HomeBookmark Info.comMake Info.com your HomepagePlugins Visit other Info sites:
Info.com - Your independent search platform...
WebTopics
ResearchJobsFlightsImagesVideosShopmore


Home Warranty Insurance

Home warranty insurance is an often-used contingency for protecting personal property.

Home insurance policies are often highly customized. [©Jupiter Images, 2009]
©Jupiter Images, 2009
Home insurance policies are often highly customized.

Home Warranty Insurance

According to the Home & Family Finance Resource Center, home warranty insurance is the gap between traditional coverage and having a contingency plan for nearly all occasions. It offers protection against the breakdown of home appliances, plumbing, heating, wiring and even the garbage disposal unit. Weighing the costs and benefits of home warranty insurance depends on the needs and budget of the individual homeowner.

Warranty Insurance or Homeowners Insurance?

As explained by homes.org, home warranty insurance is different from homeowners insurance and provides a longer lasting guarantee against home repairs and upkeep expenses. Most of the insurance that homeowners purchase at the time they purchase their home does not last for the entire length of time the owners are in the home. Warranty insurance provides a safety net for the gaps in traditional homeowners insurance. For example, where homeowners insurance may cover the cost of fixing broken tiles on the roof (major repair), home warranty insurance will cover the cost of the dishwasher breaking down (minor repair).

Benefits of Home Warranty Insurance

Traditional house insurance is necessary even if the homeowner opts for the additional security of home warranty insurance. Homeowners insurance covers the cost of major home repairs, restoration and rebuilding in the case of an accident, fire or poor construction. Home warranty insurance covers general wear and tear.

Some of the benefits of home warranty insurance include:

  • Coverage for the breakdown of household appliances such as dishwashers, refrigerators and garage door openers
  • Coverage of all electrical, water and heating systems in the home
  • Coverage that can begin during home construction or can be applied to an existing home
  • Ability to make a home more attractive to potential buyers
  • Low deductibles usually $50 or less
  • Ability for items to be fixed by a certified technician without large payouts upfront
  • Peace of mind


It is important to check the coverage of existing policies when weighing the benefits of purchasing home warranty insurance.

Choosing a Home Warranty Policy

There are a number of home warranties on the market today, and determining the right warranty takes careful consideration and research.

When choosing a home warranty policy, it is important to ask:

  • Does it cover what actually needs to be covered?
  • Are monthly payments within the homeowner's budget?
  • Are there potential complications or technicalities outlined in the fine print that could prevent proper coverage?
  • How necessary is the coverage and does the plan truly benefit the homeowner?
  • Does the policy charge separate deductibles for different appliances that need to be repaired due to the same incident?
  • Does the policy have appliance care stipulations that would prevent full coverage?
  • Does the policy offer to replace or simply repair broken items?
  • If an item has been repaired once, does the policy charge additional deductibles for additional repairs during a given time period (same day, week or year)?


Price comparison sites that offer user ratings and reviews are a good place to start researching potential policy options.

Cost of Home Warranty Insurance

The cost of home warranty insurance varies between companies and the scope of the individual policy. In the case of a new home purchase, home sellers may offer to purchase the warranty plan as an incentive to potential buyers. Sometimes the cost may be split equally between the buyer and seller of a home. The cost of the warranty is usually an annual lump sum with the policy renewal at the time of payment. The average cost of a policy ranges from $200 to $600 annually. Deductibles per item range from $30 to $100.

Is it Necessary?

When determining whether an individual should purchase home warranty insurance, it is important to consider:

  • If the house been inspected and if the inspector recommends the purchase of home warranty insurance
  • How old are the existing appliances in the home?
  • Is the home more than 10 years old?
  • Have a number of repairs been made prior to the purchase of insurance?
  • Does the individual have money set aside to pay out of pocket for major appliance repair or replacement?
  • Does the homeowner have access to professional service contractors in case of an emergency?


Homeowners with new appliances, additional savings set aside for maintenance and a newer home may not need the additional coverage offered by a home warranty program.

Home warranty insurance policies are growing in popularity and often are offered by the builder or realtor. Although not always necessary, the savvy individual should consider the additional coverage to add a little peace of mind to the sometimes stressful world of home ownership.

Related articles

Search the Web

We are not lawyers or legal professionals, nor are we financial counselors or professionals. The content of this Web site is intended to provide general information and advice. Prior to making any legal or financial decision, you should consult a licensed professional. For more information see Terms of Service/Usage Agreement.
Home   |   About   |   Media Comments   |   Legal & Privacy Policy   |   Tell a friend   |   Contact
Copyright © 2012 Info.com – All Rights Reserved.