 TITLE: What Is a Home Warranty Plan? CONTENT: How Does a Home Warranty Plan Work?\n-----------------------------------\nA home warranty is an agreement for \"the service, repair or replacement of major, built-in household appliances and systems on existing homes due to normal wear and tear,\" according to The National Home Service Contract Association (NHSCA), a nonprofit association for home service contract providers.\nHomeowners insurance protects you from liability and your home's structure and contents from perils such as fire and theft. It doesn't cover normal wear and tear on your home or its systems, however. Home warranties do, which is why they are often promoted as a complement to homeowners insurance.\nTo give you peace of mind when you buy an existing home, sellers often throw in a home warranty. When the warranty that came with your home runs out, you may choose to renew it. You can also buy a home warranty on your own at any time from a variety of providers.\nIf an appliance or system covered by your home warranty fails, you'll contact the home warranty company, which sends out a local service company. You'll pay a service fee, generally ranging from around $35 to $100 depending on your contract. If the repair person and the insurer determine that the problem is covered by your warranty, the home warranty company pays for repair or replacement up to the limits of your policy. END