Who Pays for Home Protection Warranties?

Erin Easley

Written By Erin Easley

Published 08/29/21
Home Protection Warranties

The average American homeowner can expect to spend upwards of $2,500 per year on the maintenance and repair of home appliances and systems. That figure balloons quickly for homes that are larger and older.

Home protection plan insurance is an effective way of suppressing those significant costs. Homeowners can enjoy home protection policy coverage and be assured that they will not have to pay the full cost out of pocket to repair their malfunctioning refrigerator, dishwasher, water heater, or virtually any other home appliance or system.

But who pays for the home protection warranty in the first place? The short—and perhaps frustrating—answer is: it depends. Often, homeowners purchase protection coverage for themselves. If a home is on the market, the seller, buyer, or even real estate agent may open a policy. 

In this article, we’ll review the ins and outs of home warranties and protection plans. We’ll also explain who may be responsible for purchasing coverage in different situations.

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What Are Home Protection Plans?

A home protection plan is more commonly referred to as a home warranty. This is a kind of service contract between a home warranty provider and a homeowner or representative of the home. This agreement is meant to ensure that expensive appliances, fixtures, systems, and other critical home equipment can be serviced, repaired, and even replaced at affordable and predictable prices. 

A home warranty is distinct from homeowner’s insurance—in fact there is little, if any, overlap. It does operate on a similar principle, however.

The homeowner or policy holder pays a monthly or yearly premium to maintain coverage. If an appliance or system that is covered under the policy requires service, the policy holder submits a claim and pays a small service fee. The warranty provider then arranges for an appropriate technician to make a service call to the home. The equipment is serviced, repaired, or replaced as necessary, but the warranty provider fronts those costs. The homeowner or policy holder has thus saved a significant amount of money.  

What Is Covered Under Home Protection Plans?

Home warranties can be quite expansive. A policy from Liberty Home Guard can cover virtually anything in or around your home. 

Common appliance coverage includes:

  • Refrigerators

  • Dishwashers

  • Ovens, stovetops, and ranges

  • Washing machines and dryers

  • Ceiling fans and exhaust fans

  • Built-in microwave ovens

  • Garbage disposals

  • Garage door openers

Standard systems coverage includes:

  • Air conditioning

  • Heating

  • Ductwork

  • Plumbing

  • Electrical

  • Water heaters

This is not an exhaustive list. We also cover central vacuum systems, generators, pumps, electronics, and so much more. We even offer a suite of home warranty services, such as septic tank pumping, gutter cleaning, carpet cleaning, pest control, and rekeying.

What Won’t a Home Warranty Cover?

There are some home protection exclusions to consider. Home warranty plans are meant to cover appliances and systems that break down from normal wear and tear. Warranties do not cover misuse or abuse. They also do not cover equipment that is stolen or destroyed in a fire, flood, or other disaster—that’s what homeowner’s insurance is for, after all.

In some cases, a home warranty provider will deny coverage for specific items that have preexisting conditions, just as an insurance provider will deny coverage for a home that is in danger of collapse. 

Individual policies may have coverage limits or caps, but this varies by company and policy. Liberty Home Guard works closely with our customers to personalize plans, ensuring that homeowners acquire the thorough, comprehensive coverage they deserve.

How Much Does a Home Warranty Cost?

The cost of a home warranty is dependent on the extent of coverage. A basic plan has a premium of $400 to $600 per year. That cost grows as more services, appliances, and systems are added to the plan.

The average service fee is between $75 and $150. This is a flat fee that is required only when a homeowner submits a claim. 

With the right plan, homeowners will spend less on coverage than they would have spent on repairs out of pocket.

Who Pays for a Home Warranty?

It’s common for homeowners to purchase warranty coverage for their own home, but there are other circumstances to consider.

Sometimes, realtors purchase coverage for homes they represent. When a deal is finalized, the realtor will gift the coverage to the new homeowner. This kind of policy usually lasts for one year and ensures that the new homeowners will not encounter any costly surprises shortly after moving in.

Other times, home sellers will purchase a policy with the intent of transferring it to the new buyers. This entices buyers and can even raise a home’s value.

How to Find Home Warranty Coverage

Obtaining coverage is quite simple. After exploring Liberty Home Guard’s Plans & Policies page, you use our website for a free quote. If you’d prefer to speak with someone over the phone, you can call (866)-851-2024.

Whether you’re a homeowner, prospective buyer, seller, or realtor, we’ll find the right plan for you.


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