A home warranty is a great supplement to your home insurance policy, covering items that most standard home insurance policies don’t, and filling a critical gap in the protection of your home. People often confuse the functions of home warranties with home insurance. Home insurance usually covers losses occurring to one's home and its contents, as well as liability for accidents that may happen at the home.
A home warranty is a service contract that covers the repair or replacement of specified household systems and appliances that fail due to normal wear and usage. For example, if your dishwasher leaks and water damages the floor, your home insurance may cover the damage to the floor, but not the repair or replacement of the dishwasher. With the AAA Home Warranty Plan, your dishwasher is covered.