Image: americanresidentialwarranty.com
Warranties are very useful for covering the costs of repairing furnaces, air conditioners, water heaters and water softeners. These major installations are expensive to purchase and service. However, homeowners might have the appliances repaired for only a small fraction of the cost by buying a household warranty package. In a sense, such a plan is like an insurance policy for things that need to get repaired sometimes. By contrast, a home insurance only covers the structures of a home such as roof, foundation, walls and ceilings.