What is a home warranty plan?

We all want our home appliances and devices to be secure and financially protected in case of a sudden problem causing failure to work properly. When some people think of a warranty, they think of a manufacturer’s warranty for a new appliance, computer, or electronics device. However, there is protection available for major items that are considered part of the life investment of owning a home. For many homeowners, a home warranty plan is the added layer of protection they need for essential systems, electronic devices, and appliances.

Home Warranty

A home warranty is a service agreement between the homeowner and a home warranty company that covers repairs and replacements of most major home appliances and system components due to normal wear and tear and standard usage problems. Home warranties cover the cost of repairs or replacements for a number of your home systems and appliances. The warranty guarantees to the homeowner that if an item that is covered by the home warranty plan stops working, or breaks down, it will be repaired or replaced by the warranty company, subject to the terms and conditions of the contract.

Home warranties typically cover major appliances and systems like:

Central air conditioning and heating

Interior electrical


Water heater




Washer and Dryer

Garage door opener

Ceiling fans

Plus more…

There are even electronics protection plans that provide:

Covers new and used electronics

Failures caused by normal wear and tear

Damage caused by power surges

A brand new replacement laptop battery every year

Tech Support

Accidental Damage from Handling (ADH) for drops, spills and cracked screens on select portable devices.

A home protection plan typically covers mechanical failures or breakdowns due to normal wear and tear of your home appliances or major systems, i.e. heat/air conditioning, plumbing, electric, kitchen appliances, etc., depending upon the plan and options that you choose.  You can also include household systems such as the interior electrical, plumbing, water and sewer lines, central heating/cooling units, well pumps and more.

How does a Home Warranty Plan Work?

When a person purchases a home warranty, they are entitled to certain protections as part of the plan. If a covered appliance or system stops working due to reasons under the warranty’s terms and conditions, then it will be repaired or replaced by the warranty company. The homeowner will contact the warranty company and they will arrange for a licensed, pre-screened, pre-qualified technician to come to the home and assess the problem. If the issue is due to normal wear and tear or a mechanical failure and is covered under the terms and conditions and limits of the contract, then the appliance or system will be repaired or replaced and the homeowner will only have to pay a service fee as defined in the contract.

A home warranty is ideal for real estate sales. A  warranty can help home buyers feel secure knowing that they will be protected in the event of a sudden breakdown of an appliance or home system that is covered under the plan. When you sell your home, your home warranty plan can be reassigned to the new homeowners.

It is important to note that a warranty company can have a 30-day wait period to help protect the company from pre-existing conditions. This waiting period helps to keep plan costs down since they do not perform an inspection to determine the condition of your appliances and systems.

What Makes a Quality Home Warranty Plan

The  best home warranty plan is a plan that meets your specific needs. Flexibility and fair price are essential to getting the best home warranty plan. Quality plans are customisable and cover a wide range of appliances and systems. As well, it can be advantageous to buy a bundle plan and save. A home warranty offers guaranteed peace of mind since it helps homeowners protect their budgets from unexpected repair and replacement bills.