Reviewing How Home Warranties Work

Homeowners review the terms of a home warranty and determine if it provides the right coverage. According to studies, home warranties offer help with repairs and replacement services if installations inside the home become faulty. The terms of the warranty determine how much the homeowner will pay if these installations require repairs or replacements. It is a great choice for lowering the overall cost of the services. The homeowner gets coverage by purchasing the home warranty through a home warranty company. Reviewing how the home warranty works helps the homeowners made a final decision about these options.

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Assessing What is Covered and What Isn’t

When reviewing a home warranty, it is important for the homeowner to review all items that are listed in the warranty. For example, the warranties cover the major appliances installed in the property, such as washing machines, stoves, ovens, and countertop ranges. Each of the installations is covered by the home warranty, and the homeowner can file a claim to get coverage if the items become damaged or fail to work. Homeowners can learn more about the warranties if they check out 2-10 Home Buyers Warranty right now.

What Limitations are Possible with a Home Warranty?

High-valued items that exceed the maximum coverage level for the home warranty will not be covered fully by the home warranty. It is imperative for the homeowner to review the terms of the home warranty to determine the maximum coverage level for each item or installation on the property.

Why Should the Homeowner Get Riders?

Riders are additions to the homeowner’s insurance policy that covers the items according to their appraised value. If the item is lost, stolen, or damaged, the rider provides funds to repair or replace the item completely. The home warranty will not provide the full price of the items. It is used to give the homeowner discounts and better rates for repairs or replacement. Any items that could present the homeowner with a financial hardship if they have to replace it should be covered under a rider, too. This gives the homeowner maximum coverage for these items.

How Does the Home Warranty Compare to a Homeowner’s Policy?

A homeowner’s insurance policy provides coverage for the entire property, but it doesn’t present the homeowner with coverage for all appliances in the property. The homeowner receives coverage through their homeowner’s insurance policy to repair or replace the property. When it comes to appliances, the homeowner has limited coverage.


The home warranty provides coverage for the appliances and gives the homeowner discounts on repairs or the replacement of the appliances. It makes it more affordable for the homeowner to get the appliances repaired instead of buying a new product. Homeowners could save considerably for the repairs if they have a home warranty.

Comparing the Cost of the Warranty to Common Household Repairs

A homeowner can decide if they want to purchase a home warranty by comparing the annual cost of the home warranty to common repair costs for appliances and major installations inside or around the property. The purpose of the home warranty gives the homeowner discounts on repairs for the items included in the warranty. It could make it possible for the homeowner to manage the cost of the repairs or purchasing a new appliance when needed. Reviewing the cost of common expenses shows the property owner how much they could save by purchasing the warranty.

How Does the Homeowner Process a Claim?

When the homeowner needs to complete a claim through the warranty, they contact the warranty company and complete forms as needed. The warranty company sends a repair service provider to assess the item that is damaged or failing to work. The service provider reports back to the warranty company, and the homeowner is provided a price for the cost of the repairs. Typically, the service provider completes the services when visiting the home. The homeowner sends additional payments to the warranty company according to the cost of the services or replacement.

Are All Home Warranties Transferable?

The homeowner can transfer their home warranty whenever they move to a new home. The same coverage level applies to items inside the new property, and the homeowner pays an annual fee according to the age and size of the new property. The home warranty company provides the homeowner with an estimate for the cost of the home warranty. The homeowner has the same option to paying the fees all upfront or in installments. The documentation for the warranty will reflect the changes, and the homeowner can use the warranty after the transfer is completed.

Should the Homeowner Cancel Their Homeowner’s Insurance If They Have a Warranty?

No, the homeowner shouldn’t cancel their homeowner’s insurance policy even if they have paid off their mortgage. The coverage is not the same as a home warranty, and the homeowner will need the homeowner’s coverage if their home is damaged or a total loss. The homeowner’s insurance provides funds to replace items inside the home that are listed in the property or covered by a rider. However, to get coverage, the items must be damaged by a covered event.


With a home warranty will not provide the same coverage as the homeowner’s insurance, but it can give the homeowner help when installations or appliances must be repaired. Reviewing how the warranties work shows the homeowner how to manage their repair and replacement needs.

Homeowners compare homeowner’s insurance and home warranties. Each of these options provides coverage for the home or items in the home. The homeowner’s insurance provides coverage for the property and items inside the home if the damage happens because of a fire, natural disaster, or water leak. It will provide limited coverage for items inside the home such as electronics, appliances, and furniture. The home warranty is not the same as a homeowner’s insurance policy, and it provides help with replacements and repairs for major appliances and vital installation in the home such as the electrical system. Reviewing each of these options shows the homeowner how to protect their home and assets effectively.

Interesting Related Article: “A Guide to Homeowners Insurance