What Do Home Warranties Cover?

Home warranty plans can be great for homeowners if they want their systems and appliances to be covered. Because these systems and appliances are not typically covered by homeowner insurance and they can break unexpectedly, you likely want a home warranty you to give you the peace of mind knowing that you’ll be covered should the unexpected happen.

But what do home warranties actually cover? In the article below we will go in depth on what you can expect from your home warranty providers.

What is a Home Warranty?

A home warranty, like a warranty out on any system, appliance, cell phone, or device, will cover many of the appliances in your home if they break unexpectantly. But unlike individual warranties on individual items, home warranties generally cover a long list of items, appliances, and systems within your home. For that reason, home warranties can be incredibly beneficial to homeowners and even landlords.

If your system or appliance breaks down, you simply need to call your home warranty provider and they will help you schedule a technician to come out and help fix your system or appliance. If your system or appliance needs replacing, you would simply call your home warranty provider and they can help schedule a replacement or repair appointment for that system or appliance.

What Does a Home Warranty Cover When Buying a House?

Home warranty coverage typically varies from company to company. However, most home warranty plans will cover the basic systems and appliances in your home. Additionally, many home warranty companies offer variety of plans that will cover different items within your home so that you can pick and choose what you need it to cover.

For example, a home warranty company may offer an appliances plan that will only cover the appliances with your home. Home warranty companies likely will also offer a systems plan that can have all of your systems covered within your home. Finally, you can likely find a combination plan that will cover both systems and appliances within your home.

Luckily, most home warranty plans are incredibly customizable and you can pick and choose what you would like covered.

In addition to with the most basic system appliances, you can also find coverage for your more exotic home appliances and systems. For a full list of what a home warranty covers when buying a house, check out the items below.

The appliances that are generally covered by a home warranty include:

• Clothes washing machine
• Refrigerator
• Stove, oven, and ranges
• Built in microwave oven
• Stove cook top
• Dishwasher
• Clothing dryer
• Garage door opener
• Ceiling fans
• Trash compactor
• Freestanding ice machines
• Smoke detectors
• Central vacuum
• Doorbells
• Humidifiers

The systems that are generally covered by a home warranty include:

• AC and cooling systems
• Heating system
• Plumbing systems
• Electrical system
• Garbage disposal
• Water heaters
• Ductwork
• Plumbing systems
• Instant water dispensers

In addition to basic systems and appliances, you can also add add-ons to your plan should you need them. Some of the common items that can be included in an add-on plan include:

• Pools and spas
• Well pumps
• Septic pumps
• Roof leakage repairs
• Standalone freezer
• Wine cooler
• What bar
• Water filters
• Ornamental fountain motors
• Solar water system and equipment
• External plumbing
• Booster pump

What is Not Covered by a Home Warranty?

Even though home warranty plans cover a wide range of systems and appliances in your home, and you likely will not need to add much add on, there are some things that aren’t covered by home warranties that you should be aware of. Typically, they are circumstantial and will not affect your home warranty plan if your systems and appliances breakdown from normal wear and tear. Even so, you should be fully informed before you make a claim to your home warranty company.

When it comes to what is covered and what is not, it’s best to talk to your home warranty provider or read the fine print on your contract. The information is generally printed there and you should be able to find out relatively easily what is covered with your individual plan. Even so, there are some items that are generally not covered by a home warranty plan or items that you will have to pay extra premiums in order to be covered.

These items include:

• Faucet repairs
• Hot tubs
• Outdoor items, such as sprinklers
• Whirlpool bathtubs
• Hauling away extensive debris
• Hauling away old appliances
• Outdoor water systems
• Combo ceiling fans
• Spoiled food from broken appliances
• Booster pumps
• Home entertainment systems
• Extended pipe leak
• Accessories for your appliances, including shelves, racks, doors, etc.
• Light fixtures
• Remote controls
• Gas air conditioning units
• Window air conditioning units

As you can see, many other things that are not covered are generally cosmetic items or small details. This is because home warranty plans generally do not cover cosmetic damages which include dents, scrapes, an any broken piece that does not inhibit function. Basically, if you happen to rip the handle off a refrigerator, the handle does not prevent the refrigerator from working so it will likely not be covered under your home warranty.

