Have you ever heard of home repair insurance? If so, you may have wondered what, exactly, home repair insurance could possibly be. Is it the same thing as homeowners insurance? Or is it something different? And how does home repair insurance relate to a home warranty? Well, don’t worry. We’re here to clear things up. 

Simply put, home repair insurance and home warranty mean the same thing (and for confusion’s sake, home repair insurance is sometimes also called homeowner repair insurance or even household repair insurance). So, if you know what a home warranty is, then you also know what home repair insurance is. If, on the other hand, you don’t know what a home warranty is, we can fill you in.

Home Warranty/Home Repair Insurance Definition

To understand what home repair insurance is, let’s first take a look at what home insurance is not

Home insurance is not homeowners insurance or a manufacturer warranty.

Homeowners insurance covers accidental damage to your property and possessions, as a result of theft, fire, natural disasters, etc., but does not cover issues related to natural wear and tear. A manufacturer warranty covers appliances and systems against maintenance, repair, and replacement costs, but usually only for one year from purchase, and only for the original owner. 

And while homeowners insurance and manufacturer warranties are certainly important (good luck purchasing a home without homeowners insurance), they don’t offer the most complete coverage. For that, you also need home repair insurance.

Home repair insurance is designed to fill in the gaps left by homeowners insurance and manufacturer warranties, by offering coverage on vital home systems and appliances. Home warranty plans provide insurance for home repairs, and generally cover a range of components, including (but not necessarily limited to):

  • HVAC systems
  • Electrical systems
  • Plumbing
  • Water heaters
  • Washers and dryers
  • Garbage disposals
  • Central vacuums
  • Refrigerators
  • Stoves
  • Trash compactors
  • Built-in microwave ovens

Additionally, many home warranty companies offer extended home repair insurance options, covering things like pool and spa equipment, water softeners, roofs, and more.

How Does Home Repair Insurance Work? 

When normal wear and tear causes an appliance or system to fail, home repair insurance is there to set things right. Home warranty companies generally charge a standard fee for one year of home coverage. 

During that time, if any covered items require maintenance, repair, or replacement, the homeowner simply contacts the home warranty company and requests service. The warranty provider finds a reliable local repair professional, who then contacts the homeowner to set up an appointment. The repair professional diagnoses and corrects the problem, with warranty provider covering any related costs (including labor and parts). Finally, the homeowner pays a small per-job service fee. After the repairs have been completed, the warranty company contacts the homeowner to follow up on the provided service. 

What Are the Benefits of Home Repair Insurance? 

Above all, the right home repair insurance is simple. It takes a lot of the hassle out of home repairs. At the same time, home repair insurance is cost effective, allowing homeowners to spend significantly less per year than what they would otherwise be paying out of pocket for individual home repairs.  

And home repair insurance is also a great way to enjoy peace of mind; instead of worrying if the AC unit is going to fail and clean out your savings account, you can budget for a regular annual expense, and let the home warranty company take care of any unexpected problems. How’s that for value?
To learn more about home warranties, check out the Home Service Club In-Depth Home Warranty Guide., and see if home repair insurance (or whatever you want to call it) is right for you! 

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