What is Home Warranty?
The home warranty plan is to cover all home appliances such as refrigerators, gas, washing machines, home appliances, etc. It can also provide coverage of all parts and components of your home's electrical, plumbing, heating, and air conditioning systems.
The difference between Home warranties and Home insurance is that Home warranties are for protecting home appliances and systems against damage and breakdown, while Home insurance is for the structure of the house and protects your home from unexpected damages such as fire and weather damage. This means that if, for example, your washing machine breaks down, it won't help.
Home warranty contracts typically last for one year with the option to renew each year. Home warranty costs can vary, but they generally start at a few hundred dollars annually.
Most home warranty companies offer various levels of service contracts, and prices are proportionate to the levels of coverage. Before signing a service contract, make sure you read it carefully and review the terms of the warranty.