The home warranty covers the cost of repairs and replacements for certain appliances and systems in your home caused by daily wear and tear or old age. The home warranty covers a home's systems and appliances that don't work due to normal wear and tear. Systems and appliances have a lifespan: unfortunately, they break down, wear out and stop working. They won't last forever, and there's a home warranty to help reduce the cost of paying for a new system or appliance when it breaks down due to old age (normal wear and tear).
Make it clear that a home warranty covers home systems and appliances that don't work due to normal wear and tear. You buy home insurance to protect your biggest investment against damages that are beyond your control. In most cases, this involves emergencies or acts of nature, forces that cannot be controlled. What can you control? How you maintain your own home.
This is why homeowners insurance is unlikely to cover claims you file that are due to wear and tear. While a home warranty plan can help pay for the repair or replacement of a specific system or appliance, the warranty doesn't necessarily cover everything that could go wrong with that item. In some situations, a seller will purchase a real estate home warranty plan for the buyer of their home, or in some cases, real estate professionals will give away one year of home warranty plan coverage to their customers. The source of the problem, if it comes from a system or appliance covered by your home warranty, will be repaired or replaced by the warranty.
Warranties do not cover damage, and self-made repairs or lack of roof maintenance may void the warranty. Unlike homeowners insurance, which protects your home in the event of hazardous events, a home warranty protects your systems and appliances when they break or fail due to normal wear and tear. A refrigerator with an electrical short circuit would normally be a call to the home warranty service (if you've included that basement refrigerator in your policy). However, you might be surprised to learn what a typical home warranty actually covers and what doesn't.
While you may choose to forgo buying a home warranty if you have savings to cover costly and unexpected breakdowns to your home's systems and appliances, these contracts can save you time and money when an item needs to be repaired or replaced. If you can't pay that cost in full, a home warranty plan can ease some of that financial burden. The home warranty is designed to cover items that become unusable due to normal use and use (including rust, corrosion, and the buildup of chemicals or sediments). This is because a home warranty is only intended to cover typical system and appliance faults that occur over time (remember, wear and tear).
For example, your plan contract may cover leaks in pipes, but blockages caused by roots located outside the house structure can be excluded. From pipes to ceiling fans, the home warranty covers parts of up to 23 systems and appliances in your home. What your home warranty will do, in most cases, is pay for repairs or replacement of the covered appliance or system that caused the water leak. While home warranties cover most systems and appliances, they sometimes have limits and exclusions on certain items.