What is a home warranty? A home warranty is a contract between you and an insurance company that covers major home repair and replacement costs in the event of an unexpected breakdown or issue. This can include things like appliances, plumbing, electrical systems, and more.
The terms and conditions of a home warranty vary depending on the provider and the specific plan you choose. Most warranties cover repairs and replacements for certain items, such as refrigerators, ovens, dishwashers, and washing machines. Some plans may also include coverage for pest control, septic systems, and other specialized services.
A home warranty typically requires you to pay an annual premium, which can range from $300 to $1,000 or more per year depending on the provider and the plan. The premium covers a set amount of money for each covered item, usually around $500-$1000.
The most common types of home warranties include:
When choosing a home warranty company, consider the following factors: