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What is a Home Warranty?

The premise behind the typical home warranty is simple. It is a policy that covers various items and appliances in the home.

In the event that a covered item breaks, the policy will cover the cost to repair or replace it. You will be responsible for a small fee, but the rest will be covered by the plan.

Most home warranties cover built-in home systems and appliances. For an extra fee per month, some plans can be expanded to include freestanding items as well. The cost of the typical home warranty plan is minimal and often mandated by laws within a particular state.

A lot of responsibility goes along with owning a home. You have to be willing and able to make repairs and perform maintenance as needed. Without doing so, your valuable investment will start falling apart. As nice as it would be to have a stockpile of cash on hand for such contingencies, this is not always possible for many homeowners.

The advantage to purchasing such insurance is not only in the savings. Protecting your home appliances without needing a huge savings account as a buffer is peace of mind for many homeowners.

What's Covered?

A home warranty policy will differ in its’ plan offerings, which vary by the provider. Since each plan will be slightly different, it's important to read the fine print and be completely aware of what is covered and what isn't. In most cases, though, the following items are covered: 

  • Microwaves
  • Garbage disposals
  • Heating systems
  • Plumbing systems
  • Water heaters
  • Electrical wiring
  • Telephones
  • Stoves, ovens and ranges
  • Dishwashers
  • Ceiling fans

As you can see, the items that are usually covered are built into the house. You may be able to add expanded coverage for freestanding items such as:

  • Water pumps
  • Dryers
  • Washing machines
  • Air conditioners
  • Swimming pools

What More About Home Protection Plans

What are the Benefits?

Any of the above-named items may be repaired or replaced, based on the coverage chosen and policies of the home warranty company.

For homeowners, the primary benefit of getting a home warranty plan is not being on pins and needles about costly repairs. In addition to helping with cash flow, a home warranty plan helps you keep the appliances and other items in your home in good working order. With a company like American Home Shield, typically, repairs are made promptly, so major problems are kept at bay more easily. They are also the industry leaders when it comes to offering service and comprehensive plan choices.  If you're serious about keeping your home in terrific shape, sign up for a home warranty with them today.

  

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†Average repair and replacement costs as reported in a nationwide survey: A Study of Homeowners Appliance and Home System Service Experiences Decision Analyst (2011) and reprinted with their written permission.

Home protection plans are subject to exclusions and limitations including repairs or replacements of covered home system components and appliances. See contract for details.