home warranty

A home warranty is a service contract. You pay the home warranty company and it agrees to repair or even replace items covered in the service agreement.
A home warranty can help you stay ahead of your home’s maintenance and repair costs by connecting you with qualified service professionals when you need them.

From covering minor roof leaks to dishwasher repairs, a home warranty is a safeguard against the overwhelming process of locating, vetting and hiring a contractor who can meet your home’s needs. While homeowners insurance typically covers structural damage and liability from a catastrophic event, it does not protect against normal wear and tear.

Home warranties are not a type of insurance but are instead considered service contracts. Homeowners insurance protects you against repair costs associated with damage to your home’s structure and your possessions in the event of natural occurrences or accidents. A home warranty policy is an agreement in which the warranty company agrees to pay for full or partial repair or replacement of certain items and systems in case of breakdowns, in exchange for a monthly premium and service fees, paid at the time of the repairs

But, what are the costs associated with a home warranty, and what factors will affect those costs?
There are two main costs are associated with home warranties– the premium and the service call fee. The monthly premium covers the purchase amount for a chosen coverage plan. Second, a service call fee is paid each time the customer calls on the warranty company to provide service under the plan.

Premiums
The cost of the monthly premiums that consumers pay for home warranty companies to provide financial protection for their home appliances and systems is based on several factors. Customers can choose from different home warranty plans offered by the warranty companies. Each plan comes with a price that’s determined by what is covered in the plan, the physical location of the covered property, the company itself, and at times the square footage of your home.

Optional add-on protections are usually offered in addition to standard plan coverage’s and will raise the premium costs. Most companies in our rating provide the option of paying on a monthly basis, spreading the total cost over the length of the service contract. Some providers offer discounts for paying the entire annual cost upfront. Others may extend the duration of the plan’s coverage for the same price, effectively reducing the contract cost

Service call Fees
Service call fees, also called service fees, are generally required either at the time of placing the request, or at the time that service is provided.
Service fee amounts for companies in our rating range from $50 to $150.

Typically, one service fee is due for each repair service. Some home warranty providers will offer a selection of service fee levels. Choosing a lower service fee in this situation may lead to higher monthly premium costs, but less out-of-pocket money due at the time of a service call. Conversely, choosing a higher service fee level means paying more for each repair claim with the possible benefit of a lower plan premium cost

What does a home warranty cover?
Home warranty policies generally cover the most common mechanical systems in a home. Plumbing, electrical, and HVAC systems, along with most major appliances such as refrigerators, dishwashers, and washing machines are generally included in one or more of a company’s plans.
Coverage options extend to add-on coverage that provide protection for individual items such as roof leaks, water heaters, air conditioning systems or components, and others. Sometimes these protections may be found in one or more of a company’s plans.