Home Protection Plan
Many people often ask, especially when buying a home: “what is home warranty?” In fact, it's a great question. Home Warranty is a home protection plan which covers most appliances in a home, including air conditioning, heating systems, plumbing systems, etc. when they need to be repaired. In fact many people believe that homeowner's insurance and home warranty are one in the same, when in fact they aren't.
Homeowner's insurance primarily covers the home's structure and its contents, say during a fire or theft and replacement cost of insured items, which may include: televisions, clothing, appliances, etc. When thinking of homeowner's insurance think of losses and replacement costs.
When thinking of Home Warranty, think of repair (though it's important to mention that there may be rare occassions where full replacment is covered under a home warranty.)
And make no mistake, appliances will break down over time, even when they are properly maintained. And that is where a home warranty or home protection plan comes in. For a specified time, typically one year, a home protection plan covers those times when the heating or cooling system breaks down or the electrical system is malfunctioning. A home warranty plan gives you that peace of mind to know that you don't have to spend hundreds of dollars to repair your vital appliances in your home.
Home warranty cost may differ from plan to plan, but the monthly cost can range from $50 a month to $100 dollars a month or more, depending on any other additional coverages you'd like. Often times you can get more competitive rates, with large companies you already do business with, like your bank, mortgage company or even your current insurance provider.
Check with any one of those companies to see if you can get the best and cheapest rate.
To keep your home protection plan cost low, you'll want to get the basic coverages. You'll obviously pay more, if you require to have more things in your home covered like a pool or other smaller appliances. For many people, a few extra dollars a month provides that peace of mind they need in case something unforeseen happens in the future.
What's Covered in a Home Warranty Plan?
Good question. When looking for what is covered in your home protection plan, said coverage may differ from company to company. But typically the following is covered:
- Heating System
Cooling/Air conditioning Unit
Electrical Wiring/Fuse Box/Circuit Breaker
- Hot Water Heater
What Isn't Covered in a Home Warranty Plan?
The following is what may not be covered in a home protection plan. Typically appliances like, stoves and refrigerators aren't covered under basic home warranty plans, however you may be able to get add on services which will cover:
Many other times though appliances, like dryers and washers, ARE covered under warranty plans. This is where you should be doing your homework to find the best home warranty company which includes the most for the best price.
It's important to note that many home warranty plans will NOT cover secondary appliances, for example if you have multiple refrigerators or stoves, even with an appliance plan, you may not get coverage on a secondary one.
Additionally, if it is uncovered that an appliance had a pre-existing condition or was improperly maintained because of neglect or abuse, your appliance may not be covered either.
Check with your warranty company to be sure.
There you have it. If someone asked you: “what is home warranty?” you should be able to answer with confidence after reading this article.