A home warranty is a service contract that helps cover the repair or replacement of major home systems and appliances due to normal wear and tear. Different types of home warranties are available to suit homeowners, buyers, sellers, and even renters. Understanding the various plans can help you choose the right coverage for your needs.
1. Basic Home Warranty
A basic home warranty typically covers essential systems and appliances that commonly break down over time.
What’s Covered?
- Plumbing system
- Electrical system
- Heating and cooling (HVAC)
- Water heater
- Oven/stove
- Dishwasher
Who Should Consider It?
- Homeowners looking for affordable coverage.
- First-time buyers who want peace of mind.
2. Comprehensive Home Warranty
A comprehensive home warranty includes everything in a basic plan but extends coverage to additional appliances and systems.
What’s Covered?
- All items in the basic plan
- Washer and dryer
- Refrigerator
- Built-in microwave
- Garage door opener
- Ductwork
- Ceiling fans
Who Should Consider It?
- Homeowners with older homes and aging appliances.
- Those who want more extensive coverage.
3. Systems-Only Warranty
This type of home warranty focuses solely on major home systems without covering appliances.
What’s Covered?
- Plumbing system
- Electrical system
- HVAC (heating, ventilation, air conditioning)
- Water heater
- Ductwork
Who Should Consider It?
- Homeowners who already have new appliances but want protection for major systems.
- Those who want to avoid costly system repairs.
4. Appliance-Only Warranty
An appliance-only warranty covers major household appliances but does not include home systems like plumbing or electrical.
What’s Covered?
- Refrigerator
- Washer and dryer
- Oven and stove
- Dishwasher
- Built-in microwave
- Garbage disposal
Who Should Consider It?
- Renters who own their appliances but not the home systems.
- Homeowners who recently upgraded their HVAC or plumbing but want coverage for older appliances.
5. New Construction Home Warranty
A new construction home warranty is typically offered by builders and provides coverage for structural components and home systems in newly built homes.
What’s Covered?
- Structural defects (foundation, walls, roof)
- HVAC, plumbing, and electrical systems
- Appliances (varies by builder)
Who Should Consider It?
- Buyers of newly built homes.
- Homeowners looking for long-term structural protection.
6. Seller’s Home Warranty
A seller’s home warranty is a short-term policy that covers home systems and appliances while a house is on the market. It helps attract buyers by offering added protection.
What’s Covered?
- Major home systems
- Essential appliances
- Emergency repairs during the listing period
Who Should Consider It?
- Homeowners selling their property who want to increase buyer confidence.
- Real estate agents who want to offer buyers extra assurance.
7. Rental Property Home Warranty
This type of warranty is designed for landlords to protect rental properties from unexpected repair costs.
What’s Covered?
- HVAC, plumbing, and electrical systems
- Kitchen appliances
- Optional add-ons for multiple units
Who Should Consider It?
- Landlords who want to reduce maintenance costs.
- Property managers handling multiple rental units.
