Service plan, insurance and other warranties

These three things are often confused. They pay for different events.

Home service plan

Pays for repair or replacement of covered systems and appliances that fail from normal wear. It is a separate purchase with its own start date, fee, limits and exclusions.

Homeowners insurance

Pays for sudden damage such as fire, storms and certain kinds of water damage, depending on your policy. A home plan does not replace it, and standard policies generally do not cover flood or earthquake.

Builder or manufacturer warranty

A new home or a new appliance may still carry its own warranty. Check those dates first, since they may cover the same repair.