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Home Warranty News & Articles

The ABC of Home Protection Plan

July 3, 2021

Now that you finally have your own home, you should not immediately relax as there are still some other things you need to take care of, like house maintenance. There's always a possibility that one or more of your appliances or home systems break or malfunction. For this reason, it's advisable to have a home warranty plan to keep your mind at ease, especially if you're a first-time home buyer who doesn't know much about maintaining a home.

Home protection plans, also referred to as home warranties, are reasonably priced. Generally, they range from $250 up to $400, depending on the type of coverage. These are paid early, about a year advance, wherein they get expired or renewed. There are some companies that run special sales and give added coverage or discounts.

A home protection coverage may be financed either by the buyer or the seller, but most of the time, the latter sponsors such warranty since it may also be beneficial for him/her; if the seller pays for the coverage, the buyer would not bother him/her by calling after the deal has been closed if something needs to be fixed. There are some instances in which the real estate agent pays for the home protection plan to give it as a present to the buyer.

Even though there's a particular home protection plan that gives a particular coverage, most of these have the same process of how they work. For example, if one of your appliances or home systems starts to malfunction, you just contact the company and then they call their service provider, which has an arrangement with them in terms of business. The provider, then, calls you to arrange an appointment to have the broken appliance fixed. In the event that it cannot be repaired, the company will pay to have it replaced and installed, depending on your coverage plan. Afterwards, you pay a small amount of trade service fee of not more than $100.

A home protection plan has a lot of different types so it's best to ask the coverage of each type and find out if it can be upgraded. Focus on whether the home warranty company pays for the repairs to make a certain type of system or appliance compliant with regulations.

In general, the coverage of a home protection plan includes the following:

  • Oven and range
  • Telephone wiring
  • Ceiling fans
  • Electrical systems
  • Garbage disposal
  • Internal plumbing stoppages
  • Water heater
  • Ductwork
  • Doorbells
  • Heating system or furnace
  • Air conditioning
  • Dishwashers

There are items in the house that are not included in a home warranty. Some of these include, but are not limited to, the following:

  • Permit fees
  • Haul aways
  • Certain home protection plans do not pay for dryers, washers, garage door openers, or refrigerators
  • Pools or spa (unless they are requested to be included in the coverage)
  • Outdoor items (for example, sprinklers)
  • Some plans do not cover faucet repairs

There are cases wherein a home warranty company refuses to pay for the coverage plan. These may be caused by any one of the following:

  • Strange wear and tear
  • Incorrect installation
  • Inadequate maintenance
  • Violation of code

Even after you've purchased your new house, you may still inquire about these home protection plans online.