Product Overview: Home & Utility Insurance

Home & Utility Warranty Insurance from AmTrust Warranty & Specialty Risk

AmTrust Warranty & Specialty Risk’s home and utility warranty programs protect against the financial challenge of failing home systems and expensive repairs with enhanced coverage bundles to meet varying partner and market needs. 


What is Home & Utility Warranty Insurance?

A home warranty is a policy a homeowner pays for that covers the cost of repairing home appliances and utility systems, such as water, gas, sewer, or electric if they break down during homeownership. Home warranties offer homeowners the financial protection and safety of knowing that unexpected problems with their appliances and critical systems, such as HVAC, electrical and plumbing, can be dealt with without significant out-of-pocket expenses. 

Benefits of Having a Home & Utility Warranty Policy

Saving money on expensive repairs.

Homeowners typically pay less overall for repairs and replacements, especially when costly appliances and utility systems are involved. Home warranties offer protection from unexpected repair costs.

Access to skilled service contractors.

Home warranty companies use a network of contractors that can be dispatched for repairs in case of a claim. This is helpful for homeowners who might not be handy or don’t have a regular contractor.

Coverage for breakdowns from normal wear and tear.

On average, consumers place two and a half claims per year, and over half of homeowners had a home repair emergency in the past 12 months.

What is Covered Under a Home & Utility Warranty?

Residential and Commercial Properties 

Modular and Manufactured Homes 

Home & Utility Warranty Coverages

There are many types of Home & Utility coverages plans, including:

  • Home Warranty Protection Plan 
  • Appliance Protection Plan 
  • Smart Home Protection Plan 
  • Utility Protection Plan 
  • Service Provider Payment Protection (SPP) 
  • Electronics Protection Plan​ 
  • Service Provider Payment Protection (SPP) 
    • The SPP pays the customer’s monthly service bill charge for a specified period in the event of accidental loss of life, disability, or involuntary job loss 
Frequently Asked Questions About Home & Utility Warranty Insurance
Is a home & utility warranty necessary?
Purchasing a home warranty depends on the homeowner’s circumstances and risk tolerance. When considering purchasing a home warranty, homeowners should evaluate the cost of the warranty, the age and condition of the home, utility systems and appliances, and their financial ability to handle potential repairs before ultimately deciding if the policy is necessary.  
What is the difference between homeowners insurance and a home warranty policy?

See the differences between a home warranty and a homeowners policy below:  

Home warranty insurance: 

  • Covers damage due to normal wear & tear 
  • Covers home lines, systems and appliances such as HVAC, electrical, plumbing, gas, water, sewer, major appliances, thermostats, etc.  
  • Is helpful if you have old appliances and systems in your home 

Homeowners insurance: 

  • Covers damage caused by unforeseen circumstances such as calamities, accidental damage, etc.  
  • Covers structural property, personal belongings, provides liability protection 
  • Covers contents of the house, personal property, such as jewelry, electronics, furniture or clothing 
  • Covers events like theft, fire, falling objects and liability claims  
How does home warranty coverage work?

Homeowners pay a monthly or yearly premium to maintain their home warranty coverage. When a covered item in the home needs to be serviced, repaired, or replaced, the homeowner submits a claim to the program administrator. The administrator takes the call and determines the next steps. A licensed and insured service provider is then dispatched to the home to investigate and, when needed, provide repair or replacement to resolve the claim. In this process, the homeowner is protected from paying for the unforeseen costs related to the breakdown. Depending on the coverage, some programs may require the homeowner to pay a small deductible. 

What does a home warranty cover?

A home warranty generally covers major systems and appliances throughout the house. The coverage varies by company and plan, but a typical home warranty can cover any of the following: 

  • Heating, ventilation and air conditioning system (HVAC) 
  • Gas line 
  • Electrical system (interior or exterior) 
  • Plumbing and drainage system 
  • Water service line 
  • Sewer/septic system 
  • Water heater 
  • Appliances, such as fridge/freezer, stove/oven/range, built-in dishwasher, built-in microwave, garbage disposal, built-in trash compactor 
  • Washer and dryer 
  • Garage door opener 
  • Coverage for pools, spas, well pumps 
  • Smart thermostats 
  • Surge coverage 
How much does automotive warranty coverage cost?

The cost of a home warranty will vary by company and coverage plan. When considering a home warranty, homeowners should list the home’s major appliances and systems, their ages, and which are most at risk of breaking down or needing replacement. Then, the homeowner can decide which home warranty would best meet their needs. 

On average, a home warranty costs around $25-$150 per month. However, there could be additional charges for optional add-ons, deductibles (anywhere from $50-$200), and service fees (typically $60-$100 each time a technician comes to your home). If a major repair or replacement item is needed, such as an HVAC system that can cost anywhere from $5,000 to over $12,000 to replace, sometimes a home warranty can practically pay for itself.  

Should I have both homeowners insurance and home warranty coverage?
Home warranties and homeowners insurance can provide comprehensive protection for your home and property. These services will help you save on expensive repairs and replacements, protect your valuable assets, and, most importantly, give you peace of mind. 
Where can I buy a home warranty?
Take the time to research home warranty companies before you purchase a policy. There are many home warranty companies, but finding the right one for your needs is essential. Real estate brokers or home inspectors often recommend their home warranty partners during a home purchase.  
When should home & utility warranty programs be purchased?
Home warranty programs can be purchased at any time, no matter the age of the home, appliances or utility systems. Most often, these policies are purchased at the time of a home purchase, especially if there are older appliances in the home that are no longer covered by manufacturer warranties.  
What is not covered under a home warranty policy?
It is important to read the policy to understand what is not covered under a home & utility warranty program. Home warranties do not cover “improperly maintained” items – and the warranty company has the discretion to define what that means – and items with pre-existing conditions also are not typically covered. Extensive damage could mean out-of-pocket expenses for the homeowner, or the warranty may only cover repairing items rather than entirely replacing them. 

Contact AmTrust Warranty & Specialty Risk for Home & Utility Warranty Programs

To learn more about our home & utility warranty insurance coverage options, please contact AmTrust Warranty & Specialty Risk today.