Home Warranty

Whether you want to cover the wear and tear of your home’s appliances, systems or both, there are a few things to understand. Knowing these provides an advantage during the shopping process and helps you find the right provider for your needs.

What Is A Home Warranty?

A home warranty is a type of financial protection for homeowners’ appliances and systems, where a provider pays to repair major appliances in exchange for premium payments. Unlike homeowners insurance, it is optional.

The home warranty provider has a network of their own technicians who service customers’ appliances and systems after claims are approved. It’s important to note that in most cases, warranty policyholders can’t choose their own contractors to conduct repairs.

What Home Warranties Cover

Home warranties cover major home appliances and systems from typical wear and tear. Your policy may cover appliances, systems or comprehensive coverage of both. For example, your home’s washer and dryer, kitchen appliances, plumbing, electrical systems and HVAC systems are commonly covered under a typical home warranty.

Most home warranty providers have a basic plan, an upgraded plan and additional coverage  options for additional appliances, systems, or home elements. Some providers also have a la carte coverage for extra appliances or systems.

Keep in mind that breakdowns may not be covered if you have misused or improperly cared for your appliances, your appliances have had similar issues prior to signing your contract or your policy lists something as an exclusion.

Home Warranty Pricing

A home warranty plan has two main costs: the yearly premium, paid annually or monthly, and the service fee required each time a technician is sent to complete a repair or replacement. Some plans also have a sign-up or administrative fee and possibly a cancellation fee. Additionally, you may be able to reduce your plan’s service fee if you agree to pay higher premiums up front. 

Pricing also depends on the provider and policy you choose, coverage details, your location, and the size of your home.

Home Warranty Regulation

Home warranty companies are regulated on a geographical basis, with each state having its own regulatory body. Consumers who feel they are not being treated fairly can file a complaint with the regulating authority in their state. 

For a more detailed understanding of home warranties, read our home warranty guide.