Home warranties can provide peace of mind to homeowners by covering the cost of repairs or replacements for many home systems and appliances. However, it's crucial to understand what is typically covered and what is often excluded. This article outlines the most common home repairs covered by home warranties and highlights typical exclusions.
Common Home Repairs Covered by Home Warranties
1. HVAC Systems
Typically covered:
- Air conditioning units
- Heating systems (furnaces, heat pumps)
- Ductwork
- Thermostats
2. Plumbing Systems
Typically covered:
- Pipes and pipe leaks
- Toilets
- Sump pumps
- Water heaters
- Bathtubs and showers
- Faucets and valves
3. Electrical Systems
Typically covered:
- Wiring
- Electrical panels and circuit breakers
- Outlets and switches
- Ceiling fans
- Doorbell systems
4. Kitchen Appliances
Typically covered:
- Refrigerators
- Ovens and ranges
- Built-in microwaves
- Dishwashers
- Garbage disposals
- Trash compactors
5. Laundry Appliances
Typically covered:
- Washing machines
- Clothes dryers
6. Garage Door Openers
Typically covered:
- Motor
- Chains, belts, or screws
- Pulleys
- Switches
Optional Coverage (Often Available for an Additional Fee)
- Swimming pools and spas
- Well pumps
- Septic systems
- Central vacuum systems
- Roof leaks
- Additional refrigerators or freezers
- Wine coolers
Common Exclusions in Home Warranties
1. Pre-existing Conditions
Most home warranties do not cover issues that existed before the warranty was purchased. This can include:
- Known problems with appliances or systems
- Visible rust or corrosion
- Previously diagnosed issues
2. Improper Maintenance
Damage resulting from lack of proper maintenance is typically not covered. This can include:
- Failure to clean or replace filters
- Neglecting annual HVAC system check-ups
- Ignoring minor leaks or other visible issues
3. Cosmetic Defects
Home warranties generally don't cover issues that don't affect the functionality of an item:
- Scratches or dents on appliances
- Faded colors or finishes
- Minor chips or cracks that don't impair function
4. Code Violations
Repairs or replacements needed to bring systems up to current building codes are often excluded:
- Upgrading electrical systems to meet new standards
- Replacing older plumbing materials (like lead pipes)
- Installing safety features required by updated codes
5. Structural Issues
Home warranties typically don't cover problems with the home's structure:
- Foundation issues
- Walls and framing
- Roofing (except for limited roof leak coverage in some plans)
6. Damage from External Factors
Issues caused by external events or factors are usually not covered:
- Natural disasters (floods, earthquakes, hurricanes)
- Pest infestations
- Power surges or outages
- Acts of war or terrorism
7. Luxury or High-End Features
Many home warranties have limits on coverage for high-end or luxury items:
- Professional-grade appliances
- Smart home technology
- Solar panels or geothermal systems
8. Consequential Damages
Damage resulting from a covered item's failure is often not included:
- Water damage from a leaking appliance
- Food spoilage due to refrigerator failure
- Damage to personal property
Important Considerations
- Coverage can vary significantly between providers and plans
- Always read the full contract to understand specific coverages and exclusions
- Be aware of coverage limits for individual items or systems
- Understand the process for filing claims and any associated service fees
- Consider the age and condition of your home's systems and appliances when choosing a plan
- Regular maintenance is often required to keep the warranty valid
While home warranties can provide valuable protection against unexpected repair costs, it's essential to understand their limitations. They are not a substitute for homeowners insurance and don't cover everything in your home. By understanding what's typically covered and excluded, you can make an informed decision about whether a home warranty is right for you and choose the most appropriate plan for your needs.