The USA home warranty industry was founded back in the 1970s when the real estate market experienced steady growth. During this period, newly emerged companies began to offer home service contracts, which are known today as ‘warranties.’ Such offers quickly gained popularity among homeowners.
Today, millions of these warranties are sold every year in the U.S. These home warranty plans cover the repairs of major home systems and appliances. Home systems include electrical, plumbing, heating, and air conditioning. Home appliances that are included in this form of insurance include ovens, built-in microwaves, refrigerators, dishwashers, and so on.
The contractual limitations in the U.S. include the number of covered units, their size, and location. Some providers limit dollar amounts per home system, and others have an overall limit per contract period. Once the limit is reached the company will no longer pay for any repairs or replacements.