Homeservices Insurance Explained

Homeownership is a significant achievement, but it also comes with a lot of responsibilities. Owning a home requires constant maintenance and upkeep, which can be costly and time-consuming. In addition to that, homeowners also need to think about protecting their investment from potential risks, such as natural disasters, theft, and accidents. This is where homeservices insurance comes in.

What is Homeservices Insurance?

Homeservices insurance, also known as home warranty insurance, is an insurance policy that covers the cost of repairs or replacement of home appliances and systems that are damaged due to normal wear and tear. It is different from homeowners insurance, which primarily covers the structure of the home and its contents against damage or loss due to unexpected events.

Homeservices insurance is typically offered by companies that specialize in providing home warranties. These companies offer various packages that cover different appliances and systems, including HVAC, plumbing, electrical, and major appliances such as refrigerators, washing machines, and dryers.

How Does Homeservices Insurance Work?

When a homeowner purchases a homeservices insurance policy, they pay a monthly or annual premium to the insurance company. In exchange, the insurance company agrees to cover the cost of repairs or replacement of covered appliances and systems that break down due to normal wear and tear.

If a covered appliance or system breaks down, the homeowner can file a claim with the insurance company. The insurance company will then send a licensed contractor to diagnose the issue and determine whether the repair or replacement is covered under the policy. If it is covered, the insurance company will pay the contractor directly for the cost of the repair or replacement.

What Are the Benefits of Homeservices Insurance?

There are several benefits of having homeservices insurance:

What Is Covered Under Homeservices Insurance?

The items covered under homeservices insurance vary depending on the policy and the provider. However, most policies cover the following:

• Heating and air conditioning systems
• Plumbing systems and stoppages
• Electrical systems and panels
• Water heaters
• Refrigerators, ovens, stoves, and other major appliances
• Dryers and washing machines
• Garage door openers

What Is Not Covered Under Homeservices Insurance?

While homeservices insurance covers most appliances and systems, there are some things that are not covered under the policy:

• Pre-existing conditions or problems
• Items that are covered under the manufacturer’s warranty
• Appliances and systems that have not been properly maintained
• Items that are damaged due to user error or abuse
• Items that are damaged due to natural disasters or other catastrophic events

Is Homeservices Insurance Worth It?

Whether homeservices insurance is worth it depends on a few factors, such as the age and condition of the home, the cost of repairs and replacements, and the homeowner’s budget. For homeowners with older homes or outdated appliances and systems, homeservices insurance can be a smart investment that provides peace of mind and cost savings.

However, for newer homes with modern appliances and systems that are still covered under the manufacturer’s warranty, homeservices insurance may not be necessary.

Conclusion

Homeservices insurance is a valuable insurance policy that can provide homeowners with peace of mind and cost savings. By understanding what is covered and what is not covered under the policy, homeowners can make an informed decision about whether homeservices insurance is right for them.

FAQ

What is the difference between homeservices insurance and homeowners insurance?

Homeservices insurance covers the cost of repairs or replacement of home appliances and systems that are damaged due to normal wear and tear. Homeowners insurance primarily covers the structure of the home and its contents against damage or loss due to unexpected events.

What is covered under homeservices insurance?

Most homeservices insurance policies cover heating and air conditioning systems, plumbing systems and stoppages, electrical systems and panels, water heaters, refrigerators, ovens, stoves, and other major appliances, dryers and washing machines, and garage door openers.

What is not covered under homeservices insurance?

Homeservices insurance does not cover pre-existing conditions or problems, items that are covered under the manufacturer’s warranty, appliances and systems that have not been properly maintained, items that are damaged due to user error or abuse, and items that are damaged due to natural disasters or other catastrophic events.