Home warranty glossary

Additional coverage

Also referred to as optional coverage. For an additional small, monthly cost, other home items, such as a pool, spa, well pump and septic tank, can be covered under your home protection plan.


Also known as home protection plan or home service plan. Defined as items designated by the manufacturer, manufactured and primarily marketed for installation and use in commercial operations.


Similar to an insurance deductible, this is your share of a covered repair or replacement event, not including any non-covered charges or amounts over caps and limitations that may apply, which is generally collected at the time of a service request. Most plans offer multiple deductible options, so you can choose to pay more per month for the plan and have a lower deductible; or vice versa.


Defined as items designated by the manufacturer, manufactured and marketed solely for installation and use in a residential, single-family dwelling.

Home warranty

Defined as a yearly service contract that covers the unexpected repair or replacement of home systems and major home appliances when they break down.

Item examples

Includes air conditioning unit, heating unit, water heater and individual appliances, such as refrigerator, dishwasher and ceiling fans.

Item lifetime

Defined as the total time for which an item is technically designed to operate from its date of purchase and is expressed in years.

Mechanical failure

Occurs when a covered item becomes inoperable and unable to perform its primary function, subject to the limitations and conditions of this agreement.

Necessary or required upgrade

Is a replacement improving a manufacturer's specification; energy efficiency; or system performance due to external circumstances (such as inability to obtain parts/equipment or government mandated system modifications).

Proper operating condition

Means the covered item was correctly located within the home, was properly installed to code at the time of installation, was fully connected, was capable of successfully performing all operations commensurate with the manufacturer’s original design intention and did not pose any hazard to life or property.

Simple mechanical test

Means the ability to turn the unit off and on and verifying the item operates without irregular sounds or smoke that may indicate a problem. In certain instances, we may require documentation from you during a claim review.

Visual inspection

Means viewing an item to verify that it appears structurally intact and without damage or missing parts that would indicate it is inoperable.