• Howard Gallagher

What Is A Home Warranty?

To keep it simple, a home warranty is an annual service agreement that covers repairing and/or replacing most home appliances and systems components that break down with time. A home warranty plan is typically a service agreement between the homeowner and the home warranty company providing the policy to the homeowner. When purchasing a home warranty plan, it makes sense to think of the warranty as a safety net against expensive unforeseen repairs. Basically, we cover your damaged items when you’re having trouble with your new microwave, dishwasher, water heater, and more.

It is without a shadow of a doubt that the appliances in your home will deal with wear and tear. Home appliances can break for any number of reasons. From tiny tots playing in the clothes dryer to A/C units failing to provide much needed refreshment on a hot summer day, there are plenty of home warranty plans available to cover damage done to the home appliances and systems you rely on daily.

Home Insurance vs Home Warranty?

Home Insurance

Home insurance policies are different from a home warranty, this is a common misconception. There are some clear points to tell the difference between the two.Home insurance plans are mandatory policies that come with your mortgage upon purchasing a home, designed to protect your home in the event your home is affected by a myriad of things: fire damage, water damage, property crimes, and etc. These insurance plans are intended to protect the interior and the exterior of your home from damages, in any event that your personal property is damaged due to inclement weather or disasters, homeowners insurance can cover them, too.

Home Warranty

A home warranty policy is optional but is warranted when thinking about the integrity of your appliances and systems. A home warranty can be purchased any time and can be negotiated when you purchase a home. Moreover, the seller or homeowner at the point of sale may transfer the warranty to the buyer along with the property. Home warranties cover damage done to the personal possessions of the homeowner: HVAC, plumbing, and electrical systems. Plus, not only is the cost for replacing certain appliances covered but the service fee.

Often homeowners insurance does not cover those components, and the cost of fixing these items wouldn’t meet the policy’s deductible.Home warranty companies have networks of professional vendors and contractors that they utilize to best serve their customers. The network of service providers within Global Home Protection’s network are professional and all pre-screened. Having readily available service providers from trusted sources ensures that the quality of the jobs are always consistent.

How Much Does Home Warranty Cost?

The cost of a home warranty plan is a couple hundred dollars for a year, normally paid upfront or in installments. This is for the average single family home but even then depending on property type, size (if more than 5,000 square feet), and whether the homeowner would like an extended warranty plan.

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Major Systems - Covers The Repair & Replacement Of System Components:

A/C systems, Heating Systems, Electrical Systems, Plumbing Systems, Plumbing Stoppage, and Water Heater.

Major Appliance Plan - Covers The Repair & Replacement Of Major Components Of Household System & Major System:

Kitchen Refrigerator, Oven/Range/Stove, Cook Top, Dishwasher, Built-in microwave, Clothes Washer, Clothes Dryer, and Garbage Disposal.

Diamond Plan - Covers The Repair & Replacement Of Major Components Of Household System & Major System:

Air Conditioning System, Heating System, Electrical System, Plumbing Systems, Plumbing Stoppage, Water Heater, Garbage Disposal, Kitchen Refrigerator, Oven/Range/Stove, Cook Top, Dishwasher, Built-In Microwave, Clothes Washer, Clothes Dryer, Ceiling Fan, Exhaust Fan, Garage Door Opener, and Whirlpool Bathtub.

At Global Home Protection you can renew your home warranty with each new year, there are no locked in contracts. Every agreement is specific to the needs of our customers, we believe there is a solution plan for every issue.

In addition to the annual service agreement there is a nominal service fee. This service fee covers the homeowners request to have a service provider come out to the property and examine the problem. Service call fees start at $45 dollars with Global Home Protection.

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How Do Home Warranties Work?

Time is precious and a home warranty can save you valuable time. Home system and appliance breakdowns always seem to happen suddenly. You end up calling multiple contractors to schedule an appointment. A trustworthy licensed contractor can be hard to find. A home warranty plan protects not only you and your family from the dangers of faulty appliances, but also protects your budget from unexpected expensive repairs. Coverage begins 30 days from enrollment and receipt of applicable agreement fees. We reserve the right to waive/reduce the 30-day grace period so long as you provide proof of prior coverage, showing no lapse of coverage, from another reputable home warranty provider.

When a covered item breaks down, request service by calling our 24 hour claims department. We will coordinate a contractor to come out to your property and examine the problem at hand. Once evaluated, the contractor will determine the estimate then we can determine whether your problem has been covered by your current plan. If covered, the contractor will repair or replace your item as per the service agreement in your annual home warranty plan. Afterward we will follow up with you to ensure that the quality of your service has been nothing less than excellent.

