The Complete Beginner's Guide to Home Protection Plan Companies

Understanding Home Protection Plans

Home protection plans, also known as home warranties, are service contracts that cover the repair or replacement of major home systems and appliances. These plans can offer peace of mind to homeowners by providing financial protection against unexpected breakdowns.

How Home Protection Plans Work

When a covered item breaks down, the homeowner contacts the home protection plan company. The company then sends a qualified service technician to diagnose and fix the issue. Depending on the plan, the homeowner might only pay a small service fee for the repair.

Benefits of Having a Home Protection Plan

Financial Security: Protects against high repair costs.
Convenience: Access to a network of qualified technicians.
Peace of Mind: Ensures home systems and appliances are covered.

Choosing the Right Home Protection Plan Company

When selecting a home protection plan company, consider the coverage options, cost, reputation, and customer service. It's crucial to read reviews and possibly consult lists such as the 10 best home warranties 2021 for informed decision-making.

Coverage Options

Most companies offer various plans, from basic to comprehensive. Basic plans might cover essential systems like plumbing, while comprehensive ones include all major systems and appliances.

Cost Considerations

Costs vary depending on the plan's coverage and the company. It's important to weigh the annual premium against potential savings on repair costs.

Commonly Covered Items

Plumbing Systems
Electrical Systems
Heating and Cooling Systems
Major Appliances like refrigerators and ovens

Some plans even cover plumbing and drainage insurance as part of their offerings, providing extra coverage for these essential systems.

FAQ

What is the difference between home insurance and a home protection plan?

Home insurance covers damage from events like fires or theft, while a home protection plan covers repairs or replacements of systems and appliances due to normal wear and tear.

Are there any exclusions in home protection plans?

Yes, exclusions vary by company and plan. Common exclusions include pre-existing conditions, misuse, and lack of maintenance. It's vital to read the terms and conditions thoroughly.

Can I get a home protection plan if I'm selling my house?

Yes, many sellers purchase home protection plans to offer as an incentive to potential buyers, providing them with added security and confidence in their purchase.