Having a home warranty used to be a precaution that was worth having in every home long before 2020, but with the COVID-19 pandemic making people all across the country and the world stay inside for longer than they ever have, the use of home warranties has skyrocketed. In 2021, home warranties are paramount, as it seems that the new normal is here to stay.
Is a Home Warranty the Same as Home Insurance?
No, they are not. Home warranty plans are different from insurance policies, they cover the cost of repair or replacement of a set of covered household items like electric, plumbing, heating, air conditioning, or major kitchen appliances, which are in good working condition when the warranty is created.
Should they break down from normal wear and tear, the home warranty covers repair costs or even replacement. However, should these be damaged or lost due to theft, fires, or other perils, then the home insurance policy covers the losses. It is very important to have both precisely because together they cover the full range of causes. What warranties do not cover are structural items like doors and windows.
How Has the Pandemic Affected Home Warranty Use