When To Purchase A Home Warranty Plan

You can purchase a plan at any time for your home:

  • New Construction - Many states require contractors and home builders to warranty their work when creating new homes. This assures homeowners that the home that they purchased has come with working systems guaranteed to be running long after moving in.

  • Pre-Existing Home Purchase - Buying a pre-existing home comes with a bit of wear and tear. In many cases it could be years before a certain mechanical system or major appliance had been inspected or replaced. Moving into a home with faulty heating or plumbing could spell disaster for new homeowners. Getting a home warranty on these major home goods in a timely fashion will help prevent having to deal with expensive service costs later down the road.

  • Home Sellers - Typically upon purchase and sale of a new home a realtor will include a home warranty plan with the home. Oftentimes, prior to selling the home, the realtor or homeowner will either take the policy - under penalty of law in some states - or as a gesture of good faith to assure the buyer that in case of any mishaps with the appliances on the property, the buyer/homeowners are covered.

What Does a Home Warranty Company NOT Cover?

Here at Global Home Protection we pride ourselves on being able to provide our customers with a level of protection and service that best serves their needs. When deciding to purchase a plan it is important that homeowners understand the limitations of their plans. No matter, there are certain circumstances when having a home warranty isn’t applicable.

Items with pre-existing conditions are subject to the terms and conditions laid out in your agreement made with the home warranty company. Specific home appliances and systems are not covered in the premium, this can be due to the make of the model, the type of damage done (item was placed under hazardous conditions), and/or whether the item is covered in the homeowners initial home warranty coverage plan.

Code violations can hinder you from having access to the benefits of your home warranty. Utilizing the assistance of a home inspector upon purchasing a home can help save you from a lot of huge maintenance costs. Taking care of your home means dealing with tons of wear and tear for years to come, inspecting and protecting your home from further damage is best.

Not Covered:

  • Outdoor items such as sprinklers

  • Faucet repairs, although this can vary

  • Spa or pools unless specific coverage is requested

  • Permit fees

  • Haul-aways

  • Items that were broken prior to closing

  • Exclusions noted in the policy

In some instances your home warranty company may deny coverage of your items depending on whether you have breached the policy.

Improper maintenance is a primary reason that you may not be able to have a claim covered. Mishandling items in ways that go against their intended purpose is considered the improper maintenance of an item.

Are Home Warranty Plans Worth It?

The Benefits of a Home Warranty Plan

Appliances and major systems break down all the time. This cannot be avoided by any homeowner or seller. The high cost of repair or replacement can be avoided with Global Home Protection. Unlike the warranty you receive from the manufacturer’s warranty, a home warranty covers the cost of labor or repair.

Here are some of the benefits of owning a Global Home Warranty Plan:

Save Money – Avoid paying for repair or replacement of your appliances and home systems each time they break down or malfunction. The cost of repairs for an HVAC system can range from a few hundred dollars to upwards of a thousand dollars. For larger repairs such as fixing a refrigerant leak or evaporator coil, expect to spend $200 to $1,500. A home warranty plan can save you on the cost of the repair and replacement.

Peace of Mind – Rest assured that your home appliances and systems are fully covered for repair or replacement. You are covered for breakdowns due to normal wear and tear. With Global Home Protection. You can simply call our 24/7 claims department at 1(877) 660-1621 and we will dispatch a licensed and bonded service contractor to your home SAME DAY!


Customization – With Global Home Protection you don’t have to pay for coverage you don’t need. Customize your plan and only pay for the coverage that applies to your home. Every homeowner has different needs, what may work for one may not work for the other. Whether you need your appliances under warranty or your heating and cooling systems, Global Home Protection plans are customizable. Service Agreements are annual and are renewed with each new year, with plans starting at 1 year and extended beyond there is a plan to suit every buyer and seller.


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Key Takeaways:

When deciding whether you need a home warranty plan there are a few key things to consider before making an informed decision

  • Home warranty companies primarily cover appliances and other major home systems.

  • Some states require you to have a warranty before selling the property

  • There are pre-packaged plans but you can negotiate your plan with the home warranty company you are getting your plan from or ask your realtor.

  • Home warranty plans do not cover pre-existing conditions to any appliances or major systems. It is best practice to have any major home appliances and systems inspected before you move into a pre-existing home.

  • If you are concerned about the maintenance of your home, getting a home warranty can be a huge asset during unexpected defects in your home’s systems and appliances. Nothing beats the peace of mind you will get when your stuff has been repaired and/or replaced.