A Basic Guide to Home Warranty Coverage

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    A Basic Guide to Home Warranty Coverage

    You’ve just closed on your dream home and money is tight, to say the least.

    Should you invest in a home warranty to avoid surprise expenses, or will it just waste more of your hard-earned money? Before making a decision, it’s important to understand what home warranties are and how they can help.

    Home Warranties: What Are They?

    Also referred to as home service contracts, home warranties are protection plans that cover the costs associated with the repair or replacement of a home’s crucial appliances and systems when they’re damaged. A home warranty company will usually cover:

    • Electrical
    • Plumbing
    • Appliances such as washers, dryers, microwaves, ranges, and refrigerators
    • Central vacuum systems, HVAC units, and garbage disposals
    • Repair services by electricians, plumbers, and contractors

    Depending on your service needs, it may be possible to buy add-on coverage for second refrigerators, hot tubs, swimming pools, garage door openers, and much more.

    Home Warranty Plan Types

    Home service plans vary in terms of coverage and price—costlier plans typically bring more coverage. The least expensive home warranty plans cover single appliances or systems, while other, more expensive plans cover multiple things, such as dishwashers, refrigerators, and washing machines.

    The costliest home warranty plans cover both major systems and appliances, such as HVAC and electrical systems. However, even these plans may not cover everything. Be sure to read the contract carefully, looking…

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