 TITLE: What Is a Home Warranty Plan? CONTENT: Benefits and Drawbacks of Home Warranties\n-----------------------------------------\nHome warranties have some potential benefits. If your problem is covered, the home warranty company will pick up most of the bill—you'll just need to pay the service fee. A home warranty can also provide a \"one-stop\" solution to home repairs. Instead of searching for an electrician or plumber on your own, just call the home warranty company to have it taken care of.\nHowever, home warranties also have some drawbacks.\n*   **Caps**: Companies may cap coverage for each item at a certain dollar amount, which may not be enough to cover the cost of replacement or repair.\n*   **Restricted options**: The home warranty company selects the contractor used for diagnosis and repair; in most cases, you can't choose a contractor yourself.\n*   **Service fees**: You'll pay a charge for the service technician, even if the warranty claim is ultimately denied.\n*   **Limited reimbursement**: Some home warranties cover only the current, depreciated cost of an item, not its full replacement value. When appliances or systems are replaced, it will be with a comparable model, which may not be the same make or model you had. If a 10-year-old appliance breaks down, you might prefer to replace it with the latest model (with all the bells and whistles), but you generally won't have that option as part of your warranty.\n*   **Exclusions**: Home warranties typically have many exclusions. For example, a covered problem with your heating system might be denied unless you have documentation that maintenance was regularly performed according to the manufacturer's specifications. A plan that covers your refrigerator may not cover the fridge's icemaker. END