Protect your new home's systems and appliances from day one.
Overview
A home warranty is a one-year service agreement that covers the repair or replacement of many major home system components and appliances when they fail due to normal wear and use. It is renewed annually and gives homeowners a predictable way to manage the cost of unexpected mechanical breakdowns.
A home warranty is not the same as homeowners' insurance, and it is not a substitute for a home inspection. Each serves a different and distinct purpose:
The Pocono Advantage
A home warranty is valuable for any buyer — but it is particularly relevant for Pocono buyers:
Many Pocono buyers purchase a property they won't occupy full-time. A mechanical breakdown — a failed water heater, a malfunctioning HVAC system, a broken appliance — can go unnoticed for days or weeks if the owner isn't on-site. A home warranty provides a single point of contact to request service and get it resolved, even from a distance.
STR investors run their properties as a business. A mechanical failure during a guest stay can mean negative reviews, refunds, and lost revenue. A home warranty gives STR owners a structured way to address covered breakdowns quickly, reducing downtime between bookings.
The Poconos have a large inventory of vacation homes and cabins built in the 1970s–1990s. Older HVAC systems, water heaters, and appliances are statistically more likely to fail. A warranty helps manage the financial exposure of aging systems.
No inspection can predict every mechanical failure. The first year of ownership carries the highest risk of surprise breakdowns as buyers learn the property's quirks. A warranty is a financial safety net during that critical first year.
Coverage
Plans typically offer tiers — from basic system-only to comprehensive plans that add appliances, roof leak repair, and more. Most providers offer two or three tiers at different price points.
Exclusions
Home warranties cover mechanical failure from normal wear and use. They do not cover:
The Process
Requesting Service
A covered system or appliance breaks down due to normal wear and use.
You contact the provider (phone, online portal, or app) to submit a service request — most are available 24/7.
The provider dispatches a pre-screened contractor; you pay a fixed trade service fee when they arrive.
The contractor diagnoses the issue. If covered, the provider pays for the covered repair or replacement; your out-of-pocket is limited to the service fee plus any non-covered costs.
If the item can't be repaired, the provider may authorize a replacement up to your plan's coverage limit.
Trade Service Fees
A trade service fee (or service-call fee / co-pay) is a fixed amount paid to the contractor each time one is dispatched for a covered repair — separate from the annual premium. Amounts vary by provider and tier; higher service fees usually mean lower premiums and vice versa. Compare both when evaluating plans.
Seller Coverage Option
Many providers offer a seller coverage option — protection while the home is listed, transferring to the buyer at closing. It typically:
Offering a warranty with a listing can be a meaningful differentiator, especially for Pocono buyers purchasing from a distance.
Kerry is happy to explain how a home warranty fits into your purchase and can connect you with American Home Shield for current plan information.
This page is provided for general educational purposes only. Home warranty plans, coverage options, plan names, service fees, coverage limits, exclusions, and pricing are subject to change without notice and vary by provider, plan, and location. This is not a warranty agreement or coverage guarantee. Always obtain and review the current plan agreement and sample contract directly from your warranty provider before purchasing. Kerry McCaw is a licensed Pennsylvania real estate professional — not a warranty or insurance professional. All information deemed reliable but not guaranteed.