Why Homeowners Are Still Exposed With Warranties AndService Contracts
Warranties and service contracts are important for home equipment, but they can give owners a false sense of security because the coverage is limited.

WARRANTIES HAVE EXCLUSIONS
Warranties typically cover a product for defects in design or manufacture, but not for human error in installing, operating or maintaining the equipment - all common causes of a breakdown. And a warranty is limited to a specific piece of equipment for a limited period of time. Grinnell Mutual's program can cover a wider range of equipment for the unique causes of equipment breakdown, including human error.

THEY WON'T PAY FOR LABOR
When a warranty does apply, it often will pay only for parts and materials, not expensive labor charges that can far exceed those costs. Labor charges and extra expenses are included in Grinnell Mutual's equipment breakdown coverage.

SERVICE CONTRACTS ARE COSTLY
Service or maintenance contracts, often sold by a contractor, typically apply only to a specific piece of equipment, excluding everything else. It's rare to find a homeowner with a service contract covering all the important mechanical equipment in the household. And these "home warranty" service contracts are far more expensive than Grinnell Mutual's
equipment breakdown coverage.

LOSS EXAMPLES
Heat Pump - Overuse of a heat pump system causes a mechanical failure of the compressor. Replacement cost of compressor and refrigerant was $1,872.

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