All Questions About Home Warranties Answered

Welcome to our comprehensive guide on home warranties. A home warranty is a contract between you and an insurance company that covers certain repairs and replacements for your home's major appliances, systems, and components over a specified period.

How it works: Typically, homeowners purchase a home warranty from an insurance provider, which is usually one of the companies offering these plans. The policy outlines what parts of the home are covered, the extent of coverage, and any exclusions or limitations. Homeowners pay a monthly premium to maintain their warranty coverage.

Benefits: Home warranties offer several advantages for homeowners. Firstly, they provide financial protection in case of unexpected repairs or replacements. This can be especially valuable if you're not financially prepared to cover these costs yourself. Additionally, home warranties often include labor costs, which can add up quickly. Finally, many warranties come with peace of mind, knowing that your home is protected against costly damage or breakdowns.

Types of Home Warranties

• Cheaper Homeowner's Warranty (CHW): Designed for homeowners who want to cover most major appliances and systems but don't need extensive coverage. This plan typically costs between $300-$700 per year.
• Standard Home Service Agreement (SHSA): A more comprehensive warranty that covers everything from appliances and plumbing to HVAC and roofing. SHSAs usually cost between $800-$2,000 per year.
• Total Home Warranty (THW): A premium plan that includes all major components of a home's systems and appliances, plus additional coverage for water heater, pool, and generator. THWs typically cost between $1,500-$4,000 per year.