Home Warranty

A home warranty is a service contract that provides repair or replacement coverage for major home systems and appliances when they fail due to normal wear and tear.

Home Warranty vs. Homeowner's Insurance:

• Insurance: Covers damage from perils (fire, theft, storms)
• Home Warranty: Covers mechanical failures from normal use

  What's Typically Covered:

• HVAC systems
• Electrical systems
• Plumbing
• Water heater
• Major appliances (refrigerator, dishwasher, washer/dryer)
• Optional: Pool, spa, well pump

  What's NOT Covered:

• Pre-existing conditions
• Improper maintenance
• Code violations
• Cosmetic issues
• Items under manufacturer warranty

  How It Works:

1. System or appliance breaks down 2. You call the warranty company 3. They dispatch a service technician 4. You pay the service call fee 5. Item is repaired or replaced

Cost:

• Annual premium: $300-$600
• Service call fee: $75-$125 per visit

  Pros:

• Budget predictability
• No hunting for contractors
• Covers older systems
• Peace of mind

  Cons:

• May not cover specific issues
• Limited to their contractor network
• Coverage limits and exclusions
• Claim denials can occur

  When to Consider:

• Buying a home with older systems
• Tight repair budget
• Don't want to find contractors yourself