What is a residential service contract?

A residential service contract, also known as a home warranty, is a service agreement that covers the repair or replacement of major household systems and appliances that may break down due to normal wear and tear. These contracts typically last for a set period of time, usually one year, and can be renewed annually.

Residential service contracts can provide peace of mind to homeowners by helping to cover the cost of unexpected repairs or replacements. They can cover a variety of items such as HVAC systems, plumbing, electrical systems, kitchen appliances, and more.

Before purchasing a residential service contract, it is important to carefully review the terms and coverage options to ensure that it meets your needs. Some contracts may have certain exclusions or limitations, so it is important to understand what is and is not covered.

Overall, a residential service contract can be a valuable investment for homeowners looking to protect their budget from unexpected home repairs.