What Does a Home Warranty Not Cover?
Home warranties can serve as a financial safety net, taking the sting out of unexpected home repairs and replacements. While these policies can save you money, home warranties do not cover everything. Understanding the common exclusions (what a home warranty does not cover) can help you make an informed decision about whether a home warranty is right for you.
What is not covered by a home warranty?
A home warranty is not a universal safeguard against every potential repair or replacement cost. Even comprehensive home warranty plans have certain limitations and exclusions. It’s crucial to understand what is not typically covered by a home warranty.
A home warranty does not cover –
Outdoor items
Standard home warranty plans often exclude coverage for outdoor items such as sprinkler systems, outdoor kitchen equipment, pools, spas, and septic systems. The primary focus of most home warranties is on the critical indoor systems and appliances that make your home habitable and comfortable.
However, if you have amenities like an outdoor kitchen, a swimming pool, or a spa, some home warranty providers offer optional add-on coverage at an additional cost. This means you can extend the protection of your home warranty to cover these outdoor items, but they are generally not part of a standard warranty package.
Cosmetic issues
The main purpose of a home warranty is to ensure that your home’s systems and appliances are in working order. It is not meant to address cosmetic issues or aesthetic concerns. This means if your dishwasher is still functioning correctly, but the handle is broken or the panel is scratched, these are considered cosmetic issues and are not typically covered by a home warranty.
Remember, a home warranty is about function, not appearance.
Doors, windows, and walls
Doors, windows, and walls might seem like integral parts of your home, but a home warranty does not usually cover them. A home warranty is primarily designed to cover systems that require complex repair work, such as HVAC, electrical, and plumbing systems.
Although doors, windows, and walls are essential components of your home, they do not generally fall under the coverage of a home warranty. Repairs or replacements needed due to age, weather damage, or wear and tear on these components are typically the homeowner’s responsibility.
High-end appliances or systems
Standard home warranty plans may not cover specialized or high-end appliances or systems. This includes commercial-grade appliances, professional-grade kitchen equipment, and high-end audio/visual equipment. The reason for this is twofold: these items are more expensive to repair or replace, and they often require specialized knowledge or parts that may not be readily available to the warranty provider.
If you have these types of appliances or systems in your home and you want them covered, it’s important to discuss this with potential warranty providers before purchasing a plan. Some companies may offer coverage for these items as an add-on to their standard plan, or they may be able to tailor a plan to suit your specific needs.
Are there other things a home warranty doesn’t cover?
Understanding the intricacies of what is not covered by a home warranty is essential, and one area where homeowners often face confusion is related to the maintenance and misuse of appliances and systems. In short, if a system or appliance breaks down due to improper maintenance or misuse, the home warranty provider can deny the claim. Here are some examples to understand better what this entails.
Maintenance history
A fundamental prerequisite for most home warranty plans is that covered appliances and systems have been adequately maintained. Proper maintenance keeps appliances and systems running efficiently and extends their lifespan. For example, regular filter changes are necessary for HVAC systems, annual inspections for hot water heaters, and periodic servicing for major appliances like refrigerators and washing machines.
When a claim is made, home warranty companies often request maintenance records. If, for instance, your air conditioning system fails and it becomes apparent that the filter hasn’t been replaced in years, the home warranty company can refuse to cover the repair or replacement costs. In the eyes of the warranty provider, the breakdown occurred due to a lack of maintenance, not because of an unforeseeable issue.
Misuse of appliances or systems
Misuse of appliances or systems can also result in denied claims. Suppose a dishwasher is used in a way contrary to the manufacturer’s instructions and subsequently breaks. In that case, a home warranty company may consider this misuse and refuse to cover the repair or replacement costs.
This also applies to incorrect installations. If a system or appliance fails because it wasn’t installed correctly, a home warranty may not cover the repair or replacement cost. All installations should be done by professionals who follow the manufacturer’s guidelines to prevent such issues.
Do home warranties cover appliances and systems that are already broken?
Generally, home warranties do not cover any pre-existing conditions. If an appliance or system was already malfunctioning or broken before the coverage started, it would not be covered under the warranty. During the home inspection process, any identified issues with appliances or systems would need to be resolved before a home warranty can cover them.
How to find out what is covered by your home warranty
Determining precisely what your home warranty covers can seem daunting, given the complexities of these contracts. However, several key steps can help you understand your coverage thoroughly and ensure you’re making the most of your home warranty plan.
Read the contract
The first step in understanding your home warranty coverage is thoroughly reading the contract. This legal document will lay out in detail the extent of your coverage, including what systems and appliances are included, the exclusions or limitations, and the conditions under which repairs or replacements will be covered.
Look for a section in the contract often called “coverage details” or “terms and conditions.” Here, you’ll find a comprehensive list of covered items, typically categorized by systems (plumbing or electrical) and appliances (refrigerators or dishwashers).
Also, look for a section titled “exclusions” or “limitations.” This part of the contract will outline what the home warranty does not cover. This could include things like pre-existing conditions, improper installation or maintenance, or specific parts of appliances or systems.
Ask questions
If anything in your contract is unclear or you’re unsure about certain coverage aspects, don’t hesitate to reach out to the home warranty company’s customer service team. It’s their job to help you understand your coverage. Ask them to clarify any confusing points and provide examples if needed. You don’t want to find out that something isn’t covered only after it breaks down.
Understand regional differences
Home warranty coverage can vary from state to state due to different regulations. For instance, some states may have specific HVAC system coverage or septic systems requirements, while others might not.
If you’re moving or purchasing a home warranty in a different state, make sure you understand how your coverage might change. Reach out to your home warranty provider to clarify any regional differences in coverage.
Negotiate your home warranty
Finally, remember that you can negotiate the terms of your home warranty. If there are particular appliances or systems you want to be covered or specific conditions you want to be included, discuss these during the negotiation process.
While not all requests can be accommodated, many home warranty companies are flexible and willing to adjust their standard plans to better fit your needs. This could involve adding on coverage for additional items, adjusting the service call fee, or even changing the contract length.
Home warranties can be an excellent investment for many homeowners. You must understand what is and isn’t covered by your home warranty is key to making the most of your coverage. By knowing the typical exclusions and determining the specifics of your plan, you can make informed decisions, ensuring you have the protection you need for your home.
If you are a homeowner or are planning to buy a home, consider adding a home warranty to your to-do list. It’s a financial safety net that can shield you from unforeseen expenses related to your home’s systems and other components.
