Home Owners Warranty Insurance

Home owners warranty insurance, also known as a home warranty, is a type of insurance policy that covers the cost of repairs or replacements for major systems and appliances in your home. It is a popular choice for many homeowners who want to protect their investment and avoid unexpected repair costs.

How Does Home Owners Warranty Insurance Work?

When you purchase a home owners warranty insurance policy, you pay a monthly or annual fee for coverage. If a covered item in your home breaks down or fails to function properly, you can file a claim with your warranty provider. The provider will then send a qualified technician to assess the problem and determine if the repair or replacement is covered under your policy.

If the repair or replacement is covered under your policy, the warranty provider will typically pay for the cost of the repair or replacement, minus any applicable deductibles or service fees. If the repair or replacement is not covered under your policy, you will be responsible for paying for the cost of the repair or replacement.

What Does Home Owners Warranty Insurance Cover?

The exact coverage provided by a home owners warranty insurance policy can vary depending on the provider and the specific policy. However, most policies cover the following items:

Covered Items
Examples
Plumbing systems
Water heaters, toilets, faucets
Electrical systems
Wiring, outlets, switches
Heating and cooling systems
Furnaces, air conditioners, heat pumps
Appliances
Refrigerators, stoves, ovens, dishwashers

It’s important to review the details of your policy to understand exactly what is and is not covered. Some policies may also offer additional coverage for items such as pool and spa equipment, roof leaks, or garage door openers.

What Are the Benefits of Home Owners Warranty Insurance?

There are several benefits to having a home owners warranty insurance policy:

  • Protection from unexpected repair costs
  • Peace of mind knowing that major systems and appliances are covered
  • Convenient access to qualified technicians for repairs
  • Increased home value and buyer appeal

Having a home owners warranty insurance policy can also be helpful for new homeowners who may not be familiar with the maintenance needs of their home or the condition of major systems and appliances.

How Much Does Home Owners Warranty Insurance Cost?

The cost of a home owners warranty insurance policy can vary depending on the provider and the level of coverage you choose. Typically, monthly or annual fees can range from $30 to $50 per month or $300 to $600 per year. Some providers may also charge deductibles or service fees for each repair or replacement claim.

It’s important to compare policies and providers to find the best coverage and price for your home and budget.

Is Home Owners Warranty Insurance Worth It?

The value of home owners warranty insurance depends on your personal situation and needs. If you have older appliances or systems in your home that are more likely to break down, or if you want the peace of mind that comes with knowing major repairs will be covered, a home owners warranty insurance policy can certainly be worth it.

However, if you have newer appliances or systems that are still under warranty, or if you have the financial means to cover unexpected repairs or replacements, you may not need home owners warranty insurance.

FAQ

What is a home owners warranty insurance policy?

A home owners warranty insurance policy is a type of insurance that covers the cost of repairs or replacements for major systems and appliances in your home.

What does home owners warranty insurance cover?

Most home owners warranty insurance policies cover plumbing systems, electrical systems, heating and cooling systems, and appliances. Some policies may offer additional coverage for pool and spa equipment, roof leaks, or other items.

How much does home owners warranty insurance cost?

The cost of a home owners warranty insurance policy can vary depending on the provider and the level of coverage. Typically, fees can range from $30 to $50 per month or $300 to $600 per year.

Is home owners warranty insurance worth it?

The value of home owners warranty insurance depends on your personal situation and needs. If you have older appliances or systems in your home that are more likely to break down, or if you want the peace of mind that comes with knowing major repairs will be covered, a home owners warranty insurance policy can certainly be worth it.

How do I file a claim with my home owners warranty insurance provider?

If a covered item in your home breaks down or fails to function properly, you can file a claim with your warranty provider. The provider will then send a qualified technician to assess the problem and determine if the repair or replacement is covered under your policy.

What if the repair or replacement is not covered by my home owners warranty insurance policy?

If the repair or replacement is not covered under your policy, you will be responsible for paying for the cost of the repair or replacement.