Home warranty protection

Home warranty plan terminology

Manufacturer
The company that makes a system or appliance

Major system
Mechanical equipment or a network of pipes that are essential to a home’s ventilation, heating, cooling or plumbing functions

Service provider
A tradesperson or contractor who repairs or replaces systems or appliances

Home Warranty Plan: Protection That May Pay For Itself

A home warranty plan can help you manage the costs of unexpected appliance and major system repairs. A home warranty plan is a contract with a service provider that covers the repair or replacement cost of your home’s appliances and major systems. Depending on the level of coverage you purchase, a home warranty plan may pay to repair or replace your appliance or system — regardless of its age or the length of time you’ve owned it.

Individual home warranty plans vary; however, most generally cover these household appliances and systems:

  • Heating
  • Plumbing
  • Electrical
  • Duct work
  • Range
  • Trash compactor
  • Dishwasher
  • Garbage disposal
  • Ceiling and exhaust fans
  • Jetted bath tub
  • Sump pump
  • Water heater
  • Toilet tank and bowl

Plus, you may also be able to buy additional protection for your:

  • Central air conditioning system
  • Refrigerator
  • Garage door opener
  • Built-in pool or spa
  • Well pump

Offset the Cost of Repairs

While having a home warranty plan is not legally required, it can be a very good idea because your homeowners insurance policy will generally not cover the repair or replacement of your home’s systems or appliances due to normal use. And while a manufacturer’s warranty may be included with the purchase of an appliance or major system (such as ductwork), that warranty will eventually expire — leaving you with the costly burden of repairs.

Another benefit of a home warranty plan? Curb appeal! If you are trying to sell your home, including a home warranty plan in your home’s purchase price can give you an advantage over other sellers in your area.

Whether you want to manage the costs of unexpected appliance and major system repairs or simply want to make your home more attractive to potential buyers, a home warranty plan provides peace of mind.

The information contained herein is being provided as-is and without representation or warranty. The enclosed information is not intended as legal, tax or financial planning advice. Any discussion of tax or accounting matters herein (including any attachments) should not and may not be relied on by any recipient or reader. The recipient/reader should consult his/her tax adviser, legal consultant and/or accountant for a statement of tax and accounting rules applicable to his/her particular situation and for all other tax and accounting advice.