If you’re like most homeowners, you probably don’t give much thought to home repair insurance until something goes wrong. And when something does go wrong, it’s usually a big expense. That’s where home repair insurance comes in – it can help cover the cost of repairing or replacing many of the things that can go wrong in your home. But what exactly does home repair insurance cover? And how does it work?
In this article, we’ll answer those questions and more. We’ll also explain the difference between a home repair warranty and a typical homeowner insurance policy. So read on to learn more about home repair insurance and see if it’s right for you!
What Exactly Is Home Repair Insurance?
Home repair insurance, also known as a home warranty, is a type of insurance that helps cover the cost of repairing or replacing major appliances and systems in your home. Most home warranties cover items like your HVAC system, water heater, plumbing, electrical system, and more. Some home warranties even cover things like your pool, spa, or even some roof leaks.
In general, you will have access to two types of home repairs. These include:
- Appliances: Most home warranties will cover your major appliances. This includes items like your refrigerator, oven, dishwasher, and more.
- Systems: In addition to appliances, most home warranties will also cover systems in your home. This can include your HVAC system, water heater, plumbing, electrical system, and more.
Most house insurance providers give a basic plan that covers both appliances and systems. Some firms also provide an enhanced or premium warranty package that includes additional items, such as your swimming pool, sewage system, well, or entertainment system.
A home warranty is an annual service agreement that covers major house systems and appliances, such as air conditioning or a refrigerator, that have broken down as a result of normal use. This sort of appliance insurance helps consumers alleviate their worry by ensuring that they won’t be responsible for paying out-of-pocket if something goes wrong.
Home Repair Insurance vs Homeowners Insurance
Now that we’ve answered the question, “What is home repair insurance?” It’s time to talk about how it differs from homeowners insurance.
Homeowners insurance is a type of property insurance that covers your home and belongings in the event of damage or theft. It also provides liability coverage if someone is injured on your property. Homeowners insurance does not, however, cover repairs or replacements for things like your HVAC system, water heater, or other major appliances and systems in your home.
In contrast, home repair insurance is designed specifically to cover repairs or replacements for major appliances and systems in your home. It doesn’t cover damage to your home or belongings, and it doesn’t provide liability coverage. But it can help you save money on repairs or replacements for things like your HVAC system, water heater, plumbing, electrical system, some roofing repairs, and more.
So which one is right for you? That depends on your needs and budget. If you’re looking for coverage for damage to your home or belongings or liability coverage in case someone is injured on your property, then homeowners insurance is a better option. But if you’re mainly concerned about getting help with the cost of repairing or replacing major appliances and systems in your home, then home repair insurance may be a better choice.
Of course, there’s no reason you can’t have both! Many homeowners choose to have both homeowners insurance and home repair insurance to get the best possible protection for their homes.
Home Repair Insurance vs Manufacturer Warranty
Another type of insurance that’s similar to home repair insurance is a manufacturer’s warranty. A manufacturer warranty is a guarantee from the manufacturer that your product will be free from defects for a certain period of time. For example, most new appliances or home systems come with a manufacturer warranty.
Manufacturer warranties and home repair insurance policies both cover repairs or replacements, but there are some key differences between the two.
- First, a manufacturer warranty typically only covers defects that occur within the first year or two after you purchase the product. Home repair insurance, on the other hand, covers damages that arise as a result of normal wear and tear beyond that time period.
- Second, a manufacturer warranty usually only covers the cost of repairs or replacements. Home repair insurance policies often cover the cost of repairs, replacements, and even some labor costs.
- Finally, manufacturer warranties typically only cover a single product or system. Home repair insurance policies often cover multiple systems and appliances in your home.
What Does Home Repair Insurance Cover?
A basic home warranty from a professional provider covers both appliances and systems. Some companies also offer an enhanced or premium plan that includes more items, such as your swimming pool, septic system, well pumps, HVAC, or roof leaks.
The following are some of the most frequent items covered by a typical home repair insurance:
- Appliances: ovens, refrigerators, washers, dryers, dishwashers, ranges, stoves, ovens, etc.
- Systems: heating and cooling systems, electrical system, plumbing, septic system, ductwork, ceiling and exhaust fans, smoke detectors, fire alarms, garage door openers, etc.
- Other items: swimming pools (pump only), sewer line backup valves, wells (pump only), central vacuum systems, etc.
As you can see, a home warranty may cover a wide range of items in your house. However, it’s crucial to understand that each home warranty firm is different, so ensure you fully understand the terms before signing up for one.
What Doesn’t Home Repair Insurance Cover?
There are certain restrictions to consider when purchasing a home warranty. For example, most home warranties will not cover damage caused by negligence, abnormal use, incorrect installation, or lack of maintenance. Many home warranties also exclude previous issues. The following are some other examples of warranty limitations:
- Structural issues, walls, foundations, flooring, etc.
- Matters related to corrosion, rust, or sediment
- Previous repairs outside of the home repair insurance policy.
- Solar systems and affiliated components
- Specific parts of nonessential equipment that are not required for the covered item to work (oven racks, remote controls, clocks, timers, etc.)
- Any services utilized to correct building and zoning code infractions.
- Any hazardous substances (mold, asbestos, radon gas, etc.) that are detected, identified, and/or removed.
Choosing the finest home warranty company for your property might be a difficult task, especially if there are so many various plans to select from. First Premier Home Warranty is here to assist you in determining the best plan for your needs. We provide free online quotations to help you to decide what would be ideal for your house and budget. To discover what alternatives you have, go directly to our website now!