A home warranty is a type of insurance policy that helps cover the repair or replacement of major home systems, as well as appliances, when they break down due to normal wear and tear. Home warranties are generally offered as an annual contract, and they do not cover damage due to natural disasters or acts of God.

For many homeowners, a home warranty is a great way to reduce their financial risk. It provides extra protection in case something goes wrong with a covered system or appliance in the home. Unlike homeowner’s insurance, which typically covers the structure of the home, a home warranty provides peace of mind in the event of expensive repairs or replacements due to normal use.

When someone purchases a home warranty policy, there is usually a service fee that must be paid along with the policy fee. This fee covers the cost of a technician to visit the home and diagnose any problems that may exist with covered items. After the service fee is paid, the homeowner may then be eligible to receive coverage for repairs or replacements of those items.

When a homeowner’s system or appliance needs repairs or replacement, they contact the home warranty company who then dispatches a technician to make the necessary repairs or replacements. It is important to note that the repairs or replacements are only covered up to the limits specified in the warranty. Therefore, it is important to read the policy carefully to make sure it covers what you need.

Home warranties can be a great way to protect your home and appliances, especially if you are a first-time homeowner. They provide coverage for systems and appliances that may be too expensive to repair or replace out of pocket. Additionally, they provide peace of mind that something won't go wrong and you won't be left with a large repair bill.

Whether you are a first-time homeowner or an experienced one, a home warranty is an important part of protecting your investment. It can help prevent out-of-pocket expenses for repairs and replacements and provide an extra layer of protection for your home.