FAQs
What is a
Home Warranty Contract?
A home warranty contract covers
major appliances and systems which are in the proper
operating condition. It is an agreement on the part of the
issuer (the home warranty company) to repair or replace
certain name components or systems within a home that fail
due to normal wear and tear during the contract term.
Is
a Home Warranty Contract an Insurance Policy?
NO. Perhaps the best way to draw
distinctions is to compare the most common insurance policy
written on a house with the home warranty contract. The
homeowner's policy covers fire, lightning, windstorm,
hurricane, hail, explosions, riot, civil commotion,
vandalism, and malicious mischief to the entire dwelling and
its contents. It specifically excludes inevitable loss due
to “mechanical failure” or “normal wear and tear.” A home
warranty contract, on the other hand, covers the inevitable
perils of mechanical failures and wear and tear.
What does a Home Warranty
Contract Cover?
Most home warranty contracts
include repair and replacement coverage for built-in
appliances, air conditioning and heating systems,
electrical systems, water heaters and plumbing,
depending on the contract. Optional coverage is usually
available for swimming pools and spas, clothes washers
and dryers.
Will a Home Warranty cover
pre-existing conditions?
NO. Home warranty contracts
exclude pre-existing problems, and purchasers who try to
get pre-existing problems corrected will always end up
dissatisfied