What is a Home Warranty?

It’s a fair assumption that you’ve had homeowner’s insurance since you first bought your home. But a home warranty can provide coverage beyond home insurance alone.

What is a home warranty, though? Below, you’ll learn more about what these plans are, how they work, and why more homeowners than ever before are investing in a home warranty plan for maximum protection.

How Does a Home Warranty Work?

Your homeowner’s insurance policy only pays for repairs and replacements after a catastrophic event, like a fire or home break-in. A home warranty, on the other hand, will pay for the repair or replacement of your household appliances and systems from wear and tear as well as electrical and mechanical breakdowns. In the event that a covered appliance breaks down, you’ll simply file a claim with your home warranty provider. They’ll send an approved technician to diagnose the issue, who will then provide a repair or replacement as long as the problem is covered by the warranty.

Home warranties do have set term limits, often taking the form of yearly agreements, but you’ll have the option to renew. In fact, many providers let you renew your warranty automatically.

Do All Home Warranties Have a Deductible?

Much like an insurance policy, a home warranty will often have a deductible. The amount of the deductible will vary by warranty provider, and some providers also charge a modest fee for permits or the removal of damaged equipment.

Nevertheless, once you pay off the deductible, your home warranty will cover the remainder of any repair or replacement costs for covered appliances or household systems.

Do Home Warranties Save You Money?

Consider what would happen if your refrigerator were to break down. You’d spend an average of $200 to $300 on a single repair, and your homeowner’s insurance won’t pay a dime unless the damage was caused by a specific covered incident.

All of that is to say that the answer is yes. A home warranty can provide enormous savings by helping you pay for all sorts of breakdowns or even replacing high-value appliances.

What Does a Typical Home Warranty Cover?

A home warranty will typically cover the repair or replacement of your major appliances and household systems. These most commonly include the following:

• Stove
• Refrigerator
• Dishwasher
• Washer/dryer
• HVAC system
• Swimming pool

You’ll also want to check with your provider about coverage for secondary structures (e.g., a detached garage) to ensure that all of your systems are protected.

What Is Typically Not Included in a Home Warranty?

A typical home warranty is limited to your household appliances, which means it will not cover structural damage that occurs to your home. Additionally, home warranties do not often cover the following:

• Damage due to weather-related events
• Damage due to pests, such as rodents or insects
• Pre-existing conditions that predate the warranty
• Appliances already covered by a manufacturer’s warranty

Some providers may have additional terms and exclusions, so check carefully to find a warranty provider that aligns with your household needs.

Do Home Warranties Cover Plumbing?

Does a home warranty cover plumbing? Most home warranties cover plumbing, though some providers offer plumbing protection as a separate package to give homeowners greater flexibility over their coverage. These plans will cover your home’s fixtures, water heater, and the water lines that carry water to and from your home.

What Does a Basic Home Warranty Cover Compared to a Premium Plan?

Many home warranty companies offer varying packages and plans. A basic home warranty will generally cover your home’s standard appliances and systems, while premium plans provide coverage for high-end appliances, consumer electronics, or other systems altogether.

With these details in mind, some consumers may be better off selecting a provider that offers multiple types of warranties (electronics, plumbing, etc.). In doing so, they can purchase coverage only for what they need.

What Does a Home Warranty Cost?

On average, a home warranty costs $600 per year, but you certainly get what you pay for. Choosing a more affordable plan may not provide coverage for your house or the appliances it contains, and not every plan will cover your plumbing, either.

As such, it’s often best to choose a plan that you can customize to your exact needs (even if it means purchasing sewer coverage separately) so that you align your warranty with your budget.

How Can a Home Warranty Help Realtors and Property Managers?

If you’re a real estate professional or a property manager, a home warranty can be remarkably valuable.

For realtors, a warranty may cover the home’s systems and plumbing until a buyer can be found, saving you from having to pay for repairs prior to a sale. Property managers can rely on a warranty to cover repairs and replacements within a rental unit, allowing them to allocate more of their budget to other forms of maintenance.

Other FAQs Around Home Warranty

Do Home Warranties Cover HVAC Components?

Yes! A home warranty will cover your home’s air conditioning system (including its compressor, blower motor, and evaporator coils), furnace, and household ductwork.

Do Home Warranties Cover TV Sets?

Home warranties are usually limited to major appliances like refrigerators or hot water heaters, though some providers will offer protection plans that cover consumer electronics like TVs and computers.

Does My Home Warranty Cover My Garage Door Opener?

Garage door openers may not be covered by your home warranty, but today’s top providers offer warranty plans that cover the service or replacement of garage door openers and related equipment. Check with your provider for more details.

Customize and Save

ARW Home offers multiple warranty packages, including plans for your home’s major appliances, plumbing, and consumer electronics. Choose the plan that fits your needs, and save money by investing in a plan that suits your home and your budget. To learn more, explore the plan information on our website or give us a call at (888) 658-0630.