What Is a Home Warranty and How Does It Work?

home kitchen

A home warranty is a service contract that covers repairs and replacements of major systems and appliances in a home. It is meant to provide financial protection against the cost of unexpected breakdowns of essential household systems and appliances. 

In this article, learn more about home warranties and how they work.

What Is a Home Warranty?

A home warranty is a form of insurance policy that covers the repair or replacement of major systems and appliances in a home. It covers items such as heating and cooling systems, plumbing systems, electrical systems, major kitchen appliances, and more. Home warranties are typically purchased as an add-on to a homeowner’s insurance policy.

Home warranties protect homeowners from unexpected and expensive repairs due to wear and tear or mechanical failures. They can be especially helpful for older homes and homes with aging appliances, as well as new homes with appliances that are still under warranty.

How Does a Home Warranty Work?

When you purchase a home warranty, you will be paying an annual premium that is usually determined by the type of coverage you are purchasing. Depending on the policy, you may also have to pay a deductible.

Once you’ve paid the premium and deductible, you can make repair requests. With Home Membership, you can pick your own provider and submit to be reimbursed based on the coverage chart in the brochure.

If the warranty covers the issue, the technician will repair or replace the item, and the warranty company will cover the cost. If the issue is not covered, you’ll be responsible for the cost of the repair.

It’s important to note that home warranties typically have limits on the types of repairs they will cover and the amount they will pay for each repair. Be sure to read the fine print of your policy, so you know what is and isn’t covered.

What Is Covered in a Home Warranty?

A home warranty is a service contract that covers repairs or replacements of major appliances and systems in your home. This includes your furnace, air conditioning, plumbing, electrical systems, and more.

Home warranties will also cover certain items such as refrigerators, dishwashers, washing machines, and other large appliances. The coverage offered by a home warranty will depend on the plan you choose, but typically coverage includes parts and labor for the repair or replacement of the covered items.

In addition to repairs and replacements, some home warranties also offer additional services such as emergency services, preventive maintenance, and discounts on services not covered by the warranty. For example, some home warranties will offer discounts on services like plumbing, HVAC, and electrical work.

What Are the Advantages of a Home Warranty?

Here are some of the advantages of having a home warranty:

1. Peace of Mind

A home warranty provides peace of mind that if something goes wrong, you won’t have to pay out of pocket for expensive repairs. Home warranties also cover items not covered by your homeowner’s insurance, such as home appliances and systems.

2. Cost Savings

Home warranties can save you money in the long run by helping to cover the cost of repairs and replacements for items that may be too expensive to repair or replace on your own. Home warranties also typically have lower deductibles than homeowner’s insurance, so you can save even more money.

3. Protection

A home warranty can help protect you from unexpected expenses and help ensure that your home and its contents are protected. Home warranties can also help protect you from liability if someone is injured on your property.

Final Thoughts

A home warranty can be a great way to protect yourself and your home from unexpected expenses. It can provide peace of mind that your home and its contents are protected and can save you money in the long run. So if you’re looking for a way to protect yourself and your home, a home warranty may be the right choice.

For your home warranty needs, contact us at HomeMembership. We offer a home warranty that will protect your home — and offer numerous membership benefits — so you can enjoy the things you love. Check out our easy to understand plan and pricing to get started today!