A Home Service Agreement Program, often referred to as a home warranty or home protection plan, is a service contract that covers the repair or replacement costs of household systems and appliances that may break down over time due to normal wear and tear.
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These programs are designed to provide homeowners with peace of mind by reducing the financial burden of unexpected home repairs. Here are some key components and considerations of a typical home service agreement program:
Key Components
Covered Systems and Appliances:
Systems: HVAC, plumbing, electrical systems, water heaters, and ductwork.
Appliances: Refrigerators, dishwashers, ovens, washing machines, dryers, and garbage disposals.
Exclusions and Limitations:
Certain conditions, pre-existing issues, and specific components may not be covered.
There might be a cap on the amount that can be claimed for each repair or replacement.
Service Fees:
Homeowners typically pay a service call fee or deductible each time a technician is dispatched to their home for a repair.
Contract Terms:
The length of the contract, which is usually one year, renewable annually.
By selecting the right home service agreement program, homeowners can manage repair costs more effectively and avoid the stress of unexpected breakdowns.
