What Does a Home Warranty Cover?
Owning a home is one of the most significant investments you'll ever make. While it's a rewarding experience, homeownership comes with the responsibility of maintaining your property and covering repair costs when things break down. That's where a home warranty plan comes in, providing financial protection for your home systems and appliances. But what exactly does a home warranty cover, and is it worth the cost? Let’s dive in.
What is a home warranty and what does it cover?
A home warranty plan is a service contract that covers the repair or replacement of major home systems and home appliances that fail due to normal wear and tear. Unlike a manufacturer’s warranty, which typically only covers new appliances for a limited time, a home warranty is designed to offer long-term peace of mind, even for older items in your home.
Home warranty plans can come in with different types of coverage, depending on the age and condition of your home. Some plans offer “systems coverage” and some offer “appliance coverage”, while other plans offer a combination of both for comprehensive coverage.
Systems Coverage: A home systems plan typically covers the major infrastructure in your home. This includes essential components like your HVAC system, electrical systems, plumbing system, and water heater. These systems are critical to the functioning of your home, and repairs can be quite costly. If you experience issues like a heating failure in the middle of winter or a major electrical problem, a systems warranty ensures you're not paying out-of-pocket for expensive repairs or replacements.
Appliances Coverage: A plan focused on home appliances provides coverage for items like your washer, dryer, refrigerator, garbage disposal, built-in microwave, and other key household items. Appliances can break down due to normal wear and tear, and a warranty covering appliances will ensure you don't have to bear the full cost of repairs or replacements for these day-to-day items.
What items are typically covered with a home warranty plan?
These appliances are usually included in a standard home warranty plan with appliance coverage:
- Refrigerator
- Washing machine
- Dryer
- Dishwasher
- Oven/Range/Cooktop
- Microwave (built-in)
- Garbage disposal
- Trash compactor
- Freezer
- Garage door opener
These appliances are often included in basic home warranty coverage plans, though coverage may vary by provider. Always check specific coverage limits and exclusions for each item.
Here’s a list of commonly covered systems in home warranty plans:
- HVAC system (Heating, Ventilation, and Air Conditioning)
- Plumbing system
- Electrical system
- Water heater
- Ductwork
- Central vacuum system
- Ceiling fans
- Sump pump
- Well pump and septic system coverage is often available as an add-on
Common exceptions and exclusions of home warranty plans
Typically, pre-existing conditions are excluded, meaning the plan won’t cover systems or appliances that were already malfunctioning before the warranty took effect.
Additionally, damage caused by improper installation, misuse, or lack of regular maintenance is often not covered.
Warranties also generally don’t cover cosmetic defects, structural issues, or items still protected by a manufacturer’s warranty.
Understanding these exclusions is key to avoiding unexpected costs when repairs are needed. Always read the contract’s fine print to know what’s covered and what’s not.
Some home systems or appliances, like septic systems, well pumps, or certain high-end appliances, may require additional coverage or be entirely excluded.
Choosing the best home warranty for your needs
With so many options available, choosing the best home warranty companies can feel overwhelming. The key is to compare coverage options and service contracts to ensure you're getting the protection you need for your home systems and appliances.
When selecting a plan, consider:
- What home systems and appliances are most crucial to your home?
- Does the plan cover major appliances like your air conditioning or washer?
- What are the coverage limits and exclusions?
- Are there add-ons available for items like septic systems or well pumps?
Top home warranty providers like American Home Shield and Choice Home Warranty are known for offering reliable service and a variety of coverage options to meet different homeowner needs. So take a look at some companies working in your area, start comparing plans and be sure to review the finer points. Understanding these details can help you find a plan that suits your home and offers the best home warranty coverage for your budget.