the company will handle the repairs at no additional cost. If repair isn't feasible, they will replace the item.

Commonly Covered Home Systems Include:

  • Heating systems
  • Air conditioning systems (HVAC)
  • Electrical systems
  • Plumbing systems
  • Water heaters
  • Ducts
  • Commonly Covered Home Appliances Include:
  • Garbage disposals
  • Dishwashers
  • Ceiling fans
  • Bathroom exhaust fans
  • Clothes washers and dryers
  • Garage door openers
  • Ovens/stoves/cooktops
  • Refrigerators/freezers
  • Ice makers
  • Doorbells
  • Trash compactors
  • Instant hot water dispensers
  • Additional Coverage Options:
  • Swimming pools
  • Guesthouses
  • Spas
  • Septic tanks

If you're searching for a reputable home warranty company, consider ServicePlus Home Warranty as your top choice.