when an appliance or system is damaged the homeowner contacts the home warranty provider the warranty company usually works in unison with one or more home service providers such as plumbing or electrical contractors after being notified of a claim the warranty company requests the services from one of its partnered providers who will assess the damage and subsequently provide a report to the warrantor 
the assessment report reveals the extent and potential causes of damage to the appliance the home warranty company confirms if the policyholder s contract covers the appliance or system for the assessed damage if approved the warrantor employs the contractor to repair or replace the system a home warranty plan sometimes called a residential service contract usually covers major appliances such as water heaters stoves and refrigerators it may also include systems such as hvac plumbing and electrical it is imperative to read the fine print of a warranty document to understand coverages and exclusions while some warranties cover garage door openers as part of the basic coverage plan others may require additional premiums although it is possible to purchase additional coverage for a home feature not available with basic coverage it is also likely that some warranty companies do not cover specific components of a home for example some home warranty companies cover outdoor pools or spas for an additional premium to the policy whereas other companies may not warranty a pool on their offerings a new service fee will apply to each feature or system scheduled for maintenance for example if a homeowner s oven and refrigerator are faulty they will pay the contractor two separate trade fees these costs may run between 55 to 150 2home warranty vs home insurancewhile a home warranty bears a resemblance to home insurance policies in terms of premiums deductibles claims and liabilities they each offer different services home warranties maintain the functionality of household systems which can break or wear out home insurance on the other hand covers damage to or loss of the home itself that may be due to fire or certain other natural disasters 