What is Home Warranty? Guide for Homeowners

03 APRIL, 2025

Owning a home is one of the happiest moments of anyone’s life, but it comes with responsibilities. Be it broken roofs or leaky drainage systems, such damages and repairs can make a hole in your pocket. Meet home warranty - a safety net to protect your home appliances and systems when things do not go in your favour.

The million-dollar question: what is home warranty, and how does it benefit you? This solution can save you money, time, and stress when the refrigerator breaks down or the geyser starts to throw tantrums. So, if you want to know home warranty meaning, whether they are worth it, and how they work, read this blog. Understand how a home warranty will change your home protection, and let your wallet thank us.

What is Home Warranty?

An incredible legal tool, a home warranty provides financial aid to cover the cost of repair and replacement of home appliances and systems. From plumbing and electrical repairs to appliance and HVAC system replacements, it adds a layer of protection to your home from unexpected hassles.

Unlike insurance, which only covers environmental damages, a home warranty is all about repairs and maintenance. Some of the commonly covered areas are plumbing systems, heating devices, home appliances, and more.

Is a Home Warranty Worth It? Discover the Unexpected Benefits

Homeownership is an adventure, but it does not have to be a stressful one. Here is how a home warranty can help keep things running smoothly:

Peace of Mind During Unpredictable Situations

Every house owner understands that having a home is expensive. In everyday life, there is always a likelihood of a microwave giving up or air conditioning not delivering effective cooling. With an adequate home warranty at your disposal, you can have access to repair or replacement funds and trusted service providers when things go wrong.

For example, think one morning you came back from yoga only to notice that your centralised geyser isn’t acting up. Instead of panicking, you place a request to your home warranty provider for repair. The result? No hassle of finding a technician and hefty bills.

Affordable Repairs and Replacements

Is your washing machine not performing well, and is buying a new one impacting the budget? This is where a home warranty helps. All you need to do is pay a small annual fee as a premium for the warranty, and in return, it rewards you with coverage for the repair and replacement of home appliances and systems.

Further, imagine you have just signed a Kotak Mahindra Bank home loan agreement, and soon after you shifted to the apartment, your microwave broke. With loan EMIs, replacing or repairing the microwave is difficult. However, a homeowners warranty can save your day and fix the problem.

Increased Home Value and Marketability

When it comes to selling your home and demanding a good price, a home warranty magically boosts the value, making it a potential buy for people. Plus, knowing that your air conditioner, oven, heating system, plumbing devices, refrigerator, and more are already covered makes buyers close the deal faster.

A home warranty is an incredible USP, particularly in metro and metropolitan cities where homebuyers are inclined towards added assurances. After all, who does not want to save on repair, maintenance, and replacement costs of major home appliances?

The Magic Behind Home Warranties: Understand They Really Work

Now that you have a clear picture of home warranty meaning, let’s take a look at how it will help when your appliances actually call it a quit.

A Step-by-Step Process

A home warranty is nothing but insurance for your home appliances and systems. Follow the below steps to use it.

Step 1: Identify the problem: If your refrigerator or washing machine has stopped working, learn the reason. Why? Because the homeowners warranty does not cover accidental damages.
Step 2: Call the Warranty Provider: Reach out to your service provider and highlight the issue. Some providers also allow you to report the issue directly through online portals.
Step 3: Diagnosis and Repair: Once your report has been submitted, the provider will verify your details and send a professional for assessment and repair.
Step 4: Payment and Closure: After the repair or replacement, you are required to pay a small service fee to close the claim.

Know the Costs Involved

Like any other policy, a home warranty also has a few price tags. Some of them are:

Service Fee: Every time your service provider sends a technician to repair or replace the appliance, they charge a nominal fee. It depends on the type of service and damage.
Premium: Are you paying an annual or monthly fee to renew your warranty? This is known as premium. It is determined based on the coverage, type of appliances, and location of your house.
Additional Costs: Usually, homeowners warranty covers everything; however, it is quite likely that some charges, upgrades, and parts are not covered.

Timeframes for Repairs and Replacements

When it comes to putting your daily wonders back to work, time is the key. The good part? Most service providers offer urgent repairs within 24 hours of filing the claim. If the issue is less immediate, it may take up to 3 to 5 business days. Plus, replacements take up to 7 working days for delivery and installation.

In a Nutshell

Before you sign on the home warranty, make sure you know everything about the terms and coverage of your home warranty. It’s an investment in peace of mind, but only if it suits your needs. So, do your research and take the right warranty to keep your home (and yourself) away from unexpected expenses.