What Is A “Home Warranty” Or A “Home Protection Plan”?
A home warranty is generally a promise that a property is free of listed defects. Home warranties are often provided by homebuilders on newly constructed homes. The warranty may be backed by a third party who will partially guarantee the home to free be of material defects in workmanship and materials, guarantee the major systems in the home (plumbing, electrical, heat, air conditioning, etc.), and guarantee the home to be free of structural defects. The warranty period for the various components of the home will vary from plan to plan. A home protection plan is generally in the nature of a service contract administered by a third party. These are available on existing homes. These may be referred to as a home warranty, but differ in that they are less comprehensive. The plan will provide coverage for systems and appliances for a given property for one year. Many of the plans offered may be renewable from year to year. They will usually have a deductible feature for each service visit.
A home warranty is generally a promise that a property is free of listed defects. Home warranties are often provided by homebuilders on newly constructed homes. The warranty may be backed by a third party who will partially guarantee the home to free be of material defects in workmanship and materials, guarantee the major systems in the home (plumbing, electrical, heat, air conditioning, etc.), and guarantee the home to be free of structural defects. The warranty period for the various components of the home will vary from plan to plan. A home protection plan is generally in the nature of a service contract administered by a third party. These are available on existing homes. These may be referred to as a home warranty, but differ in that they are less comprehensive. The plan will provide coverage for systems and appliances for a given property for one year. Many of the plans offered may be renewable from year to year. They will usually have a deductible feature for each service visit.
