Typically, home warranties protect homeowners from repair costs that aren't covered by their regular hazard insurance policy. Home warranties are like one year service contracts that cover the repair or replacement of major home systems and appliances that break down due to normal wear and tear.  They cover such things as plumbing systems, furnaces, air conditioning units, hot tubs, attached microwave ovens, washers & dryers, refrigerators, central vacuum systems,  disposals, ceiling fans, automatic garage door openers,  and even door bells.

Most insurance carriers will require "add on" premiums to cover many of these items.  The only requirement for coverage is that the items are in good working order at the time the policy is put in force.

Typically, inspections are not required by the warranty companies.

Most home warranties cost around $290 for a basic policy upward to $450 a year for the super coverage policy.  If anything breaks, an additional $35 to $50 is charged per item for the service call. 
                                                                
Making a warranty claim is as simple as calling a toll free number.  An independent contractor will come to your home, complete the necessary repairs and bill your warranty company.

Most policies have a reasonable dollar limit on repairs. Be sure to understand and agree to the limits, specific coverages, terms and exclusions before you buy the home warranty insurance plan.                                       

<sup><sub>Some Home Warranty Companies

American Home Shield (AHS)               1-800-776-4663
Blue Ribbon Home Warranty, Inc.          1-800-571-0475  or 303-986-3900
Fidelity National Home Warranty           1-800-862-6837
HMS Home Warranty                        1-800-247-3680
Home Warranty of America                    1-888-492-7359</sub></sup>

Selling your home?

A Home Warranty makes your home more appealing, and protects you before, during and after the sale.

• 8 out of 10 buyers prefer to buy a warranted home.
• Homes with a warranty sell up to 50% faster than unwarranted homes.
• Homes with a warranty increase sales prices by up to 3% on average by making it a safer investment for the buyer.
• Seller coverage can protect you against costly repairs while your home is listed for sale ? at no additional cost! *
• A warranty can help avoid conflicts over a malfunctioning warranted item that could affect or delay your sale.
• Home warranties reduce the chance you´ll be asked to reimburse the buyer for a breakdown of a covered component after closing.

Buying a home?

With a Home Warranty, you´re covered against a mechanical breakdown of a covered component for a full year, beginning the day of closing. You pay only a standard deductible for each claim.

• A standard deductible limits your cost for repairing a covered system, appliance or component.
• Provides coverage generally not offered by a homeowner´s insurance policy.
• A network of qualified contractors to assist you is only a phone call away 24 hours a day, 365 days a year.
• Optional coverages are available for additional protection.
• The warranty may be renewed for subsequent years, so you can enjoy the protection for as long as you own your home (eligibility subject to underwriting criteria.)
• Four years of coverage is available for newly constructed homes.