What is a Home Warranty?
A home warranty is a contract between a homeowner and a home warranty company that covers the repair, maintenance and replacement of home systems and appliances. These contracts typically last for a set amount of time and are renewed at the end of each contract. During the term of the contract, the homeowner pays a premium. In the event that service is needed, the homeowner only needs to pay a service fee to have someone come and verify the condition of the home system or appliance.
Home warranties are highly recommended for first-time homeowners. This is because new homeowners often underestimate the actual cost of home ownership, which includes far more than just your mortgage.
These warranties can help you if you have an older home that doesn't have an accurate log of all services performed on the home systems. In these instances it can be difficult to determine how close those systems are to wearing out, which can be extremely costly if not covered by a home warranty.
While home warranties can be incredibly beneficial to those who have them, a lot of people aren't fully aware of what they do or even how they differ from other services like homeowners insurance. To help you expand your understanding of what a home warranty is, this article explains the difference between home warranties and other services, how to shop for a home warranty and some of the key benefits of a warranty from American Home Protect:
Difference between a Home Warranty and Homeowners Insurance
How to Buy a Home Warranty
Why Choose American Home Protect Home Warranty?
Difference between a Home Warranty and Homeowners Insurance
Because of their similar names, people often mistake the services of a home warranty for those of homeowners insurance. This leaves many people wondering why they would even want a home warranty in the first place. The truth is that home warranties and homeowners insurance plans are actually quite different. Here's a quick look at the primary differences between these two important services.
How is a Home Warranty Different from Homeowners Insurance?
Put in the simplest terms, a home warranty covers repairs, replacement and maintenance of home systems and appliances like central air conditioning and refrigerators. Homeowners insurance covers significant damages to a home due to major events but not normal wear and tear.
Let's take a look at an example of how each works.
Imagine that you have a house in a state bordering the Gulf of Mexico, and a significant hurricane bears down on your town. During this hurricane, you remain safe but your roof is seriously damaged by the heavy winds. In this scenario, you should expect to have your homeowners insurance step in and assist with repair costs, not your home warranty.
Now let's imagine that you've purchased an older home where everything appeared to be in working order when you first arrived. As time goes on, some of the home systems begin to fail, starting with the central air conditioning, and you call your home insurance company only to find out they don't cover this type of event. In this case, depending on your coverage plan, you should expect that your home warranty company will assist you with the repair or replacement cost for your air conditioning.
What is Covered by a Home Warranty?
Home warranties cover a wide variety of home systems and appliances depending on the particular coverage plan that you choose. Some commonly covered items include refrigerators, spa equipment, plumbing, central air conditioning, washers, dryers and electrical systems. Typically, a home warranty will cover the repair or replacement of these systems and appliances provided they have been used correctly and are properly maintained.
What is Covered by Homeowners Insurance?
Homeowners insurance tends to cover losses due to what is called a "known peril." Known perils include major events such as some natural disasters, vandalism and theft. In certain cases, or in areas that are particularly high risk, home insurance companies may require you to purchase additional protection in order to be covered for floods, earthquakes and other acts of God.
How to Buy a Home Warranty
Getting a home warranty is a fairly simple process. In order to purchase one, you first need to identify the home warranty company that has the best plan based on your needs. We recommend exploring what each company offers in their coverage plans, learning how much their coverage plans cost per month and how long their coverage lasts.
Once you've taken a look at those factors and decided which home warranty company you would like to proceed with, you just need to go ahead and give them a call. If you're choosing between a few different companies, then it may be wise to ask each of the companies you're choosing between to provide you with a quote.
After receiving all the information you need, you should contact the company you've chosen. While speaking with them, make sure to ask any questions you have about coverage options, how coverage is determined, what their service fees are like and any other benefits that they offer. With all this information in hand, you're ready to pay your first premium and start getting your home covered!
Why Choose American Home Protect Home Warranty?
We know that you have a lot of options when it comes to purchasing home warranty coverage, and we strive to set ourselves apart through our robust coverage options and best-in-class service options.
With most home warranty companies, they make you use the technicians that they have. With American Home Protect, we allow you to choose your own technician. So if you have someone you like and trust we are happy to use them. However, if you don’t have a technician our team will step in and help you find one. In the event that something needs repair or replacement, we can get someone out to you quickly. This results in you getting faster service with a higher, more consistent level of quality.
Additionally, our coverage plan runs for three years, which is three times longer than most home warranty companies offer. This significantly reduces the chance of your policy lapsing, which in turn reduces the risk of something going wrong while you're uncovered.
If you've been looking to get a home warranty to better protect your home, then American Home Protect is here to help! We offer a robust set of coverages and handyman services that set us apart in the world of home warranties. Get a quote today to see how we can help you protect your biggest investment.
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