FAQs for Home Warranty

What is a home warranty?

• A home warranty plan is a service agreement that provides protection against the cost of unexpected wear and tear repairs or replacement on your property's major mechanical systems, heating system, water heater, electrical, plumbing, appliances, roof, and more.

What is the difference between a home warranty and home owner’s insurance?

• Your homeowner’s policy is designed to cover hazards in your home such as theft and specific disasters. A home warranty plan provides coverage for repairs to mechanical systems or appliances that break down due to normal wear and tear. 

How long is the coverage?

• The length of coverage can vary along with pricing.  The terms for a plan are around one year at a time.

How does a home warranty work?

• When a system fails, one phone call will get a service provider out to the home to repair or replace the unit.  A co-payment is paid to the service provider and the rest of the bill on all covered items is paid by the warranty provider.

Can these plans be renewed?

• These plans can be renewed for continual coverage.
  

Does it matter how old my appliances are?

• Whether your home’s mechanical systems and appliances are new or a hundred years old, they are covered as long as your systems and appliances are in good working order at the start of the contract period.

How can I purchase one?

• Some sellers offer these plans to buyers as an incentive to purchase their home.  When the seller offers a plan they can get the listing coverage of 6 months for free and the plan is not paid for until the closing table.
• Many buyers purchase a home warranty plan for a home that they are buying and pay for it at the closing table.
• Anyone can purchase a home warranty plan for their house at anytime you do not need to be selling or buying a home. You can find a lot of information about home warranties from your REALTOR®.

Information provided by Kirsten Kuhlman