What Is Repair or Replacement in Home Warranty?

When a home warranty is being discussed, the terms “repair” and “replacement” are two of the most important terms.

These words are at the core of what a home warranty does – it covers the costs of replacement or repair of items in your home. But what do these terms mean, and how do they apply to you? Let’s break them down. 


What Is a Home Warranty?

A home warranty is a kind of insurance that covers the costs of repairing or replacing covered items in your home.

The policy is typically for a one-year period, covering damages or breakdowns during that time. Covered items vary by policy but can include appliances, plumbing, electrical systems, and more.

One of the key benefits of a home warranty is that it can help you avoid expensive repairs or replacements.

For example, if your refrigerator breaks down, the cost of repairing or replacing it can be expensive.

But in case you have a home warranty, then the cost of those repairs may be covered by the policy. This can save you a lot in terms of time, money, and effort.

It’s important to note that not all home warranties are created equal. Some policies only cover specific items, while others may cover a broader range of items.

It’s also important to read the policy’s fine print carefully to understand what is and isn’t covered.

Read: How To Get Home Warranty To Replace Furnace?

Read: Who Pays For Home Warranty: Buyer Or Seller?

What Is Repair in Home Warranty?

What Is Repair in Home Warranty

“Repair” refers to the process of fixing an item that is covered by the policy. This can include replacing parts, repairing damage, or cleaning an item.

In many instances, repairs will be done by a professional contracted by the home warranty company.

When you claim a repair, the home warranty company will send a technician to your home to assess the situation.

If they determine that the item can be repaired, they will do so. Sometimes, you may need to pay a deductible before the repairs are made.

What Is Replacement in Home Warranty?

“Replacement” refers to completely replacing an item covered by the policy.

This means that the old item will be removed, and a new one will be installed in its place. Again, a professional hired by the insurance company will be replacing your items.

If the technician sent by the home warranty company determines that the item needs to be replaced, they will do so.

Sometimes, you may need to pay a deductible before the replacement is made.

Read: How Much Does A Home Warranty Cost Per Year?

What To Look For In A Home Warranty Company?

How Do I Know if Something Needs Repair or Replacement?

How Do I Know if Something Needs Repair or Replacement

In most cases, it will be up to the technician to determine if an item needs to be repaired or replaced.

They will assess the situation and make a recommendation based on their findings. In some cases, you may have the option to choose between repair and replacement.

For example, if your dishwasher leaks, the technician will first try to repair the damage. If they cannot do so, or if the repair would be too expensive, they may recommend replacement.

In such situations, you would have the option to choose whether you want to repair or replace the dishwasher.

What All Things Can You Get Replaced or Repaired In A Home Warranty Plan?

What All Things Can You Get Replaced or Repaired In A Home Warranty Plan

Different home warranty companies offer different coverage. Here’s the most basic list of equipment and systems that a home warranty company typically covers:

  • Heaters
  • Refrigerators
  • Washers & Dryers
  • Oven
  • Dishwasher
  • HVAC system
  • Interior plumbing
  • Electrical equipment
  • Garbage disposal
  • Ductwork, etc.

What Does Home Warranty Plan Not Cover?

A home warranty plan may not cover the following:

  • Pre-existing conditions
  • Installation damage
  • Pest damage
  • Damage caused due to misuse
  • Cosmetic defects
  • Appliances still under manufacture warranty
  • Modified equipment

Pros And Cons Of Home Warranty

Final Thoughts

When it comes to home warranties, it’s essential to understand the terms “repair” and “replacement.”

These terms refer to the process of fixing or replacing an item covered by the policy.

In most cases, repairs or replacements will be done by a professional who the home warranty company hires.


Home warranties lasts for how long?

The duration of a home warranty can be anywhere between one-three years, depending on the company that you have chosen. 

How much do home warranty companies charge?

On average, home warranty companies charge $400-$550 annually for the most basic plan.

You can expect to pay $480-$840 annually for more comprehensive plans. Apart from this, the service fee range from $50-$120 on average. 

Is a home warranty plan worth it?

If your appliances are not under the manufacturer’s warranty, if you want to safeguard yourself against unexpected expenses, then a home warranty plan may be worth it for you. 

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