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What is Covered in a Home Protection Plan

Posted by on May 23, 2013

What exactly is a home protection plan, and what covered?  In concise terms, a home warranty, or home protection plan, is a contract which covers the replacement and repair of your home appliances or systems.  This does not cover the home’s structure itself.  If and when your appliances break down, you insurance company fits the bill for repairs or replaces the equipment.  Buying a home is probably the most expensive you will ever make in your life. Many times, in the case of newer homes, home protection plans are not required, because the average yearly cost of appliance repair is likely to cost less than the policy itself.  Most companies who offer policies for newer homes, usually only offer limited coverage.

The question remains, what do these plans cover? Of course, in the long run this could save you from stress when it is the middle of July and your refrigerator burns out, but is it really worth it? For many, the money spent is worth the peace of mind, especially for first-time home owners. Because all companies are different, it is hard to answer this exactly.  The cost of a home protection plan can range from $250 and upwards, depending on the length of time, and the appliances you prefer to be covered.  The best way to go about this is to begin by getting free price quotes from several companies, and checking out reviews of those companies who provide these services.  Also, make certain you are hiring a company licensed by the state of which you are a resident. Check with the Better Business Bureau, and the licensing agency to check any complaints that may have been filed against the company.  With a little extra time and research, you can find a reputable company with the most affordable policy and best coverage options for home warranty information.

It is imperative to pay close attention to the policy a particular home warranty company is offering.  Be sure to read the fine print, and check to be certain it will cover the specific items you need protected.  For example, one company may include dishwasher repairs and replacement, while another may require a policy supplement to cover this particular item.  You may end up paying more if you don’t see these hidden costs up front.  Because all companies are different, it is important to read the fine print. As always, be sure to read the fine print.  Make sure to inquire to your prospective company if there are caps, limits, ect.

There are several things that are not usually covered under these policies.  Outdoor tools, such as sprinklers will not be covered.  Even faucet repairs are not generally covered.  As previously stated, it is important to check to make sure that all of your desired appliances are covered, as not all plans equally cover refrigerators, washers & dryers, garage door openers, spas, or pools. However, you may be able request customized policies to cover these items.   Permit fees and the hauling away of old equipment may be left up to you as well.

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