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What is a Home Warranty?

Raimo Valin by Raimo Valin
August 5, 2021
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What is a Home Warranty?
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Home warranties are a subject that often come up during a sale or purchase of a home. There are homebuyers who know what home insurance is all about, but they often have to look up home warranty on the internet, or ask their real estate professional, What is a home warranty? A home warranty is not the same thing as homeowners insurance so it is important for homebuyers and homeowners to understand the role of home warranties.

Appliances, systems, and devices break down all the time due to normal wear and tear. If you’re not protected, the repairs can become quite expensive. There’s only so much that you can do to prevent minimizing wear and tear as well as the impact of ageing on an appliance. Average repair costs per year can reach thousands. A home warranty can greatly alleviate the expense.

A home warranty, or home service agreement, is a contract between a new or existing homeowner and a home warranty company that provides for repair and replacement service on a home’s major components, appliances, and systems due to such events as normal wear and tear and ageing. Other situations that would typically be covered by a homeowner’s insurance policy, but are not limited to, include: vandalism, tornadoes, hail, hurricanes, fires, floods, or theft.

A home warranty plan can include, but is not limited to, major appliances such as:

  • Central air conditioning and heating
  • Interior electrical
  • Plumbing
  • Water heater
  • Range/Oven/Cooktop
  • Refrigerator
  • Dishwasher
  • Washer and Dryer
  • Garage door opener

It’s also possible to add-on coverage for plumbing, interior electrical, water/sewer lines, central heating/cooling, well pumps, as well as add electronics protection plans, and much more!

A home warranty protects homeowners against unforeseen replacements or repair bills. Not only does a home warranty save money, but it can also save on repair time. It takes a lot of time to locate qualified technicians to effectively make a repair on-site, or recommend sending the item for repair, or do a replacement. With a home warranty, the company has pre-approved expert technicians. They have agreements with these service providers. When something that is covered by a home warranty plan breaks down, the homeowner calls the home warranty company, which sends one of its service providers to examine the problem. If the provider determines that the needed repair or replacement is covered by the warranty, they complete the work. How ever, for companies such as ARWHome, if you already have a technician that you would like to use, you can refer them to ARWHome and once approved, you will be able to have your repairs done by them.

A home warranty  protects against expensive, unforeseen repair bills. Home warranties also make sense for homeowners who don’t want to worry about finding a good contractor when they have a problem. Warranties are also ideal for people with expensive items.

You should also know what a home warranty does not cover. Appliances, systems, and devices are not covered if damaged by natural or man-made disasters. They tend NOT to be covered by events that would normally be covered by a homeowner’s insurance policy, such as, but not limited to: tornadoes, hurricanes, fires, floods, or theft.

At ARWHome, we offer comprehensive home warranty plans suited to your specific needs. You can add more coverage on top of our plans as necessary. We provide an easy interface for you to select exactly what you need covered. A home warranty can provide reassurance to a home buyer or current homeowner. It is important for a homeowner’s peace of mind.

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