The Main Topic: Home Warranty Basics

What is a Home Warranty?

• A home warranty is a contract between you, the homeowner, and an insurance company that covers certain types of repairs and maintenance for your home. It's essentially a protection plan that pays for unexpected expenses related to household items.
• Typically, homeowners purchase a home warranty after they've bought their home or before it's sold, but some sellers may also offer this service as part of the sale process.

Benefits of Having a Home Warranty

Having a home warranty can provide several benefits. For one, it can help to prevent costly repairs and maintenance costs from building up over time. It can also give homeowners peace of mind knowing that they're covered in case something goes wrong.

• It can be especially helpful for new homeowners who may not know what services are typically covered or which ones require special insurance coverage.
• Homeowners with older homes or those with specialized appliances (such as pool heaters) may also benefit from a home warranty, as these items can be costly to repair or replace.

How Does a Home Warranty Work?

A typical home warranty contract outlines the specific services and repairs that are covered under the policy. In most cases, homeowners pay an annual premium to their insurance company, which is used to fund the coverage for specified items.

• Certain repair services may include:
  1. Plumbing repairs
  2. Electrical repairs
  3. HVAC maintenance and repair
  4. Appliance replacements (such as oven, dishwasher, or refrigerator)