Glossary

Embark on your homeownership journey with confidence, thanks to Liberty Home Guard's user-friendly glossary.

We understand that the abundance of industry terminology can be overwhelming, but worry not! We have put together a comprehensive compilation of commonly used words and phrases related to homeownership, home warranties, real estate, and more.

This easy-to-understand glossary will empower you to navigate through the complexities of the homeowner's world. Say goodbye to confusion and hello to a better understanding of home warranties.

Let Liberty Home Guard be your trusted source of knowledge as we simplify the language and help you protect and maintain your beloved home.

Application for Warranty

The formal request or submission to enroll in a home warranty plan.

Code Violation Corrections

Code Violation Corrections encompass identifying and rectifying deviations from local building codes in structures or installations undergoing repair or replacement.

Commercial-Grade Equipment

Commercial-grade equipment represents the epitome of durability and performance in the world of appliances and machinery.

Cancellation Policy

A cancellation policy is a set of terms and conditions that dictate the circumstances under which a contract or agreement can be terminated.

Claim Denial

A Claim Denial refers to a situation in which a requested repair or replacement is not approved or covered under the terms and conditions of a contract

Coverage Limit

Coverage Limits, as the name suggests, define the maximum amount a home warranty provider will pay for a repair or replacement.

Catastrophe Claim

A catastrophe claim is a lifeline for homeowners—a claim filed in the aftermath of significant, often unforeseen events that cause substantial damage to a property's covered systems or appliances.

Depreciation in Homeownership

Depreciation is the gradual decrease in the value of an asset over time. In the context of homeownership, it refers to the reduction in value of various components of a home, including its systems and appliances.

Domestic-Grade

Appliances and systems designed for typical household use rather than heavy commercial usage.

Duplicate Coverage in Home Warranty

Duplicate coverage in the context of a home warranty refers to a situation where the same item or aspect of your home is covered by more than one insurance policy or warranty.

Dwelling Policy

A dwelling policy stands as a specialized insurance offering, meticulously crafted to shield the physical structure of your home.

Effective Date of Warranty

The date from which the coverage provided by the home warranty plan becomes active.

Equipment Breakdown Coverage

Equipment Breakdown Coverage is a type of insurance policy that provides protection for homeowners against the specific costs.

Fair Market Value

The current cost of replacing an item with one of similar age and functionality, accounting for depreciation.

Financial Protection

Financial protection refers to the safeguarding of a homeowner's financial resources against unexpected and potentially costly repairs.

Grace Period

Grace Periods in contracts offer crucial flexibility and protection, allowing reasonable delays in meeting obligations.

Home Inspection

A comprehensive evaluation of a property's condition, identifying potential issues and needed repairs.

Home Warranty Contract’s Effective Dates

The period during which the terms and coverage of the home warranty plan are in effect.

Home Warranty Waiting Period

The specified time frame after purchasing a home warranty during which certain coverage may not be active.

Homeowners Insurance

Coverage protecting against unexpected events such as accidents, natural disasters, and theft.

Home Warranty Emergency Service

Understanding the intricate components of Home Warranty Emergency Service is pivotal for homeowners seeking to fortify their homes against unexpected crises.

Home Warranty Claim Limits

In essence, the claim limit is the upper threshold that a home warranty company commits to covering for eligible repairs or replacements within a specified timeframe.

Home Sale Contingency

A cornerstone of real estate transactions, the home sale contingency is a contractual provision designed to safeguard the interests of both buyers and sellers.

Housing Expense Ratio

The Housing Expense Ratio (HER) assumes a pivotal role in the toolkit of lenders and financial experts as they evaluate the affordability of a home.

Homeowners Protection Act

Enacted by Congress in 1998, the Homeowners Protection Act, also known as the Private Mortgage Insurance (PMI) Cancellation Act, is a crucial piece of legislation designed to act as a formidable safeguard for homeowners.

Home Equity Loans

Home equity loans offer financial empowerment for homeowners, allowing strategic use of property value for various financial goals and benefits.

Homeowners Warranty

A Homeowners Warranty, also known as a Home Warranty or Home Service Contract, is a contractual agreement designed to cover the repair or replacement costs of major home systems and appliances

Home Owners Warranty

Purchasing a home is a momentous step, and safeguarding this significant investment is a top priority for homeowners.

Home Warranty Claims

A home warranty claim is a formal request made by a homeowner to their home warranty company for the repair or replacement of a covered system or appliance.

Home Dwelling Insurance

Home Dwelling Insurance, often called homeowner's insurance, is a type of property insurance covering a private residence.

Insurance to Value

Insurance to Value, in the context of homeownership, is a critical concept that determines the amount of coverage a homeowner's insurance policy provides.

Original Manufacturer's Warranty

An Original Manufacturer's Warranty is a contractual agreement between the manufacturer of a product and the consumer

Proper Operating Condition

The state in which systems and appliances are functioning as intended without defects or malfunctions.

Pre-Existing Condition

Pre-existing conditions, often excluded from home warranty coverage, require homeowner awareness and impact claim approval and costs.

Renewal Notice

A renewal notice is a communication from your home warranty provider reminding you to extend your coverage before it expires

Repair and Replacement Coverage

Repair and Replacement Coverage in home warranties covers item repairs or replacements due to normal wear, with terms and limits.

Repair Timeframe

At its core, repair timeframes denote the duration required to complete a repair or maintenance task once identified and initiated.

Repair Timeframes

One of the ever-present hurdles is the unexpected need for repairs, ranging from malfunctioning HVAC systems to leaky roofs.

Replacement Agreement

A Replacement Agreement is a legal contract that outlines the terms and conditions for replacing an item or property.

Replacement Cost

Replacement cost (RC) is a term used in the insurance industry to refer to the amount of money that would be required to replace an insured item with a new one of similar kind and quality, without any deduction for depreciation.

Recoverable Depreciation

Recoverable depreciation is a term commonly used in the insurance industry, specifically in the context of homeowners' insurance.

Service Contract

An agreement outlining the terms under which repairs and replacements will be provided for covered items.

State-Licensed Technicians

State-licensed technicians, trained and examined for competency, offer quality, regulated services, and ensure effectiveness.

Transferable Warranty

A warranty that can be transferred to a new homeowner when the property is sold, offering continued protection.

Trade Service Call Fee

A Trade Service Call Fee, also known as a service call fee or trade call fee, is a fixed charge that homeowners pay when they request a service visit from a technician or contractor covered under their home warranty policy.

Warranty Deed

A legal document that confirms ownership and provides assurances regarding the property's title.

Workmanship Guarantee

At its essence, a Workmanship Guarantee, often synonymous with a Workmanship Warranty, represents a commitment from service providers, contractors, or home warranty companies regarding the quality and durability of the work undertaken on a specific projec

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