Thought of getting a home warranty, but you have a limited understanding of how it works for you? Do you know how it can secure your home? Have you checked on the benefits as well as the drawbacks? Then, try to learn about it point by point. Be guided and understand the nitty-gritty of the business.

Understanding Home Warranty

A home warranty is a contract entered into by two parties: the home warranty company and the homeowner. The contract adheres to the strict legal guidelines of the government within the United States. It provides the homeowner with the necessary repairs and replacement services for your home appliances and any customizable household systems you want to include in the plan’s coverage.

A standard home warranty plan may include full coverage of your household systems and your appliances’ parts, components, as well as the repairs and services. A standard plan means that when a breakdown occurs to your household systems or home appliances after the supplier’s warranty period, the home warranty plan provider’s services come in.

You can customize a home warranty plan based on your need, wherein the cost will add to your basic plan. Coverage of a customized plan may include your household systems like:

  • Heating and air conditioning systems
  • Electricals
  • Plumbing system
  • Pools

Home warranty plan providers offer many plans. You can get more information about home warranties online or from your warranty provider by reading more from reputable online sources.

Home Warranty Plan Options

There are several options to choose from depending on your need and how the plan works for you. Take your cue from the following:

Basic Plan

A basic plan covers a list of multiple appliances. There are, however, some exemptions, like the AC, washer and dryer, and your refrigerator. However, some items can be added to the plan at an additional cost, such as your septic system, pool, well and sump pump, and septic pumping. You can even add in your plan a limited-service for your roof leak, the second unit of a refrigerator, a stand-alone freezer, and your central vacuum.

A basic plan costs you around $370 to $378 per year plus the additional cost on your add ons. Some companies offer an additional one-month free service while others are fixed at cost.

Total Plan

A total plan costs around $450 for annual coverage, which differs per company. Some companies cover most household systems and a few appliances. Another company covers an equal number of household appliances and household systems. Like the basic plan, you also can get the plan with an extra one-month service or a fixed service rate.

Appliance Monthly Warranty Plan

From the term itself, the appliance warranty plan covers only appliances every month, which means that the coverage applies only on the month stipulated on your contract. Same with other plans, only the list of appliances covered in your contract is included for the services. An advantage of this plan is you can save up to 19.99% if you get an annual contract.

Systems Guard Plan

At a specific cost per month, you can have the systems guard plan for a few numbers of your household systems. The plan may cost roughly around $500 per year. Rather than spending a huge amount off the plan for your maintenance services, better get this plan in anticipation of the expenses, which may cost a huge budget.

According to, it is important to allocate a budget of 5% to 10% of your net pay for household maintenance and invest to pay for your household systems’ home warranty plan.

The Coverage

You can enjoy multiple plans with multiple coverages. These are some of the most common coverage you will get from your plan:

The cost of repairs like the technical service and the replacement parts and components are included for appliances. The cost normally ranges from $105 up to $240, which includes parts and professional service. Based on the figures, it would already help you decide the appropriate plan that you will get.

However, The coverage of repairs or parts replacement is limited to normal wear and tear of the units and does not include malfunctions caused by careless use. Thus, a technician will conduct an assessment before the repair or replacement.

Likewise, for your household systems like the heating and filtration system, the coverage may include only the pool sweep motor and pump, the blower motor, and other accessories, which are specifically stipulated in the contract. While for your garage doors, all parts and components are covered except for the garage door track assemblies.


A home warranty plan helps you save from enormous expenses caused by your home appliances and household systems’ breakdown and malfunctions. While they provide a lot of ease and flexibility, it is best to decide according to your need and the plan’s economic value. Get the best plan provider that can give you the services you need and check the coverage, payment terms, and other conditions included in the plan before closing the contract.