Home Warranty Insurance

About Home Warranty Insurance

Home warranty insurance is similar to homeowner’s insurance, but provides coverage that a basic homeowner’s insurance policy can’t offer. For example, warranty insurance covers appliances, such as refrigerators, stoves, washers, dryers, and dishwashers. Major household systems, such as heating, electrical, and plumbing systems are also covered with warranty insurance. If any of these items break down or fail completely, they will be fixed under the coverage provided by your insurance plan.

If you are paying a contractor to build a home, the contractor will typically supply you with a policy. This policy is usually in effect for one year and can usually be renewed once it has expired.

Warranty insurance can also be purchased for an existing or seasoned home. Many home sellers are choosing to offer warranties with the homes that they are selling to make them more attractive to buyers. If a buyer knows that major household systems and appliances are covered by a warranty protection plan, they feel more comfortable and are much more likely to buy the house.

Many new and current homeowners also see the benefits of home warranty insurance and purchase a policy as a means of protection against expensive and unexpected problems. Almost any home and its contents can be covered by a warranty regardless of the age of the home or the appliances.

How a Warranty Works

Most home warranty plans allow you to make a claim if one of your appliances breaks down or if there is a problem with your home’s major systems. When you file a claim, a technician will be sent to your home to diagnose the problem and to make repairs. In some cases, you may be required to pay a service fee or deductible. The cost of fees and deductibles vary depending upon the policy that you have, but often times, you will pay a charge of $50 or less.

Purchasing Home Warranty Insurance

There are many different companies that sell home warranty insurance. Before purchasing a policy, you will want to make sure that you take time to shop around prior to making a decision. Coverage and costs can vary dramatically depending upon where you purchase the warranty.

When comparing policies, also be sure to read all of the fine print. There may be exclusions that make the policies less valuable. You may even be required to pay service fees or deductibles every time a technician comes to your home. Knowing these things ahead of time will save you a lot of headache.

When looking over a home warranty insurance policy, check to see if it covers items, such as:

• Central air conditioning
• Central heating systems
• Clothes washers and dryers
• Dishwashers
• Ductwork
• Electrical systems
• Plumbing pipes and systems
• Refrigerators and freezers
• Roofs
• Septic tanks
• Spas, swimming pools, and jetted tubs
• Stoves and ranges
• Swimming pools
• Water heaters
• Water softeners

The above list is just an example of what may be covered under a home warranty. The insurance coverage that you need will depend on the appliances and systems that you have within your home. You should always take into consideration the age of your appliances and home systems. Warranty coverage could save you a great deal of money or it may not be worth your while. It simply depends on your individual situation.