- Home warranties protect homeowners from unexpected repair costs.
- Appliances and built-in systems are covered by home warranties.
- Coverage periods vary by provider and plan type but typically last for one year.
- Benefits include peace of mind, cost savings, and convenience.
Average Home Warranty Coverage Length
The duration of a home warranty varies depending on the provider and the type of coverage you choose. Typically, a home warranty lasts one year, but some providers offer multi-year contracts.
Renewal Process
Home warranties are similar to insurance policies in that they renew annually, which may result in changes in cost or new terms with the company’s offerings.
Then, you can decide whether to keep your plan, change your coverage options, or cancel it altogether.
Home Warranties Cover Common Expenses
A home warranty is an optional service contract that covers expenses related to repairing or replacing major home appliances and systems, such as HVAC, plumbing, electrical, and kitchen appliances.
A home warranty provides homeowners peace of mind by ensuring they won’t have to pay out of pocket for costly repairs if an appliance breaks down. It is not the same as homeowners insurance, but it can complement it for added protection.
Types Of Home Warranties
- Appliances: This type of warranty covers washers and dryers, as well as large kitchen appliances like refrigerators, dishwashers, and ovens.
- Systems: A built-in systems warranty covers major systems built into the home, such as garage door openers, heating and cooling systems like A/C and HVAC, and plumbing.
- Entire home: This type of warranty provides more comprehensive coverage, including everything in the other categories. It often reimburses extra expenses related to paying out other insurance policy claims.
Some companies offer standard plans with add-ons or tiers of coverage.
Average Home Warranty Coverage Length
The duration of a home warranty varies depending on the provider and the type of coverage you choose. Typically, a home warranty lasts one year, but some providers offer multi-year contracts.
Renewal Process
Home warranties are similar to insurance policies in that they renew annually, which may result in changes in cost or new terms with the company’s offerings.
Then, you can decide whether to keep your plan, change your coverage options, or cancel it altogether.
Benefits Of A Home Warranty
In the first year of home ownership, 77% of buyers face unexpected repair expenses.
This uncertain period can be costly, emphasizing the potential benefits of being protected with a home warranty.
Peace Of Mind
A home warranty provides peace of mind by covering your appliances and systems, so you don’t have to worry about your wallet taking a hit due to unexpected repair costs.
Cost Savings
Another benefit of a home warranty is cost savings. The warranty provider covers the repair or replacement cost if a covered item breaks down, potentially saving thousands of dollars in repairs.
Convenience
If a system or appliance breaks down, all it takes is a call to the warranty provider, who will send a qualified technician to your home to fix the problem. You won’t have to spend time searching for a reputable repair person or dealing with the hassle of scheduling repairs.
Frequently Asked Questions (FAQs)
What Items Are Typically Covered By A Home Warranty?
Home warranties typically cover major appliances and systems, such as HVAC, plumbing, electrical, and kitchen appliances.
The specific items covered by a home warranty can vary depending on the provider and the type of coverage you choose.
Does A Home Warranty Cover Pre-Existing Conditions?
A home warranty does not cover existing damages to appliances or systems.
A problem not previously identified during a home inspection may be considered “undetectable” and, therefore, not a pre-existing condition.
Are There Waiting Periods For Home Warranty Plans?
Like many insurance plans, home warranty plans have waiting periods of approximately 30 days before coverage starts.
Can I Choose My Repair Person?
Some providers require you to use their network of qualified technicians, while others allow you to choose your repair person.
How Is A Home Warranty Different From Homeowner’s Insurance?
Homeowner’s insurance typically covers damage to your home and personal belongings due to fire, theft, or natural disasters.
A home warranty covers repairing or replacing major home appliances and systems due to normal wear and tear.
Is A Home Warranty Included When Purchasing A Home?
Home warranties are not typically included when buying a house, but they can be purchased separately by the buyer, seller, or realtor.
This coverage can be a good incentive to close a deal, offering peace of mind to buyers by covering unexpected expenses common in the first year of homeownership.
Alternatively, the buyer may purchase a home warranty independently as part of the home-buying process.
Can A Home Warranty Be Transferred To A New Homeowner?
Yes, a home warranty can be transferred and remains active for the remainder of the original agreement. The new owner can then evaluate their options for extending coverage.
