If an appliance or a major system in your home breaks down, repairing or replacing it can be expensive. If two or more problems arise within a relatively short amount of time and you don’t have funds set aside, covering multiple bills can be tough.

With a home warranty, you won’t have to worry about finding yourself in that sort of situation. It can cover many bills for repairs or replacement and minimize your out-of-pocket costs.

How Does a Home Warranty Work?

Specifics vary from one company to another, and businesses that sell home warranties typically offer several plans with different levels of protection. In general, a home warranty will cover a specific list of systems and appliances. For example, it may cover your home’s plumbing, electrical, and HVAC systems, as well as your refrigerator, stove, washer, and dryer.

If something breaks down, you can contact the warranty company and arrange to have a repairperson visit your home, diagnose the problem, and fix it or replace the unit, if necessary. You’ll have to pay a fee for the service call or a deductible, which may be much less than the cost of repairs or replacement.

A home warranty won’t cover every system or appliance and every potential problem. Before you buy a home warranty, thoroughly review the contract so you understand what is and isn’t covered.

What’s the Difference between a Home Warranty and Homeowners Insurance?

A home warranty covers breakdowns that occur due to regular wear and tear. Homeowners insurance is intended to cover sudden and unexpected losses, such as damage caused by a storm or a fire.

People sometimes mistakenly believe that a homeowners insurance policy will cover systems and appliances if they break down and are surprised when their claims are denied. A home warranty can provide additional protection and cover losses that your homeowners insurance won’t pay for so you can avoid large and unexpected out-of-pocket expenses.

Do You Have the Right Homeowners Insurance Coverage?

A home warranty can cover many problems that you may encounter, but it won’t pay for everything. If a storm or some other sudden event damages your home, appliances, or belongings, you will need to file a claim with your homeowners insurance company.

It’s important to periodically review your coverage and make sure that it matches your needs. Petruzelo Insurance can review your existing policy, discuss your needs, and possibly recommend changes that will provide better protection while keeping your premiums affordable. Contact us today to learn more and to get quotes from several top insurance companies.