Home Insurance Home Warranty Plans

[Adrian Nichola]

A home warranty usually covers major appliances and mechanical systems in pre-owned and new homes. Most companies provide three kinds of warranty plans, which are: New appliances plans (including dishwashers and refrigerators), brand new systems, and refurbished systems. Depending on the plan selected, some or all of the following may be covered: central air conditioning units and ductwork, central heating and air conditioning units and ductwork, electrical wiring and components, heating systems and appliances, electrical motors, gas furnaces, kitchen appliances, interior lighting, plumbing systems, central cooling and fans, outside wall, exterior wall, and septic tank systems. New construction warranties do not typically cover these systems.

Although home warranty plans are designed to provide coverage for most of the major repairs and replacements within a home, certain repairs and/or replacements may not be covered by the warranty. Essential systems that cannot be replaced under a warranty, such as plumbing pipes, central air conditioning units, gas furnaces, kitchen appliances, and exterior wall, are usually excluded from most warranty plans. Essential system coverage is usually the most expensive type of home warranty coverage, but it provides the most extensive repair and replacement options. Therefore, it is usually purchased by the most financially vulnerable household members.

Many home warranty plans provide extended coverage for some items or parts of a household. These include appliances, ceiling fans, heaters, electrical furnaces, home gyms, outdoor benches, garage kits, water heaters, personal water heaters, outdoor patio heaters, pool cleaners, washers, dryers, dishwashers, computers, televisions, furniture, and stereo equipment. Certain parts, such as ceiling fans and some refrigerators, will generally have limited or no coverage under home warranty plans. For all other parts or items, the plans generally require at least a one-year coverage commitment. Most home warranty companies require at least two years' coverage commitment for most major appliances or parts.​

 

[Setho]

This has actually been one of the most entry-level and oldest forms of insurance. With a market that is full of competition and risk for people selling fake products this has brought about why people normally bring warranty insurance is into every purchase and also the ability to return the product back.

 

[btaliat]

I don't think this insurance policy should be expensive based on the fact that most things I think it should cover, it doesnt cover them. I don't know why pipes which are essential and are even prone to wear and tear should not be covered. Anyway, it is a nice insurance policy.

 

[Mika]

I have checked with some major insurance companies in my home country and not all of these companies I checked offer this kind of insurance plan. I guess, this is already covered on the home insurance you have bought. If there are some damages due to short circuits etc. your home insurance will cover the loss.