Home warranties, also known as residential service contracts, cover the repair and replacement of certain systems or appliance that fail due to normal use during the term of the contract.
A home warranty is different from insurance in that it doesn’t insure against losses. It only covers items specified in the contract that need repair or replacement due to normal use.
In Texas, annual contract fees generally run $365 to $395 for standard coverage, but most companies offer upgrades or optional coverage for additional fees.
Typically, a residential service provider charges a flat fee for a request for service, about $65 to $100 per request.
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