Top Questions About Residential Warranty Protection Plans
Learn about residential warranty plans, including their differences from homeowners' insurance, how they operate, and what coverages they offer. Protect your home appliances and systems with the right warranty plan to avoid costly repairs and replacements, ensuring peace of mind for homeowners. Compare options and understand coverage tiers to make informed decisions.
Here are key insights to help you understand residential warranty plans better.
How does a warranty plan differ from homeowners’ insurance?
Homeowners’ insurance covers damages from specific risks such as wind, fire, theft, or hail, and extends to some water damage. However, it doesn’t usually cover repairs to appliances or home systems unless caused directly by covered perils. Conversely, warranty plans serve as service contracts that pay for repairs or replacements of covered appliances and essential systems, like heating or plumbing, when they fail.
Annual costs typically range from $250 to $500, but more comprehensive plans can reach around $1,000 based on coverage options.
How Do Residential Warranty Protection Plans Operate?
Similar to product warranties, these plans involve paying an annual fee that entitles you to repairs or replacements of specific home components. When a covered issue occurs, the warranty provider dispatches a technician to handle repairs, with costs covered by the plan. The homeowner pays the service fee outlined in the contract.
What Are Common Coverages in Warranty Plans?
Coverage levels vary, but typical inclusions are:
Basic plans often cover plumbing, dishwashers, ovens, garbage disposals, fans, sump pumps, water heaters, microwaves, tubs, and electrical or heating systems.
Enhanced plans may include central air conditioning, washers, dryers, refrigerators, and garage door openers, with additional charges.
Optional coverage can extend to well pumps, pools, spas, freezers, septic systems, and central vacuums.
Before choosing a warranty plan, compare providers and coverage options to find the best fit for your home needs.
