How Does a Home Warranty Work?How does a home warranty work? It’s one of the most commonly asked questions we receive, and the answer is simple. Home warranties protect you from sudden, out-of-pocket expenses when a major system breaks. While home insurance protects you in cases of theft, accidents, and natural disasters, it doesn’t cover damage from wear and tear. If your furnace or air conditioner malfunctions, the costs fall on you. But not if you’re protected by a home warranty.

How a Home Warranty Works

Home warranties are simple. You pay a monthly premium, the same as you would for car insurance. If something goes wrong, you call us. We maintain an extensive network of skilled technicians, carefully vetted to ensure quality service.

After you explain the problem, we dispatch one of them to diagnose and repair it. With most companies, you pay a small service fee, but with Homesential, you don’t pay anything. The cost of parts and labor are covered by your warranty.

Fortunately, even if your company charges a service fee, customers generally pay only once. In the event the problem requires a second or even a third visit, you pay nothing. The company covers the costs of the damaged parts. That’s how a home warranty works.

What a Warranty Covers

Home warranties don’t cover your home from top to bottom. Some cover your appliances (refrigerator, dishwasher, dryer, etc.), while others cover essential systems (furnace, air conditioner, wiring). A few cover both.

However, a warranty doesn’t pay for everything, only critical components, such as fan belts, compressors, or ignition cables. Ancillary systems may not be covered either, even if they’re connected to a system that is. For example, if your warranty covers your cooling system, it does not automatically cover your air ducts, unless explicitly stated in the agreement.

Homeowners aren’t stuck purchasing blanket warranties though. Coverage can be customized. If you want to protect your furnace, but think your air conditioner is just fine, you don’t have to include it in your plan. One thing to keep in mind though, bundling coverage not only provides better protection, it saves money in the long run.

Another thing to remember; not every problem you encounter is necessarily covered by a home warranty. Home warranties typically exclude:

  • Misuse
  • Pre-Existing Conditions
  • Cosmetic Damage
  • Damage Caused by Improper Installation or Maintenance

Choosing the Right Warranty Plan

Home warranties are not one size fits all. Before purchasing one, take a moment to consider all the relevant factors, to ensure you choose the best plan for your needs.

  • Systems and Appliances Covered. Always read through the fine print to see what is or is not covered by your warranty. While not every homeowner needs a fully comprehensive plan, make sure your most important systems are covered.
  • Cost of Plans. Warranties aren’t expensive. At the cost of one cup of coffee a day, you can protect almost everything in your home. However, if you’re working with a tight budget, even small expenses are important. That’s why bundling coverage is so helpful. It lowers the cost of each plan you purchase.
  • Customer Service. When something goes wrong, you need to trust your warranty company will be able to handle it quickly. Read their reviews. What customers say will tell you whether you can rely on them if your systems malfunction.
  • Coverage Caps. Some warranties have a limit. Once your claim reaches a certain amount, the company stops paying and the rest comes out of your pocket. However, coverage caps aren’t bad. Some are so high customers are unlikely to pay anything except in extreme cases. And a low cap generally means lower premiums as well. Just make sure to consider what you can afford before signing up.

Homesential Warranties

While other warranties cover standard household appliances, Homesential covers your home’s essential systems: heating, cooling, and wiring. And, unlike our competitors, we don’t charge a service fee or deductible. You pay only a monthly premium. We handle the rest. We even save you the trouble of finding reputable technicians in your area. Our team screens local repairmen and works with only skilled professionals, who we send to repair your home.

Remember, no matter how well you take care of them, all your systems are subject to wear and tear. Furnace, air conditioner, wiring ‒ everything breaks down eventually, so make sure you’re protected when it does. 

Repairing them can cost thousands of dollars, but with Homesential, your costs are equivalent to a cup of coffee a day. Don’t get stuck paying out of pocket. Sign up now!