A home warranty (also known as a home protection plan or home service plan) is a contract that provides repair and replacement coverage for your home’s major appliances or systems. A home warranty service contract provides insurance against malfunctions or breakdowns due to normal wear and tear.

Many people make the costly mistake of believing that their insurance provider will cover these types of repair costs or replacements. But homeowners insurance pays for losses or damages incurred from unforeseen occurrences. A home warranty actually complements homeowners insurance by providing the most comprehensive coverage to limit out-of-pocket expenses.

Cinch’s customizable home warranty plans help protect your major home systems, such as air conditioning, heating and plumbing systems. You may also protect your major appliances, such as your stove, oven, and water heater and more.

Homeowners often buy home warranties because they are a cost-effective way to ensure essential appliances and built-in systems stay up and running. This kind of peace of mind is important when the costs to replace a malfunctioning item can run into the hundreds or thousands of dollars. If your budget is tight and you don’t have DIY skills for repairs and installation, signing a home warranty contract makes a lot of sense.

In addition, when you buy a new appliance, it usually comes with a manufacturer’s warranty that’s valid for a set length of time. The standard coverage varies depending on the appliance and manufacturer but could be anywhere from six months to a year. After the warranty expires, your appliance is left unprotected, and it’s your responsibility to pay for repairs or replacements.

Whether you are purchasing your first home or are a long-time homeowner, it makes financial sense to consider a home warranty plan in addition to your insurance policy.

Here are some key reasons:

• Home warranty plans cover situations that insurance doesn’t.
• Investing a few hundred dollars in a warranty can save you thousands in up-front repair costs.
• A warranty company sends a vetted, licensed service provider to your home as soon as you file a claim, saving you the time and stress of arranging one yourself.
• A home warranty plan offers peace of mind that your home is covered no matter what kind of breakdown occurs.
• For home sellers, offering a prepaid one-year home warranty can serve as a selling point for potential buyers.

Different home warranties may cover different sets of home appliances or built-in systems. Below are are just a few of the items that a Cinch plan covers:

• Built-in dishwashers
• Refrigerators
• Built-in microwaves
• Wall ovens
• Clothes washers and dryers
• Plumbing system
• HVAC system
• Electrical system
• Heating system
• Water heater

Generally, these plans cover a mechanical breakdown from routine use, sometimes referred to as “normal wear and tear.” This means that mechanical parts, such as motors and switches, and parts like knobs and handles are covered.

You can choose from a variety of options when choosing a home warranty plan, but plans that cover more will cost more. Cinch Home Services offers a Complete Home plan that provides warranty coverage for 29 items in the home.

There are many home warranty companies available. Some things you’ll want to consider when deciding on a company include what optional coverage options they offer depending on your needs and how many years of experience they offer.

Most home warranty companies offer different home warranty plans. It’s not a one-size-fits-all type of industry because each home and homeowner has unique wants and needs. A home warranty company typically has three types of plans. One for major appliances, one for built-in systems and a complete home option that covers both.

Choose a home warranty provider, like Cinch, that also offers excellent customer service and has a clear contract explaining what it covers. Cinch offers an easy-to-read explanation of the terms of our home warranty. There is no hidden fine print.