Understanding the Basics of Home Warranty Plans
A home warranty plan is a contract between you and a manufacturer or distributor that covers repairs and replacements for certain parts of your home's systems and appliances. The typical coverage includes plumbing, HVAC, electrical, and cosmetic items.
Factors to Consider When Choosing a Home Warranty Plan
When selecting a home warranty plan, consider the following factors:
- Coverage limits and exclusions
- Pre-service and post-service charges
- Deductible amounts
- Additional services offered (e.g. home maintenance, home inspections)
Types of Home Warranty Plans
There are several types of home warranty plans available, including:
- Credit-based plans: These plans require you to pay a deposit and provide proof of creditworthiness before coverage begins.
- Deductible-only plans: These plans require you to pay a deductible for each covered item, but do not require any deposits.
- Standard plans: These plans cover most common repairs and replacements with no deductibles or fees.