What Is a Home Warranty? Unlike homeowners insurance, a home warranty is a service contract that covers repairs or replacements for home systems or appliances that are damaged from everyday wear and tear. If your dishwasher breaks or your hot water heater stops working, a home warranty can save you money on repairs – and a lot of hassle.
Typically, home warranty plans are offered to the home-buyer when they are purchasing a new home. However, if the buyer decides not to purchase home warranty insurance simultaneously with their home purchase, then they can secure a home protection plan at a later date.
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If an issue arises within the life of the warranty related to the workmanship, you can rest easy knowing you’re covered.
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Home warranty insurance is designed to cover what your homeowners insurance won’t cover when they deny your claim, covering a number of appliances, but do you need warranty insurance is a whole other question.
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A homeowners home warranty is a contract covering repairs and replacements on systems and appliances in your home, usually for a period of one year. Homeowners warranties are designed to protect your home’s appliances and systems from breakdowns caused by normal wear and tear.
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Having home warranty coverage and homeowners insurance is the best way to fully protect your home against the unexpected, but a home warranty gives you more value year to year because of the service it provides. Homeowners with First American coverage sometimes request service for failing systems or appliances multiple times in one year alone.
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A home warranty is an optional service plan that covers home systems (like electrical, plumbing, heating, and cooling), as well as appliances (like refrigerators, dishwashers, and washing machines) for a specified amount of time, usually one year. In other words, a home warranty protects the parts of a house that make it a home.