Homeowners often face unexpected breakdowns of essential components, leading to hefty repair or replacement expenses. That’s where a home warranty steps in, offering financial security in the event of significant issues. However, understanding what a home warranty covers and assessing its value can be influential. Many homeowners opt for home warranty coverage alongside their standard homeowner’s insurance for added peace of mind. In this article, we will explore the intricacies of these policies, providing you with a clear understanding of “what does a home warranty cover?” With this, you can make an informed decision on whether securing a plan aligns with your needs and priorities.

Typical home warranty coverage

While the specifics can vary between different home warranty providers, there are some fundamental inclusions you should expect from your plan. When reviewing the terms of a new policy, carefully examine the fine print to ensure that it offers the coverage you require before committing. You might wonder, “What does a standard home warranty cover?” This coverage means that your policy will assist in covering the repair expenses for specific items or components within your home. In many cases, the home warranty company will also foot the bill for replacing certain items if they are deemed irreparable by a professional.

It’s important to note that, in addition to your monthly policy payment, you will be responsible for a service fee, typically between $55 and $125 per service call. However, this fee should still be less than what you would have to pay if you were to handle the repairs out of your pocket.

Here are some of the most common things that your plan should include.

Home systems and components

Appliances

These are merely a few examples of what you can expect to be included in your home warranty coverage. The top-notch home warranty providers offer flexibility, allowing you to add optional items to your coverage, such as swimming pool or hot tub equipment, if applicable to your situation. It’s crucial to thoroughly review the specifics of your plan to ensure it aligns perfectly with your unique needs. Additionally, remember to clarify the service fees and what services are encompassed by them. Taking these steps ensures that you’ll have the precise coverage necessary in case of a breakdown or other significant issues.

Additional home warranty coverage plans

Some home warranty companies specialize in offering plans that exclusively cover specific systems, such as your heating and air conditioning, ventilation, interior plumbing, and electrical systems. On the other hand, some providers focus solely on major appliances, which can be an attractive option if your appliances or HVAC system are no longer covered by their original manufacturer’s warranty or if repairing them comes with a substantial price tag. Nevertheless, you have the flexibility to enhance your coverage by selecting additional home warranty plans or supplemental add-ons to safeguard various other components of your home.

  • If you have a well, basement, or septic system, look for optional coverage that will take care of things like the home’s sump pump, septic tank, or well pump.
  • For those with more than one appliance (such as a home with two refrigerators), you’ll want to ensure that the plan covers both. You may need to pay more, but it will give you peace of mind.
  • A comprehensive home warranty plan may also cover less common appliances like trash compactors, motors for jetted bathtubs, and standalone ice machines. They may even cover something as simple as the ceiling fans in your home.
  • If you have a swimming pool or hot tub, you may want to opt for additional coverage plans that take care of equipment such as the pump or filtration system.
  • There may be additional pest control plans available as part of a whole home warranty plan.

Shop for the best home warranty company with the right plan available to you, and ensure it includes everything you need. While the most basic plans cover major appliances and home systems, additional coverage could help if you have a well, septic system, or swimming pool. The cost to repair these major components can be extremely high, so it’s worth adding the coverage if it applies to you.

What doesn’t a home warranty cover?

Now that you know the basics about home warranty coverage, let’s take a closer look at what these plans don’t cover. Certain items are usually excluded from home warranty plans, including:

  • Problems with a home’s structure like the walls, flooring, and foundation
  • Commercial-grade appliances or systems from brands like Viking, Bosch, GE Monogram, Thermador, and Sub-Zero (check with your warranty company to confirm)
  • The remote controls, hinges, or springs of garage doors and openers
  • Solar systems and any components related to them
  • Issues related to normal wear and tear, lack of maintenance, or pre-existing conditions
  • Damage caused by pets or pests
  • Anything related to the improper maintenance, design, installation, manufacturer defect, or repairs completed outside of the warranty contract
  • Non-covered parts of appliances like oven racks, clocks, and timers, or remote controls
  • Water damage related to storms, roof leaks, or leaking plumbing
  • Correction of building and/or zoning code violations
  • Problems resulting from rust, sediment buildup, or corrosion
  • Issues that were uncovered by a home inspector (since you were already aware of them)
  • Identification, detection, abatement, and removal of dangerous, hazardous materials & substances like radon gas, mold, or asbestos
  • Cosmetic issues (i.e. chipped paint or worn finishes on appliances)

It’s vital to compare several home warranty companies to help determine which one offers the best coverage related to your home and your needs. Look at the monthly cost and the service fees, and ensure you pay close attention to the items that aren’t covered. Overall, a home warranty plan could save you hundreds or even thousands of dollars yearly, especially if you have older appliances or an older home.

FAQs

What happens after I file a claim with my home warranty company?

In most cases, the home warranty company will have a service contractor contact you between 24 to 48 hours after you file a claim. Keep in mind that this timeframe can vary depending on where you live, the severity of the problem, and how many claims are currently in process versus how many contractors are available. Always file your claim as soon as an issue arises so your warranty provider can address it quickly. Once the claim goes through, a service contractor will visit your home, assess the issue, make repairs, order parts, or recommend a replacement.

If they recommend a replacement, you’ll need to wait for the home warranty company to approve the contractor’s report and wait for your replacement appliance or component to arrive.

Do home warranty companies have a waiting period?

If you’ve just enrolled in a home warranty plan, you may have to wait at least 30 days before filing any claims or requesting repair services. Read the fine print to confirm whether or not your plan has a waiting period and how long that period is.

Are there limits on how much a home warranty will cover?

Most home warranty companies have limitations on how much they’ll cover to replace an appliance or system. For example, if the company pays up to $1,500 for a new appliance, you will need to select something in this price range or pay for the difference in cost out of pocket. Some home warranty companies have a specific dollar amount pre-assigned to each appliance, particularly items like built-in microwaves, dishwashers, and water heaters. Check your coverage limits to confirm how much the company will cover if something needs replacing.

Do home warranties cover fireplaces?

Home warranty companies do not typically cover fireplaces. However, they may cover the gas line to your gas fireplace since they may consider this part of your home’s heating system.

I have a solar panel system. Will my home warranty plan cover this?

Solar panels are attached to the house, so they’re considered a part of the structure. Because of this, most home warranties do not cover them. But most solar panel companies offer extended warranties, and many homeowner’s insurance plans also include the panels as part of the dwelling coverage. Make sure you talk to your solar panel installation company or homeowner’s insurance agent to confirm who covers this part of your home.

Which part of my home’s electrical system is covered by a home warranty?

Your specific interior electrical system coverage will vary depending on your chosen plan. Most home warranty companies will cover the major components like attic vents and fans or built-in bathroom exhaust units. However, not every plan covers specific items like wiring for cables, computers, and security systems or issues such as an electrical circuit overload.

How would a home warranty plan protect my roof?

In most cases, your homeowner’s insurance plan will cover damage to your roof and the possible replacement of a roof in the event of severe damage. If you recently installed a new roof, it should come with a warranty that will usually cover specific items and issues like problems directly relating to the installation itself or the shingles. Some home warranty plans may help cover the cost of repairing a small roof leak, but they definitely will not cover any damage resulting from the leak, such as soaked drywall or wet floors. Many policies will not cover metal roofing or leaks on a patio roof.

Now that you know what a home warranty covers (and what it doesn’t), you can decide whether or not this type of plan is right for you. While homeowner’s insurance covers some things, a full home warranty can help to fill in the gaps. Remember to read over the policy’s fine print and look for the best home warranty company in your area based on the cost and what it covers to help protect your investment.