Subscribe to receive our emails & get
Call us: (833) 544-8273
Written By Ryan MerchantPublished 04/20/22
The terms and conditions of a home warranty are outlined in a home warranty or home service contract. Policy holders should thoroughly review their contract to understand coverage stipulations, costs, and other important information. Homeowners who are pursuing home warranty coverage for the first time should also be mindful of what a contract or homeowner’s user agreement entails.
In this article, we’ll review the information and conditions you can expect to find in a warranty contract.
A home warranty is a service agreement between a homeowner or home representative and an independent policy provider. The homeowner or representative pays a monthly or yearly premium, and the policy provider in turn agrees to cover the repair or replacement of certain home appliances and systems.
There can be substantial variety from plan to plan, but a home warranty at its core is an affordable means of maintaining critical—and often expensive—home equipment.
Home warranty plans are occasionally referred to as appliance insurance, but this is a bit of a misnomer. A home warranty is not the same thing as a homeowner’s insurance policy, even if it operates on a similar principle.
A home warranty differs from homeowner’s insurance in the nature of its coverage. Homeowner’s insurance covers the structure of a home and personal property contained therein in the event of a fire, storm, burglary, or other unfortunate circumstance. An insurance policy will not cover the replacement of any home appliance or system that breaks down from years of general use. Without a warranty, that is the homeowner’s responsibility.
A home warranty will not pay out if personal property is destroyed or stolen—that’s what insurance is for. It will, however, cover the cost of repair or replacement if a refrigerator, heater, dishwasher, or other such appliance malfunctions.
A home warranty can cover virtually anything in your home. Many warranty companies offer base plans that cover standard appliances and systems. The Liberty Home Guard Appliance Guard plan, for example, covers the following equipment:
We provide a Systems Guard plan as well. This covers the following:
For homeowners interested in complete home coverage, we also offer a Total Home Guard plan, which encompasses all the above.
Homeowners can personalize their plans with additional items as necessary. Many customers opt to add coverage for water softeners, sprinkler systems, central vacuum systems, pools, generators, electronics, and more.
Finally, home warranties can also provide a variety of home maintenance services. Homeowners can amend a policy to include services such as pest control, gutter cleaning, carpet cleaning, rekeying, septic tank pumping, and window washing.
While the breadth of home warranty coverage is expansive, there are certain components and problems that a warranty is unlikely to cover. We’ll explain this further as we get into warranty contracts.
A warranty contract or user agreement is a thorough writeup of a homeowner’s obligations and benefits as a policy holder. Let’s break it down section by section.
This information is important. It’s not worth scheduling a service call for a broken component that the policy won’t cover.
This section may also include language to protect the warranty provider from legal liability.
In short, a warranty contract is an invaluable document. It provides legal protection for both the homeowner and warranty provider, and it outlines every bit of information that is relevant to the policy.
If you’d like to review a sample contract, you can find one on the Liberty Home Guard website. When you’re ready to craft a plan to protect your home, call (866)-761-2351.