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Learn about the Different Types of Home Warranty Coverage

Nothing gets more exciting than that sound of the keys to a new house jingling in your own hands. However, that excitement might change into a nightmare when issues start to arise after moving in.

Replacing a heating unit or air conditioning system can cost you around $2,980 or even more than that, whereas a plumbing issue may add up to $1,600.

Luckily, a Landmark Home Warranty brochure highlights that the right warranties for homes may protect everything in the house, and this includes the appliances and systems. So, in the end, different kinds of home warranties will ensure you save cash.

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So, What Are Home Warranties

They are referred to as contracts that homeowners provide to cover replacement services and repairs for a particular period. A home warranty needs home buyers to comply with maintenance schedules, which are verified by periodic inspections.

They can get compared to Liberty Guard insurance that helps protect homes as well as all their possessions against damages or theft.

In countries like the United States, home warranties don’t convey legal warranties explicitly. Instead, they are regarded as home service contracts, covering most of the home’s components, including the costs related to repairs and replacements of household appliances and items.

How They Work

After buying home warranties, coverage will kick in one month after making your first payment. If covered systems and appliances break down, and the warranty hasn’t expired yet, you may file a service request or claim with your preferred company for the issue to get addressed.

In case you are in the process of buying a house, you can roll a home warranty into the mortgage payment you make. But first speak to the mortgage lender as well as the home warranty provider to determine whether this is possible.

What Home Warranties Covers

Most home warranties cover replacement, repair, or service of home systems and appliances. Home warranties and homeowners insurance are two different things.

Home insurance overs financial relief in the event of unexpected perils, whereas home warranties help cover systems and appliances listed in the agreement.

With a home warranty, you will be able to reduce the expenses of replacing or fixing big-ticket items, which you may not have to save cash for.

Home warranties differ. Though, there are several standard coverages for systems and appliances you may expect from many home warranty providers. So, in general, different types of home warranties may cover systems and appliances like:

  • Dishwasher
  • Oven
  • Ductwork
  • Water heater
  • Plumbing system
  • Spa equipment
  • Refrigerator
  • Electrical system

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Exclusions and Limits on Home Warranties

At times, home warranties can have limitations on appliances and systems set at the total amount. For instance, home warranty companies can cover repairs on a dishwasher up to around $490, leaving you to only pay for the rest of the repair expenses.

Your contract may stimulate the amount your preferred home warranty company might pay for replacements or repairs and whether or not there is a cap on the amount of cash you can pay.

In addition, your contract may include exclusions for appliances or systems which fail because of not providing the right maintenance. So provided the appliances or systems in question get continuous maintenance, a home warranty will cover the replacement or repair costs.


Basically, there are three kinds of home warranties. The kind of sale may dictate which types of home warranties will be more suitable for you. So without further ado, narrow down to the following types of home warranties:

  • Sellers’ home warranties: Every homeowner looking to sell their houses will need to get a warranty. The best thing about this kind of home warranty is that you may do replacements and repairs at an affordable cost. It may then give you an added advantage when negotiating the price with potential buyers since you will be certain that things may work according to the plan.
  • Homeowner’s home warranties: These warranties are among the common types of home warranties. Homeowners may buy it anytime so as to get coverage for appliances and systems in a home. Cheap plans can cover a limited amount of items in a home. Many homeowners’ warranties will cover everything, from pools and plumbing systems to kitchen appliances.
  • Homebuyers’ home warranties: Although homeowners’ warranties are meant for individuals who have a home already, homebuyers’ warranties target people who want to buy a house. A home inspector can inspect all the appliances and systems in order to test and look for defects in them. If they get any, warranty providers will not pay for appliances or systems which have defects in the event of a breakdown. A perfect way to handle this issue is to note all the defects you get and renegotiate with sellers.

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To Wrap-up!

Different kinds of home warranties are designed to cover major home appliances and systems, including plumbing, electrical, and refrigerators, just to name a few.

A newly constructed home also comes with builder’s warranties. Though you may buy a warranty on homes of any age, provided all the systems are working well.

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