Home Warranty: Policy, Benefits and Coverage

Home Warranty: Policy, Benefits and Coverage

Repairs are an inevitable part of living in a home, regardless if you own or rent one. Appliances break, faucets leak and HVAC units can stall in the middle of a heatwave. Rather than depleting their savings for these repairs, some people purchase home warranties to alleviate the cost of common home repairs.

What is a Home Warranty?

Home warranties are service contracts that cover repairs and replacements for home systems and appliances. Homeowners can purchase a warranty from companies such as American Home Warranties to protect against unexpected repair costs. Home warranty companies offer different types of coverage for different systems and appliances in a home. Home warranties usually will only cover up to a certain amount, so it’s important to read through the details of each plan before signing an agreement with a home warranty company.


What are the Benefits of a Home Warranty?

  1. The primary benefit of home warranties is that they cover the costs of repairs and replacements for systems and appliances. Homeowners don’t have to worry about draining their savings account when a refrigerator stops working or when the air conditioner needs to be replaced. Home warranty companies can send out qualified technicians quickly to get your system up and running again. Home warranties can provide peace of mind by protecting your home from common repairs and replacements.
  2. Home warranties also save time because the homeowner doesn’t need to shop around for different contractors and compare estimates. Home warranty companies have their own network of qualified technicians to help with any repairs or replacements that are covered under the plan. Homeowners can simply call their home warranty company and have a technician sent out to handle the repair or replacement.
  3. Home warranties also provide convenience since most of them offer customer service 24/7 for emergency repairs or replacements. By investing in a home warranty, homeowners are able to save money on common repairs and replacements while having the peace of mind that they are covered if something unexpected happens.

How Much Does a Home Warranty Cost?

The cost of a home warranty varies, depending on the provider and type of coverage. Home warranties can be higher or lower depending on the services offered. Homeowners should make sure that they read through all the details of their coverage before signing an agreement with a home warranty company. A home warranty costs several hundred dollars a year, paid up-front (or in installments, if the warranty company offers a payment plan). The plan’s cost varies depending on the property type—single-family detached, condo, townhouse, or duplex—and whether the homeowner purchases a basic or an extended plan.

The cost usually does not vary with the property’s age, unless the home is brand new, which increases the cost of coverage. The home’s square footage also does not affect the price in most cases, unless the property is more than 5,000 square feet. Separate structures, such as guest houses, usually are not covered by the basic policy but can be covered for an additional fee. However, garages should be included as a standard feature of a warranty.


Coverage of a Home Warranty Policy

The scope of the coverage will depend on the home warranty company and policy. Home warranties usually provide coverage for major systems, such as air conditioning, heating, plumbing, and electrical systems. Home warranties also typically cover built-in appliances like dishwashers, ovens, refrigerators, and garbage disposals. Homeowners should read through their specific policies to understand the exact extent of what is covered. Home warranty companies usually have different levels of coverage, so homeowners should make sure they read through all the details before signing an agreement with a home warranty company.

In addition to systems and appliances, some plans may offer additional coverage for items such as pools, hot tubs, and septic systems. Homeowners should carefully review the coverage options offered by American Home Warranty or other home warranty companies to ensure that their home is adequately protected. Home warranty plans are an excellent way for homeowners to save money on common repairs and replacements while having the peace of mind of knowing they are covered if something unexpected happens.


Home warranties are an important consideration for any homeowner. Homeowners should consider the cost, coverage, and services offered by American Home Warranty or other home warranty companies to find the plan that best fits their needs. Home warranties offer peace of mind knowing that you’re covered in case something unexpected happens with your home systems and appliances. Make sure to do your own research about home warranties.


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  2. “Solved! Do I Need a Home Warranty? Retrieved December 28,2022 from: https://www.bobvila.com/articles/do-i-need-a-home-warranty/
  3. “Why You Need a Home Warranty and Homeowners Insurance” Retrieved December 28,2022 from: https://www.ahs.com/home-matters/repair-maintenance/why-you-need-a-home-warranty-and-homeowners-insurance/
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