Real Estate

What is Home Warranty Insurance and Its Benefits

Home warranty insurance is a type of coverage for your home that can help you out if there is a problem with your house. However, you may not be covered for some things. For example, you may only be covered if you have properly maintained your home. You will also need to pay a hefty price for this coverage.


Colorado home warranty insurance costs vary significantly from one company to the next. A typical plan may cost anywhere from $75 to $900 annually. However, this amount can easily exceed $1,800 if you purchase add-ons. These add-ons include appliance coverage, plumbing, and electrical components.

When it comes to the costs of a warranty, you first need to consider what types of systems you want to cover. For example, you may purchase a contract with an air conditioning system or a swimming pool. You also want to pay attention to the age of your home and appliances. If you live in an older home, you can take advantage of incentives to lower the warranty costs.

Another factor that affects home warranty costs is the level of service you’re willing to pay. For instance, a basic protection plan may cover significant plumbing repairs, while a multi-year plan might include all your kitchen and laundry appliances.

There are also service call fees. At the low end, you can expect to pay between $50 and $100 for a professional to come to your home to fix your systems. But at the high end, you can pay a whopping $125 to get a technician to visit your house.

Other factors that influence the price of a home warranty are the age of your home, the number of appliances in your home, and the service fees. Most companies offer two or three plans. Some are self-underwritten, and an insurance company underwrites others.

It’s essential to read the fine print of your contract, as some companies have more expensive premiums than others. For example, First American Home Warranty offers affordable coverage but leaves out essential appliances.

One of the most common home warranty packages covers a basic whole-home system, usually the HVAC system, water heaters, and plumbing. This coverage includes the associated ductwork and smoke detectors.

Many leading home warranty companies offer an extensive line of optional add-ons. These can add up to an extra $150 or more per month.

Coverage provided

Home warranty insurance covers systems and appliances, including heating and cooling, kitchen, and other major home systems. Most companies provide different plans and pricing options. The home warranty policy includes the service fee, monthly premium, deductible, and additional costs.

A home warranty provides peace of mind and protection against costly repairs. However, like any other type of coverage, it’s essential to understand what’s covered and what’s not.

The most comprehensive home warranty policies usually cover all major home systems. These systems may include the electrical, HVAC, heating and cooling, and plumbing. It’s typical for home warranties also to have limited roof and pest control coverage. Some providers even offer add-ons to increase their range. Common add-ons include additional electronic devices, septic tank pumping, and swimming pool equipment.

Many other systems, such as a dishwasher, washing machine, or dryer, may be covered under a home warranty. However, depending on the selected provider and plan, some appliances may need to be covered.

The best way to determine which items are covered under a home warranty is to read the contract carefully. Sometimes, you will see language that could be clearer and clearer. If you need help understanding the wording, consider calling customer service to ask questions.

Most providers allow you to add more coverage for specific items. Common add-ons may include septic tank pumping, food spoilage, and roof leaks. Pay a small service fee per issue, ranging from $75 to $125.

For most homeowners, a home warranty is a good investment. However, it’s only sometimes worth the price. In addition to providing coverage, it also reduces the emergency fund expenses you’d otherwise have to pay out of pocket.

If you’re considering purchasing a home warranty, research the plan, find a provider, and read the documents thoroughly. You may be surprised by the options available. Also, be aware that some coverage may not be worth it, especially if you don’t have a high-priced home.

Coverage that may not be covered by homeowners insurance

While homeowners insurance is an excellent way to protect your home from the unexpected, it’s essential to check and understand the coverage offered. You may need to buy an additional policy or use a rider to ensure you get the protection you need.

Homeowner’s insurance policies offer coverage against specific perils, such as fire or storm damage. But, they don’t always cover liability for hazardous items. If you own things that could harm a visitor, you must find a policy covering these risks.

Standard homeowners insurance doesn’t cover damage due to termites, pests, or other animals. They also don’t cover water damage from sewer backups or sump pumps. Termites and insect damage are often prevented with proper home maintenance.

Homeowner’s insurance doesn’t always cover theft but can cover the cost of replacing stolen items. Also, some policies may not cover losses caused by earthquakes.

In addition, your standard homeowners’ insurance usually covers something other than the difference between older and new electrical wiring. It can be a significant determining factor regarding your insurance rates.

Other things that should be covered include damage from neglect. Even if your home has a clean bill of health, it’s a good idea to update your policy or ask your insurer for additional protection.

Another thing to consider is the building codes in your area. Currently, some cities have stricter requirements for materials used on buildings. These can result in higher costs when rebuilding or repairing. Unless you have a policy with a special endorsement or rider, you will only be protected if your home meets the codes.

As you can see, there’s a lot to think about. Take the time to read your policy carefully and talk to your friends and family about their experiences. Keeping the right coverage for your needs can help you avoid expensive repairs.

It’s also worth checking and comparing offers from several insurance companies. The best time to do this is after buying a house. After that, a combination of insurance and a warranty can provide a great deal of financial protection.

Coverage that won’t cover items that haven’t been adequately maintained

Home warranty insurance is a type of service contract that covers certain appliances and systems in your home. This coverage will pay for repairing or replacing the apparatus or method when it breaks down. The range usually includes normal wear and tear, but it doesn’t cover repairing or replacing items that need to be adequately maintained or used.

Before you purchase a home warranty, you’ll want to understand how the policy works. You must call the warranty company when the covered system stops working. They will send a technician to your home to investigate the problem and determine the cost of fixing the appliance or system. You will be responsible for the remainder of the repair cost exceeding the policy limits.

Most home warranty policies also include a maintenance plan, which means you’ll need to perform routine maintenance on the covered item. Your warranty will not cover mechanical, electrical, or damage from floods or accidents.

Some companies also provide endorsements that increase your home warranty coverage. These endorsements may include electrical, mechanical, and utility line damage. A high-end stainless steel appliance is often excluded from home warranty coverage because of its replacement cost—however, add-on options, such as well pumps and solar panels.

In addition to covering your major home appliances and systems, a home warranty may cover items like an air conditioning unit, a freezer, or a water heater. It may also substitute a burst pipe. Although these are essential home systems, they aren’t always included in every home warranty policy.

Depending on your policy, you will need to pay a service fee for the technician. You can expect this to range from $50 to $125. When a professional comes to your home, you’ll need to provide them with your service records, including professional repairs or maintenance.

Most warranty providers have preferred contact methods, which include a web form or phone number. Many also require you to file a claim within a specified period.