WHAT IS A HOME WARRANTY?
A home warranty is a service contract that protects homeowners from the cost of unexpected repairs or replacements of major home systems and appliances. It’s essentially an insurance policy for your home’s major systems and appliances, covering them from normal wear and tear.
Here’s a more detailed explanation:
- What it covers:Home warranties typically cover the repair or replacement of parts for things like HVAC, plumbing, electrical systems, major appliances (refrigerators, dishwashers, washers, dryers), and more.
- How it works:You pay an annual or monthly fee for the warranty, and then a service call fee when you need to use it. The warranty company will then either pay for the repairs or the replacement of the covered item.
- Difference from homeowners insurance:Homeowners insurance covers damage to your home’s structure due to events like fire, weather, or theft. A home warranty covers the breakdown of systems and appliances due to normal wear and tear.
- Benefits:Home warranties can save you money by covering unexpected repair and replacement costs, and they can also provide peace of mind knowing that you’re covered if something goes wrong with your home’s systems or appliances.
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