How Home Warranties Work
Want to protect your home without breaking your wallet? The best way to protect your home, whether you’re a new or seasoned homeowner, is with a home warranty plan. A home warranty, sometimes called home protection warranties, is a service contract that covers the cost of repairs and replacements of your home’s systems and appliances. When something in the home breaks down, all you have to do is contact your warranty company and they do the rest. This saves homeowners money and time from having to find and coordinate repairs on their own.
Home warranties are not the same as homeowners insurance, which covers the home when disaster hits. A home warranty includes both a home systems warranty and home appliances warranty. This means that when a home system -- like heating -- or an appliance -- like the dishwasher -- breaks down from normal wear and tear, your home warranty covers the cost and repairs or replacements as needed. The homeowner invests in an annual coverage plan that works for them and is responsible for a flat service fee with each repair. The home warranty company does the rest.
