Warranty Insurance: Definitions & Articles

What Is Warranty Insurance?

In insurance, a warranty is an ambiguous term that can mean two things depending on the context:

  1. Warranties made by an insured party to an insurer. Most insurance policies do require an insured party to warrant that he or she will follow the contract. For example, a health insurance plan would require the insured to warrant that he or she doesn’t suffer from a terminal disease. If the warranty is violated, the insurer has the right to refuse to cover claims.
  2. Warranties made by a manufacturer. A warranty made by a manufacturer protects the buyer from defects and malfunctions that may be revealed once he or she starts to use the item. For example, car warranties are usually issued for 3 years or 36,000 miles.

What Does Warranty Insurance Cover?

Warranties made by an insured party to an insurer can be affirmative or promissory.

When it comes to warranties made by a manufacturer, though, the coverage depends on the warranty itself. Car warranties, for example, usually come in three packages – powertrain, inclusionary, and exclusionary – each of which covers different parts of the car. Most car warranties will cover losses caused by manufacturing defects, but will not cover the parts that were broken due to wear and tear (brake pads, tires, windscreen wipers, etc.).

How Much Is Warranty Insurance?

The cost of warranty insurance depends on the type of insurance. For example, the average basic home warranty would cost you about $500 a year, with extended coverage adding up to $500 to the figure.

Post featured image

A Practical Guide To R&W Insurance: What Buyers & Sellers Should Know About Its Role In M&A

The landscape of M&A has been dramatically transforming in times of the COVID-19 pandemic. Apart from the temporary market unpredictability, companies had to get used to the changing due diligence process and increase in litigation. But despite that, the reps and warranty insurance saw an increase in demand. Let’s take a closer look at the […]

Read More 2

Post featured image

Dealing With Stalling Tactics: How To Handle Insurance Adjusters & Minimized Claims

Purchasing an insurance policy can make you feel safe and protected against various risks. But while you do not obtain a financial advantage in return for the premiums you pay, the moral benefits offset the risk expectation. Let’s be honest: insurance companies are in this business for money and not your moral benefits. That is […]

Read More 2

Post featured image

Landlord Insurance: Shielding Rental Apartments & Buildings From Unprecedented Costs

Becoming a landlord can be challenging. If this is your first time renting a house, holiday home, or condo, do not bet your bottom dollar that homeowners policy has your back; that is a common misconception. Shopping around for affordable property protection is crucial for any property owner, but shielding your home from a destructive […]

Read More 2

Post featured image

Cal-COBRA vs. Federal COBRA: Principal Differences and How Each Program Works in CA

Did you decide to leave your job but keep worrying about losing your group health plan? Getting another position sometimes means dealing with a short waiting period. The good news is that you can remain on your employer-provided coverage under COBRA. California residents get to use two types of continuation coverage: the federal version of […]

Read More 2

Post featured image

Home Warranties FAQ: Definition, Benefits, Costs, Exclusions & Limits

Buying a house is a big event; for most people, it is one of the most exciting purchases they will ever make. An expensive repair bill, however, can quickly dash the joy. Many buyers will hire a home inspector to avoid being saddled with unforeseen repairs after closing.  While a brilliant idea, home inspections are […]

Read More 2

Post featured image

Insurance Solvency: Ratio & Methods to Determine

With over 92% of Americans having health insurance and almost everyone having at least one type of insurance from one of the 6,000 insurance companies, it is clear that the choice of your insurer is crucial. The range of carriers is staggering, making selection a nightmare for those unprepared. Whether you are seeking life insurance, […]

Read More 2

Post featured image

Boat Insurance: Definition & Types

Boat insurance is intended to safeguard the vessel and its commuters from accidents and other unexpected events. The policies may differ depending on the specific power limit and the boat class. Most of them guarantee year-round coverage and typically shield the craft from acts of vandalism, theft, fire, and storm throughout the off-season. Boat insurance […]

Read More 2

Post featured image

What is a Car Insurance & How Does it Work

Clients tend to look for additional benefits that go beyond cheap car insurance options. For instance, it can be a sense of social protection and welfare that often seems unattainable unless it comes with a price. And this price varies when it comes to shopping for auto insurance in particular. What is a Car Insurance? […]

Read More 2

Post featured image

The Intricacies Of Health Protection In The United States: Is It Legal To Not Have Health Insurance In 2023?

Health insurance supports policyholders and allows them to afford protection from health-related risks and various injuries.  When you purchase a healthcare plan, you expect to get the most out of it, especially if you have medical problems. That is why statistically, people with health issues tend to buy policies more often.  Does it mean that […]

Read More 2