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Home Warranty Coverage Debunked

Part of the responsibility of owning a home is protecting the physical investment with a proper home warranty. Good home warranty coverage will not only help you save in the event of an emergency, it provides lasting peace of mind for yourself and your family.

This is best described as an agreement between the homeowner and one or more insurance companies to protect the value of the real estate that the homeowner lives in. It is a flexible proposition that has the ability to cover specific components within the home that is being covered.

What Does a Home Warranty Cover?

Home warranty plans cover the repair and/or replacement of systems and appliances within the home. This means you will not pay to repair or replace your failed appliance or system. With home warranty coverage from American Home Shield, for instance, your contract covers repair and replacement of most models regardless of year, make, or model.

Warranties can cover against manufacturer error, normal wear and tear, and many other things based on the terms of your agreement.


A basic home protection plan will cover the major appliances that are normally in the home. Included in this description are:

1. Refrigerators
2. Dishwashers
3. Washers and dryers for clothes
4. Cooktops, ranges and ovens
5. Microwave ovens that are built into the wall
6. Trash compactors 
7. Ice makers
8. Garage door openers
9. Food processors that are built directly into the property structure

Should any of these items break or require repair or replacement, your home protection plan will pay for what’s needed.


Systems in the home can become extraordinarily expensive to repair, especially as they age. A home protection plan will cover many of the basic systems on a property, including:

1. AC units and ductwork
2. Heating units and ductwork
3. Major electrical systems
4. Major plumbing systems
5. Garbage disposals (not trash compactors; those are covered under appliances)
6. Water heaters
7. Hot and cold water dispensers
8. Central vacuuming systems
9. Doorbells
10. Smoke detection systems
11. Fans

Coverage of systems is virtually guaranteed to save a homeowner money in the long run.

Why Do I Need Home Warranty Coverage?

Most financial experts agree that the cost of a good warranty is nothing compared to price of paying for something that is unprotected. The rule of thumb has always been to have extra savings in order to cover unexpected repair bills and other surprise expenses. When emergencies occur, being able to cover repair bills reduces stress and allows you to enjoy more of your home and family.

Even the best-laid plans, like saving for a rainy day, go awry from time to time.

How Do I Choose the Right One?

The right coverage will come in a package that is suited specifically to the home that you reside in. Top providers like American Home Shield (AHS) offer choices to customers customized to suit their needs.

AHS for instance offers four plan and pricing choices: Combo Plan – covers most appliances and systems; Build Your Own Plan; Systems Plan and their Appliance Plan. Find out how you may benefit from one of their plans 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.