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Home Warranty Plan- A Clear Guide for You

December 30, 2022

A lot of homeowners might think that because their new houses are loaded with brand-new appliances and systems, they won’t have to deal with malfunctions or appliances breakdown. Usually, most people often ignore the possibility of dealing with the repair of brand-new items.

Unfortunately, just because something is newly manufactured doesn’t mean that it’s not a lemon. As a homeowner, you should know that everything is subject to failure and that’s why you should always be prepared for any unexpected home appliance or system breakdowns. Whether it’s a brand new house or you have been living here for some time, you can meet unexpected systems or appliances malfunction anytime.

As a homeowner, you can protect your savings against the appliances and systems breaking down in multiple ways- you have the manufacturer’s warranty valid for one year, and after that, you can purchase a home warranty plan and cover all the critical home appliances and systems under it.

What is a home warranty plan and what does it cover?

A home warranty plan is an annual or monthly contract that is designed to protect your home appliances and systems from breakdowns due to regular wear and tear. It’s important to know that it’s not homeowner insurance.  Home insurance covers the structural damages to your property against perils like theft, fire, hailstorms, and other natural disasters but it doesn’t cover your home appliances and systems like a home warranty plan. Also, having home insurance is a must when you have a mortgage but on the other hand, a home warranty plan is an optional investment.

Home warranties can cover a variety of systems and appliances, including, but not limited to:

  • Air Conditioning & Heating (including ductwork)
  • Electrical
  • Plumbing
  • Water Heater
  • Garbage Disposal
  • Washer and Dryer
  • Dishwasher
  • Garage Door Opener
  • Refrigerator

A home warranty plan’s coverage varies from state to state and that’s why you should know what it covers and doesn’t. To get a complete idea about ServicePlus Home Warranty coverage, you can always ask for the dummy contract here.

Should I purchase a home warranty plan when I have a new home?

Usually, new homes come with brand-new home appliances and systems that are already covered by their manufacturer’s warranties. In that case, you may not need to purchase a home warranty plan but the manufacturer’s warranty remains valid till one year after the purchase date so you can purchase a home warranty plan once the manufacturer’s warranty expires. A manufacturer’s warranty offers service, repair, and sometimes replacements of a specific item that it is attached to, but a home warranty plan covers a range of home appliances and systems.

You can easily avoid item-specific protection costs by having a home warranty plan.

What type of home warranty plan should I choose?

Well, it depends on your requirements. Usually, most home warranty companies offer three types of plans- an appliances-centric plan, a system-centric plan, and a comprehensive but a little costly plan that covers both appliances and systems. You can also have additional coverage for your garage door, pools, spas,  automatic garage door, and septic tank by paying an extra amount and those are called add-on coverages.

If you want to know more about home warranty plans, click here.