Often called a home warranty, this type of plan is generally a service contract — not homeowners insurance. It may help with repair or replacement costs for certain covered systems and appliances when they break down from normal use, subject to the contract terms.
Important: Home systems and appliance protection plans are not homeowners insurance. They do not replace homeowners insurance and do not provide dwelling, liability, personal property, or loss-of-use coverage. Plans may be offered by third-party providers and may include exclusions, limits, service fees, waiting periods, and eligibility requirements. Always review the actual contract before purchase.
These are different products that serve different purposes. Understanding the distinction helps you avoid gaps and confusion when something goes wrong.
| Category | Homeowners Insurance | Home Systems & Appliance Protection |
|---|---|---|
| Product type | Regulated insurance policy | Non-insurance service contract |
| What it addresses | Covered losses such as fire, wind, theft, liability, and certain property damage | Breakdown of covered systems and appliances from normal use |
| What it may include | Dwelling, personal property, liability, additional living expenses | HVAC, plumbing, electrical, appliances listed in the contract |
| Process | Insurance claim process, subject to deductible and policy terms | Service request; provider sends technician or reimburses, subject to service fee and contract terms |
| Typical exclusions | Normal wear, mechanical breakdown, flooding (separate policy needed) | Pre-existing conditions, improper installation, cosmetic issues, code upgrades |
| Does it replace the other? | Does not cover system/appliance breakdowns | Does not replace homeowners insurance |
This table is for general guidance only. Review your actual insurance policy and service contract for terms, exclusions, and limits.
Two levels of protection are available. Both plans include a $75 service fee per service request and a $10,000 limit of liability per year of contract. Plans are transferable. Optional add-ons are available on both levels.
Refer to the actual service contract for complete terms, conditions, and exclusions. This page is a summary only and is not a contract.
| System or Appliance | Core Plan | Complete Plan |
|---|---|---|
| Home Systems | ||
| Air Conditioning / Heating | ✓ | ✓ |
| Electrical System | ✓ | ✓ |
| Plumbing System | ✓ | ✓ |
| Duct Work | ✓ | ✓ |
| Kitchen Appliances | ||
| Kitchen Refrigerator | ✓ | ✓ |
| Dishwasher | ✓ | ✓ |
| Range / Oven / Cooktop | ✓ | ✓ |
| Trash Compactor / Garbage Disposal | — | ✓ |
| Built-In Microwave | — | ✓ |
| Free-Standing Ice Maker | — | ✓ |
| Laundry & Home Features | ||
| Clothes Washer / Dryer | ✓ | ✓ |
| Garage Door Opener | — | ✓ |
| Ceiling Fans | — | ✓ |
| Smoke & Carbon Monoxide Detectors | — | ✓ |
| Doorbell | — | ✓ |
| Attic & Exhaust Fans | — | ✓ |
Depending on eligibility and availability, the following may be added to either plan:
Eligibility: Single family homes up to 10,000 sq ft, Duplex, Triplex, Quadplex. Plans are transferable. Refer to the service contract for complete terms.
Service contracts vary significantly by provider and plan. Review the actual contract for the following before purchasing:
Systems or appliances that were already broken, malfunctioning, or improperly maintained may not be eligible.
Items not installed to code or manufacturer specifications are commonly excluded.
Scratches, dents, discoloration, and aesthetic damage are typically not covered.
Costs to bring a repair up to current building code, or required permit fees, are often excluded.
Some plans cap replacement cost at a set dollar amount. The plan limit of liability applies per year of contract.
A service fee is charged each time a service request is submitted, regardless of outcome.
Some plans include a waiting period after purchase during which service requests may not be submitted.
Some plans require repairs to be performed by provider-approved technicians. Confirm before scheduling your own contractor.
Only items specifically named in the contract are eligible. The contract controls what is and is not included.
First-time homeowners who want predictable service-call handling for systems and appliances.
Owners of older homes where systems and appliances are past manufacturer warranty.
Buyers after closing who want some protection against early system or appliance failures.
Sellers who want to reduce repair friction during or after a transaction.
Homeowners who prefer not to coordinate every repair themselves and want a defined service request process.
A protection plan is not a guarantee of savings or repair outcomes. Review the contract carefully to understand what may and may not be included.
We help you understand whether a home systems protection plan fits alongside your homeowners insurance. We can explain what is insurance, what is not insurance, what the plan may include, and what limitations to review before you buy. We keep the two products clearly separated so you know exactly what you are considering.
Looking for homeowners insurance? Compare Michigan homeowners insurance options here.
Request Protection Plan OptionsNo. A home warranty, home service contract, or home systems protection plan is not homeowners insurance. Homeowners insurance is designed for covered losses such as fire, wind, theft, liability, and certain property damage. A home systems protection plan may help with certain repair or replacement costs for listed systems and appliances, subject to the contract terms.
No. A home systems protection plan does not replace homeowners insurance, mortgage-required insurance, liability coverage, dwelling coverage, or personal property coverage.
No. Unless specifically stated otherwise by a licensed insurer, these products are generally non-insurance service contracts or protection plans. The plan is a contract between you and the plan provider — not an insurance policy.
It depends on the plan level. The Core Plan may include HVAC, plumbing, electrical, duct work, refrigerator, dishwasher, range/oven/cooktop, and washer/dryer. The Complete Plan adds garbage disposal, built-in microwave, garage door opener, ceiling fans, smoke and CO detectors, and more. Optional add-ons are available on both plans. The contract controls what is and is not included.
A service fee is charged each time a service request is submitted — separate from the plan cost. The service fee for available plans is $75 per service request. This fee applies regardless of whether the request results in a repair.
Yes. Requests may be denied if the item is excluded, not listed in the contract, improperly maintained or installed, subject to a pre-existing condition, outside plan limits, or otherwise not eligible under the contract terms. Always review the actual contract.
Available plans carry a $10,000 limit of liability per year of contract. Optional add-ons include the ability to double the limit for specific systems such as AC, heating, plumbing, and electrical. Review the contract for full details.
Yes. Clutch Risk can help separate the two products so you understand what belongs in homeowners insurance and what may fall under a non-insurance protection plan. Learn about Michigan homeowners insurance here.
Disclosure: Home systems and appliance protection plans are not homeowners insurance. They do not replace homeowners insurance and do not provide dwelling, liability, personal property, or loss-of-use coverage. Plans are offered by third-party providers and may include exclusions, limitations, service fees, waiting periods, provider network requirements, and eligibility rules. Some features may not be available in all states. The $75 service fee and $10,000 annual limit of liability apply per plan terms. Refer to the actual service contract for complete details, terms, and conditions. This page is a summary only and is not a contract. Programs are subject to change. Clutch Risk is a Michigan licensed insurance agency (Agency NPN: 22231445 · Michigan System ID: 0161332). Insurance products and non-insurance protection plans are separate offerings.
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