What Home Warranty Covers: An In-Depth Guide to Exclusions,
Justin Reynolds
Key Takeaways
- Home warranties typically cover appliances and systems
- Service fees range from $75 to $150 per visit
- Exclusions include pre-existing conditions, normal wear and tear, lack of maintenance
A home warranty offers protection for your home’s systems and appliances. Here’s what you can expect:
Appliance-Only Plans
Coverage may include refrigerators, dishwashers, microwaves, ovens, trash compactors, washers, dryers, and more.
Systems-Only Plans
These plans typically cover heating systems, water heaters, air conditioning systems, plumbing systems, electrical systems, and ductwork.
Combo Plans
Combination plans offer coverage for both appliances and systems. These are often the most popular choice.
| Plan Type | Covers | Best For |
|---|---|---|
| Appliance-Only | Kitchen and laundry appliances | Newer homes with updated systems but older appliances |
| Systems-Only | HVAC, plumbing, electrical, water heater | Homes with newer appliances but aging systems |
| Combo | Both appliances and systems | Most homeowners wanting broad coverage in one plan |
Optional Add-Ons
Some providers may offer additional protection for pools, spas, septic systems, and well pumps.
What’s Not Covered?
Common exclusions include pre-existing conditions, normal wear and tear, lack of maintenance, cosmetic damage, and structural issues.
Review your contract details before purchase
Service Fees
When you request service, you’ll typically pay a fee of $75 to $150 per visit. Payout caps may also apply.
Home Warranty vs Homeowners Insurance
While both provide protection for your home, they serve different purposes and offer varying coverage.
| Aspect | Home Warranty | Homeowners Insurance |
|---|---|---|
| What It Covers | Mechanical breakdown of systems/appliances from normal wear | Damage from disasters like fire, theft, or storms |
| Is It Required | Optional | Usually required by your mortgage lender |
| Typical Annual Cost | $300-$600 | Varies widely by home value and location |
| Claim Process | Call for service, pay a per-visit fee | File a claim, pay a deductible |
Important Caveats
Please review your contract for specific terms and conditions as coverage may vary based on provider and plan type.
Review Contract Details Before Purchase
Given the complexity of home warranty contracts, we recommend reviewing details carefully before committing to a plan.
Talk to a local expert about home warranty coverage
What is considered normal wear and tear in a home warranty?
Answer: Normal wear and tear refers to the deterioration of a product over time due to regular use. Common examples include fading paint, worn-out carpet, or a microwave with faded controls. However, it's essential to note that what is considered normal wear and tear may vary among home warranty providers.
Does a home warranty cover pre-existing conditions?
Answer: No, pre-existing conditions are not covered by a home warranty. Pre-existing conditions are issues that were present before the warranty was purchased or should have been noticed during regular maintenance. It's crucial to perform routine maintenance and disclose any known problems when applying for a home warranty.
Are there specific maintenance requirements for a home warranty to be valid?
Answer: Yes, most home warranty providers require that you maintain your appliances and systems properly for the coverage to remain valid. Regular cleaning, timely repairs, and professional servicing can help ensure your appliances stay in good working order and reduce the likelihood of expensive repairs down the line.
What is the typical range for service fees with a home warranty?
Answer: Service fees for home warranties usually fall between $75 to $150 per visit, depending on the provider and the type of repair needed. It's essential to review the service fee associated with each plan you consider to make an informed decision.
What is the payout cap in a home warranty?
Answer: A payout cap is a limit on how much a home warranty company will pay for repairs or replacements during the contract term. Payout caps vary among providers, so it's essential to understand the limits of each plan before purchasing. For example, some plans may have a $3,000 annual payout cap on appliances and systems combined, while others might offer unlimited coverage for certain items.
Can I add optional coverage to my home warranty plan?
Answer: Yes, many home warranty providers offer optional add-ons that allow you to customize your coverage according to your needs. Common add-ons include extended coverage for pools, spas, septic systems, and well pumps. It's essential to weigh the cost of these additional coverages against their potential value when deciding which plan is right for you.
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