A home warranty policy is a detailed service contract outlining the terms and conditions under which a warranty company will repair or replace covered home systems and appliances.
The policy document specifies covered items, coverage limits, service fees, claim procedures, and exclusions. It defines the warranty company's obligations, homeowner responsibilities, and conditions that might void coverage. Typical policies include sections on coverage duration, renewal options, cancellation terms, and transfer rights. The document details maintenance requirements, pre-existing condition policies, and procedures for emergency services. Understanding policy terms is crucial as they govern claim approvals, contractor selection, and payment responsibilities. Every policy includes specific definitions of covered failures, maximum payout limits, and circumstances under which coverage applies.
