What is so great about a home warranty plan?

When something goes wrong in your home, wouldn't you like to know that all you have to do is call a single number to have the problem fixed? And, whether it's a plumbing, electrical or appliance-related problem, wouldn't it be nice to have it taken care of for a preset fee?

Homeowners insurance usually doesn't cover the cost of repairing systems and appliances. Typically, the homeowner pays the entire costs, including labor, parts, and often, travel time. For example, have you ever tried to get a plumber on a holiday or weekend?

Home warranty coverage is a plan that protects you against the cost of these types of replacements and repairs in your home, which usually crop up at the most inconvenient times. You don't even have to be a new homeowner to qualify. Plans vary, but most homes' heating, plumbing and electrical systems are covered, as well as built-in appliances like kitchen ranges, garbage disposals and dishwashers. For an additional cost homeowners can often add refrigerators, whirlpool baths and even washers and dryers to the coverage.

If you have a problem with one of the covered items you need only call the toll-free number and the plan issuer will send out a qualified technician to fix it. You don't have to pay for travel time, parts or labor no matter the problem, you pay your fixed fee. Of course, if you have a major pre-existing condition, for example, if your heating system hasn't worked for years, it won't be covered. Most plans also exclude such services as asbestos removal, so read the plan carefully. Enrollment is easy and there is no home inspection required prior to the purchase of the home warranty.

Learn more about Home Warranty Plans.

See also:

• Estimated costs of home system and appliance replacement
• Power surges: How to protect valuable electronic equipment
• Home alone - protecting your home
• How to handle a kitchen fire

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• Homeowners insurance
• Condo/Townhouse insurance
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Quick Tip # 8

When you calculate your life insurance needs, don't forget to include the costs of caring for an elderly relative if you think that is a possibility in the future.

See: Your life insurance needs