Home warranty is is not an insurance policy but a service contract that covers the cost of repairs or replacement of certain appliances and systems in the home.

Home warranty is is not an insurance policy but a service contract that covers the cost of repairs or replacement of certain appliances and systems in the home.

Yes, that's correct. A home warranty is not an insurance policy, but rather a service contract that covers the cost of repairs or replacement of certain appliances and systems in the home.

Home warranties typically cover items such as heating and cooling systems, electrical systems, plumbing, and major appliances like refrigerators, dishwashers, and ovens. If a covered item breaks down, the homeowner can contact the home warranty provider and they will send out a technician to diagnose and repair the problem. If the item cannot be repaired, the home warranty provider will typically replace the item.

It's important to note that home warranties are not a substitute for homeowners insurance. Homeowners insurance policies typically cover damage caused by perils such as fire, theft, and natural disasters, while home warranties only cover the cost of repairing or replacing specific items that are covered under the contract.

Home warranties are typically purchased for a specific period of time, such as one year, and the cost can vary depending on the level of coverage and the provider. Homeowners should carefully review the terms and conditions of the contract to ensure they understand what is covered and what is excluded, as well as any deductibles or service fees that may apply.

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