Home Warranty Overview and Comparison

A home warranty is a contract between you, the homeowner, and an insurance company that covers certain expenses related to your home's maintenance and repairs. The goal of a home warranty is to provide financial protection against unexpected costs and potential losses.

When choosing a home warranty, consider factors such as coverage limits, deductibles, and repair options. Most home warranties cover common household items like appliances, plumbing, electrical systems, and roofing. Some may also include additional features like pest control and foundation repairs.

Types of Home Warranties

• Captive Warranty: Covers defects or issues that occur while you own the home, regardless of who owns it at a later date.
• Rehabilitated Warranty: Covers defects or issues that occur after you sell your home and the buyer takes possession. This type of warranty typically requires a 30-day waiting period before coverage kicks in.

Key Components of Home Warranties

1. Coverage Period: The duration during which the warranty is active, usually ranging from one to five years.

2. Deductibles: A fixed amount that you must pay for each claim before your coverage kicks in.

3. Repair Options: The types of repairs and replacements covered under the warranty, such as appliance replacements or roofing repairs.

How to Choose a Home Warranty

1. Research and Compare Warranties: Look for reputable companies with competitive pricing, extensive coverage options, and excellent customer reviews.

2. Consider Your Budget: Calculate your potential costs and choose a warranty that fits within your budget.

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