Additionally, home warranty plans will not cover any modifications or changes that are needed when new and replacement equipment is installed. This typically happens when the new equipment needs to be put in place because building codes have changed, and the old equipment was outdated. Mostly for homeowners, this caveat will not impact their home warranty plan.

Finally, your home warranty may not cover your appliance if it was misused or neglected. This means that you must take care of all your systems and appliances, and you cannot simply get a replacement or repair if you are the one who causes damage to it. And, if you don’t take care of it, your home warranty plan may not cover the system or appliance.

Other things that are not covered by home warranty plans include:

• Cosmetic defects
• Damage from pests
• Improper installation, misuse, or neglect
• Items that are covered by an individual manufacturer warranty

Does a Home Warranty Replace Appliances?

Along with sending over a technician to repair systems or appliances that broke, most home warranty plans will cover the replacement of a broken appliance. However, you may need to have technician look at your system or appliance before they automatically replace it. Further, you will likely also have to set up a technician appointment to come and try to troubleshoot your appliance and make it work before your warranty plan replaces it.

Put simply, you will need to have a technician look at your system or appliance before they replace it. Even so, the whole process typically goes quickly, and the technician is typically dispatched to your home within 24 to 48 hours. You can likely have your system or appliance fixed or replaced rather quickly with a home warranty plan.

Do Home Warranties Cover Things Already Broken?

For the most part, home warranty plans will not cover any pre-existing conditions within your home. Basically, you cannot make a claim on a system or appliance that was broken before your home warranty plan was put in place.

This can be avoided if your home warranty plan was put into place before you bought the home and there were unknown pre-existing conditions. This simply means that the coverage began and you did not know there was a defect or problem with the system or appliance. In this circumstance, you can make a claim to your home warranty company.

Who Needs a Home Warranty?

Regardless of if you are buying your very first house or if you have numerous properties in your name, having a home warranty can give you peace of mind knowing that you were covered shouldn’t make your appliances breakdown. That said, it’s not only homeowners who benefit from having a home warranty out on their systems and appliances in their home.

For example, landlords may benefit from having a home warranty out on the properties that they rent out. Because they do not have as much freedom to check and provide regular monitoring for their home systems and appliances, having home warranties out on the properties that they manage can help when systems or appliances need maintenance, repair, or replacement. Instead of having to scramble to find technicians to come out to the rental property, the landlord can simply call the home warranty company and schedule a visit.

Additionally, people who are selling a house may also benefit from having a home warranty on their home. Because home warranties can look appealing to buyers, offering to pay for at least a year of home warranty out on the house may be the difference between selling the house quickly or having it sit on the market for months.

Finally, real estate agents may choose to offer a home warranty as a gift to the buyers who they were working life. It can be a great way to say thank you for choosing them as your real estate agent and it can give the virus a great head start on home ownership.

Are Home Warranties Worth it?

So, the true question is, are home warranties worth it? What you really need to ask yourself is: do I want to spend thousands of dollars on systems and appliances that can unexpectedly break? Like many people, you probably answered no to the top question. Instead, you would probably rather pay a small service fee for someone to come out and look at your appliance and fix it. If you are like those many people, you would benefit from a home warranty plan.

Home warranty plans are definitely worth it. It doesn’t matter if you are financially stable or if you live month to month, having to spend thousands of dollars on vital home systems and appliances is not a fun way to spend your money. Instead, pay a small monthly fee to your home warranty provider and be covered should the unexpected happen.

Final Thoughts

Now that you know what a home warranty is and exactly what home warranties cover, you can start searching for the best home warranty company for you. Of course, there are many different home warranty companies currently available, and it can be really difficult finding the right company for your home.

It can also take hours of research for you to find the proper home warranty company for your individual situation. So instead of spending too much time on the Internet looking for home warranties, make sure you check out our expert reviews of the top home warranty companies currently available. Our experts have done the work so that you don’t have to and have created comprehensive reviews all of the best home warranty companies.