Home warranties are service contracts that cover the repair or replacement of various appliances and systems within a home, such as HVAC, plumbing, and electrical systems. When a covered item breaks down, the homeowner contacts the warranty company, which then dispatches a contractor to diagnose and repair or replace the item. The cost of the repair or replacement is typically covered by the warranty, with the homeowner paying a deductible or service fee. Home warranties typically have limitations and exclusions, so it is important to read and understand the terms and conditions of the contract before purchasing.
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