What Is a Home Warranty? | Hughes Development

A home warranty plan safeguards the appliances and systems in your home: significant home appliances, plumbing, electrical, and HVAC systems. Dissimilar to your homeowner’s insurance policy, which safeguards your home from covered threats, a home warranty is a service agreement that covers overall wear and tear. And whereas homeowners’ insurance is required by the majority of lenders, home warranties are not.

A home warranty can protect your appliances and systems following the manufacturer’s warranty has run out

A home warranty may be worth buying if you’re concerned about the expense of repairing or replacing vital household appliances and systems

In What Way Does a Home Warranty Work?*

Should one of your covered systems or appliances need repair, you’ll file a claim and your home warranty is going to send a pre-qualified technician to make a diagnosis of the issue. Considering it’s a covered impairment, a home warranty can assist in paying for the repair and/ or replacement of the appliance(s) or system(s), devoid of any deductible your warranty necessitates. Deductibles could apply for each claim you file.

A home warranty is an agreement with a set deadline — usually monthly or annually, often times longer. You can usually reactivate a home warranty after it expires, and a lot of them are set to renew automatically.

Do All Home Warranties Come with a Deductible?

It’s common for home warranties to come with a deductible that you are going to be responsible for, typically per claim. Outside the deductible, your home warranty can assist in paying for the repair and/ or replacement expenses for covered systems and appliances. There may be particular expenses not covered by your home warranty plan, like permits or removal of equipment. Always check your warranty stipulations for restrictions and exceptions.

What Is Covered in a Home Warranty?

A home warranty can usually cover the repair, or replacement, and servicing of necessary systems and appliances in your home that are not directly associated with the structure of your home. Covered appliances could comprise of your:

Refrigerator
Dishwasher
Range
Stove
Dryer
Washing machine
HVAC, plumbing, electrical, and systems

Subject to the provider, it’s also possible to get a home warranty only for certain types of appliances and systems.

What Type of Plumbing System Does Home Warranties Cover?

Plumbing repairs and replacements are usually covered by a comprehensive home warranty plan.

Toilets
Water heater
Instant hot/cold water dispensers
Sump pumps
Garbage disposals
Interior gas, water, and drain lines
Jetted tubs/ whirlpools

Do Home Warranties Cover Ductwork?

Ductwork is deemed a part of your HVAC system, so it’s usually covered by a comprehensive home warranty plan. Many warranties cover ductwork for A/C and heating units (up to 2 units each), under a comprehensive home plan and the built-in systems plan.

What Isn’t Covered by a Home Warranty?

Home warranties might not cover items that are covered by a different warranty, like retailer’s or manufacturer’s warranties. Be sure you completely understand in what way your warranty works, and if any appliances or systems are not included in coverage.

How Much Does a Home Warranty Plan Cost?

A home warranty plan costs at least a couple of hundred dollars annually, subject to your location, the plan you choose, and provider. Since home warranties offer differing degrees of protection, the most budget-friendly plans are those with standard coverage. Think of them as an insurance policy: decreased premiums mean increased possible out-of-pocket costs.

Are Home Warranties Worth It?

When determining if a home warranty is beneficial, think about how much it would cost to have a system fixed or the replacement of one of your appliances. The possible savings your home warranty offers may quickly outweigh the expense of your plan.

*The product being offered is a service agreement and is distinct and separate from any product or service warranty which could be offered by the home builder or manufacturer.

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