4 Things You Should Know About Home Warranties


A home warranty is an insurance policy that protects your home against mechanical failures. It covers specific systems in the house, such as the plumbing and electrical system, but does not cover disasters like fires or floods. Home warranties usually only last one year, but it’s important to note that some policies can be extended for years after that if you wish to continue coverage on your appliances.

Pro Tip: Make sure that your contract clearly states what will be covered by the warranty and makes no mention of any “limited” or “partial” coverage. Some companies try to get away with not covering certain items or conditions by putting disclaimers in their contracts that limit the amount of coverage your warranty will provide.


What You Should Know About Home Warranties

Although home warranties are becoming more popular, many people still do not fully understand what they are or how they work. Here are four things you should know about home warranties.


1. What is Covered by a Home Warranty?

Many factors affect what your warranty will cover. One of the most important things to consider before buying a home warranty is to look at each item listed in the contract and determine whether you believe it needs to be covered under your policy. If you are in Georgia, click this link to get a caring home warranty company. Some companies try to get away with only covering the bare minimum number of appliances they will provide coverage for, while others go above and beyond in their effort to protect you and your family from damages caused by unexpected breakdowns in your home.


Many people try to use their home warranty as a replacement for regular maintenance and don’t include it in their budget. However, a warranty is not like an insurance policy designed to cover unexpected actions such as accidents. Therefore, you must understand the limitations of your warranty service before you make claims; they will only pay for appliances that malfunction over time and are not due to misuse or accident.


2. The Cost of Home Warranty

A home warranty cost depends upon the company providing the service and the size of your home. Many companies charge a monthly fee that includes a deductible amount you must pay before they help fix any issues with your appliances. Keep in mind that warranties only last for a year before it’s time to renew them. Additionally, there is usually an administrative fee associated with filing claims against your warranty company if something goes wrong with one of your appliances.

Home warranties can vary significantly in price depending on which company you buy them from and how complete the coverage will be when to the cost of repairs for all covered appliances. Remember that the price you pay for a home warranty is only a fraction of what you would have to pay if something significant were to go wrong with any of your appliances and the repairs were not covered by your warranty.

3. Cancelling or Extending Your Home Warranty

Most companies will allow you to cancel your policy as long as you do it within ten days of signing the contract. It’s important to know this because some people misunderstand their contracts and believe they are obligated to keep coverage on their homes even after the initial year has been completed. In addition, some warranties can be extended beyond one year, but those types of policies tend to cost significantly more than an annual policy does.

Cancelling or Extending Your Home Warranty

It’s important to review all parts of your contract before using it, as well as read through any additional terms and conditions you might have received when signing up for a home warranty cover. This will help ensure that you fully understand what is included in your contract and how to use it.

4. How Home Warranties Work

Home warranty companies typically have a network of authorized technicians that you can call for appliance repairs. They schedule the service and then send one of their contracted technicians to your home to complete the repair. The company may require you to pay a deductible. However, it will probably not cover the cost of parts, so make sure you understand how much money you’ll be responsible for paying when calling for repairs under your warranty.

There will usually be a deductible when working with a home warranty, and your company typically pays for parts and labor when replacing covered appliances. One of the most frustrating things about warranties is when they give you unanticipated expenses. But there are steps you can take to keep your warranty company from nickel-and-diming you on repairs. For example, if an appliance breaks down six months after the warranty expires, the company is not obligated to cover it.

A home warranty is a great way to protect your home against significant appliances breaking down unexpectedly. If you purchase one, make sure that it offers adequate coverage for what you need and cancel the policy if they try to sneak in any exclusions or limitations on their promises. It’s important to note that some companies will not allow you to cancel your policy within ten days of signing the contract, so be mindful of this when considering which company you want to work with.

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