Home vs. Manufacturer Warranty: Understanding the Key Differences

When purchasing a new home or appliance, the subject of warranties often comes up. While it may seem like a minor detail, understanding the key differences between a home warranty and a manufacturer warranty can make it easier to choose the best one that can truly protect your investments. With that in mind, it’s worth comparing these two to help you reach a more confident decision, so read on as we outline what each type of warranty covers. 

What Does a Home Warranty Cover?

A home warranty is a contract that ensures you can get covered for the repair or replacement of major home systems and appliances, such as HVAC, plumbing, electrical systems, and more. Typically, home warranties are purchased by homeowners or home buyers to protect against unexpected expenses related to repairing or replacing these essential items.

Home warranties typically cover the following:

• Appliances: Refrigerators, ovens, dishwashers, built-in microwaves, washers, dryers, and more.

• Systems: Heating, air conditioning, electrical, and plumbing systems.

• Optional add-ons: Some home warranty providers offer additional coverage for items like pools, spas, septic systems, and other specialized equipment at an extra cost.

It’s essential to note that home warranties do not cover pre-existing conditions, cosmetic issues, or damage due to negligence or improper maintenance. Don’t let yourself be surprised too, as some other things to know is that there may be coverage limits or caps on the amount the warranty provider will pay for repairs or replacements.

What is a Manufacturer’s Warranty, and How is it Different?

A manufacturer’s warranty, also known as a product warranty, is a guarantee the manufacturer provides. This entails that the product’s workmanship is top-quality and that it should function as promised without any defects for a specified period. This type of warranty typically comes with newly purchased appliances or systems, and protects the buyer against product malfunctions or defects during regular use.

Here are the key differences between a home warranty and a manufacturer’s warranty:

• Coverage: While a home warranty covers multiple systems and appliances in your home, a manufacturer’s warranty only covers the specific product it is associated with.

• Duration: Manufacturer warranties typically have a shorter coverage period, ranging from a few months to a few years, whereas home warranties can be renewed annually.

• Service providers: With a HomeMembership home warranty, you call your preferred service provider to do the repairs or replacements. With a manufacturer’s warranty, the repairs or replacements may need to be carried out by authorized service centers or technicians.

• Transferability: Home warranties are usually transferable to new homeowners if the property is sold, whereas manufacturer warranties may not be transferable.

Choosing the Right Warranty for Your Needs

When deciding between a home warranty and a manufacturer’s warranty, consider the following factors:

1. Age and condition of appliances and systems: If your home has older appliances or systems no longer covered by manufacturer warranties, a home warranty may be a better option for ensuring coverage in the event of a breakdown.

2. Budget: Home warranties come with an annual premium and service call fees, so consider whether this fits within your budget. On the other hand, manufacturer warranties are typically included in the purchase price of a product.

3. Maintenance and usage habits: If you’re diligent with maintenance and don’t use your appliances and systems excessively, you may not need the extensive coverage provided by a home warranty.

4. Peace of mind: If the thought of unexpected expenses for your home’s appliances and systems keeps you up at night, a home warranty may be worth the investment for the peace of mind it provides.

The Bottom Line

The choice between these two types of warranties should be based on your individual needs, considering the age of your appliances, the desired coverage level, and your budgetary constraints. By carefully evaluating these factors and selecting the right warranty for your needs, you can enjoy the benefits of well-maintained appliances and systems while minimizing the financial burden of unforeseen repairs and replacements.

So, what makes HomeMembership the best home warranty company? The answer is simple—flexibility and control. With Home Membership, you get to pick your own service provider to do the repairs, and you pay your bill and submit your receipt to HomeMembership to be reimbursed based on the totals in the brochure. 

This means that you can choose the best service provider for your needs, and you’ll have the peace of mind that comes with knowing you’re getting a fair price for the repairs without waiting for days. Contact us today to get started!