A home warranty is a Plan Agreement that helps homeowners reduce the costs of addressing covered breakdowns to covered home systems and appliances.
Home warranty coverage is a valuable tool you as a homeowner can use to protect your budget. It offers three main benefits:
- Financial protection if you face covered repair or replacement costs for your home’s covered appliances and systems
- Manageable, affordable way to cover the cost of bringing in a service contractor to address the issue
- Peace of mind in knowing covered breakdowns won’t wreck your budget
Let's look at why a home warranty is important, how a home warranty works, and why you should have one.
Why is a Home Warranty Important?
A home warranty is important because it can help homeowners prepare for unexpected, expensive, covered breakdowns that home insurance doesn't cover.
For example, if your furnace or A/C unit break down from routine use, your homeowners insurance policy won’t cover it. If you don’t have a home warranty, you could be on the hook for the costs of repairing or replacing those vital systems.
With a home warranty plan, you could reduce those costs by paying a smaller, more manageable service fee—a small, out-of-pocket expense you pay to your Pro to diagnose the problem in person.
How does a home warranty work?
Here’s a quick, five-step rundown of how a home protection plan works.
1. Purchase coverage and set up your account.
2-10 Home Buyers Warranty (2-10) offers several plans. Once you decide which home protection plan works best for you, your budget, and your peace of mind, you then create an account that lets you review coverage, update information, and more.
2. Request service online as needed
When a covered item breaks down, you can ask for service conveniently, right from your account.
3. 2-10 assigns a Pro
Once you’ve requested service, 2-10 assigns you a qualified, independent repair Pro. That Pro will then work with you to set an appointment where they will diagnose the problem.
4. 2-10 reviews your home warranty coverage
Once the Pro has assessed the situation, 2-10 Home Buyers Warranty will review their diagnosis, determine your home warranty coverage eligibility, and authorize a repair or replacement of the item.
5. Enjoy peace of mind.
You can relax knowing you have affordable coverage for covered breakdowns.
It’s important to note that while the process of filing a service request is similar to filing a homeowners insurance claim, home warranties are very different from homeowners insurance policies. Learn more about the difference between a home warranty and homeowners insurance.
How Does Home Warranty Coverage Save You Money?
Repairing or replacing your home’s systems and appliances can really do a number on your budget with varying repair or replacement costs*:
- AC Repair/Replacement: Up to $6,000
- Water Heater Repair/Replacement: Up to $1,800
- Refrigerator Repair/Replacement: Up to $1,800
- Oven Repair/Replacement: Up to $1,200
With active 2-10 home warranty coverage, you could reduce those costs to a much smaller service fee.
*Repair/replacement cost is the eightieth percentile as reported in a nationwide survey of homeowners conducted in 2024 by ClearVantage for Frontdoor, Inc
What is a home warranty going to cover?
Generally, a home warranty offers coverage for home’s major systems and appliances under your yearly service agreement. This could include your HVAC system, plumbing system, electrical system, and major kitchen appliances, with additional coverage options available.
However, there are a few things to note about home warranty coverage:
- It does not cover damage caused by things like fire, theft, or weather. That's why it's important to have a home warranty and home insurance.
- It will not cover secondary damage caused by a covered breakdown. For example, if your dishwasher leaks and warps your floor, your home warranty doesn't cover floor damage.
- There are coverage limits and exclusions in all home warranty coverage. 2-10 works hard to make it easy to understand these limits and exclusions.
For more details on home warranty coverage, you can explore our blog:
Let’s review
- Home warranty coverage offers budget protection when covered systems and appliances experience covered breakdowns.
- It’s an affordable way to prepare for expensive, covered breakdowns.
- A home warranty can provide access to a network of quality, independent repair Pros
- Your 2-10 home warranty offers peace of mind.
Purchase 2-10 Home Warranty Coverage
Homeownership is expensive as it is. Don’t let covered breakdowns bust your budget. Get a free quote for a 2-10 home warranty.
