Home Warranty

What Is a Home Warranty?

A home warranty is a service contract that covers repair or replacement of major home systems and appliances when they break down due to normal wear and tear. Unlike homeowners insurance which covers sudden damage from specific perils, home warranties handle mechanical failures and aging equipment.

Why You Need a Home Warranty

• Protects against expensive repairs from equipment failures
• Covers items that homeowners insurance doesn't
• Provides predictable budgeting with fixed service fees
• Especially valuable for older homes with aging systems
• Convenient access to qualified service technicians

Common Coverages

Systems coverage typically includes heating and air conditioning, electrical systems, plumbing, and water heaters. Appliance coverage handles refrigerators, ovens, dishwashers, washers, and dryers. Additional coverage options may include pools, spas, well pumps, and septic systems. When covered items break down, you pay a service call fee and the warranty covers repair or replacement costs up to policy limits.

How Is This Different From Homeowners Insurance?

Homeowners insurance covers sudden damage from specific events like fire, storms, or burst pipes. Home warranties cover mechanical breakdowns and failures from normal wear and tear. The two products complement each other, providing comprehensive protection for your home. Both can be valuable, addressing different types of risks.