A home warranty is very different than a homeowner’s insurance. While homeowner’s insurance covers damage to your home, a home warranty will cover the appliances and systems in your home, including but not limited to your refrigerator, oven, garbage disposal, microwave, dishwasher, water heater, furnace, A/C, plumbing, sewer line, pool.
There are various plans and options to choose from depending on what you are looking to get covered. Often times, the cost of replacement your appliance or system is higher than the yearly cost of maintaining a home warranty. Your decision may also depend on whether all your appliances and systems are new and still under manufacturer warranty.
There is typically a service call fee each time you submit a claim for someone to come out and look at your defective item, and it can range anywhere from $60-75/call depending again on which home warranty company you choose.
This table extracted from Home Warranty of America‘s brochure shows the cost of replacement of common items:
There are many home warranty providers to choose from, and it’s a good idea to compare your options to see what makes most sense to you.
I’m always happy to help if you have any questions or need a recommendation!