A home warranty can be a valuable safeguard for homeowners, offering protection against unexpected repair costs for household systems and appliances. But understanding exactly what these service contracts cover—and don’t cover—is important before signing on the dotted line.
We’ll walk you through the ins and outs of home warranty coverage, helping you decide whether this type of protection is right for your home.
What Does a Home Warranty Cover?
Home warranties typically cover repairing or replacing major home systems and appliances that break down due to normal wear and tear. While coverage varies between providers, most standard home warranty plans protect a core set of household items.
Common Household Items Covered by Home Warranties
Home warranty plans cover items critical to the functioning of a household. Coverage focuses on essential systems and appliances, providing peace of mind in case of unexpected breakdowns. The items covered under a standard home warranty plan include:
| Item | Coverage Terms |
| Dishwasher | All components and parts are covered. |
| Clothes Washer | All components and parts are covered. |
| Clothes Dryer | All components and parts are covered. |
| Built-In Microwave | All components and parts are covered. |
| Oven and Stovetop | All components and parts are covered. |
| Refrigerator | All parts and components are covered, including built-in freezer units. |
| Water Heater | All components and parts are covered, including for gas models, electric models, tankless units, and circulating pumps. |
| Heating and Air Conditioning Systems | All components of the following types of systems are covered: ducted units, central units, electric units, split and packaged units, forced air, geothermal, wall-mounted units, mini-splits, heat pumps, floor furnaces, hot water, and electric baseboards, Ducts from the unit to the point of attachment to appliances, and replacement parts needed to meet government guidelines are also covered. |
| Electrical System | The following electrical components are covered: wiring from the electrical panel to any other covered item, light fixtures, electrical panels, direct current (DC) wiring, light switches, and electrical outlets. |
| Plumbing System | These parts of your home’s plumbing system are covered: toilets and related mechanisms, breaks and leaks to the system’s water, drain, gas, and vent lines, faucets, toilet wax ring seals, hose bibs and valves, basket strainers, drain stoppages, sewage ejector pumps, and pressure regulators. |
What Doesn’t a Home Warranty Cover?
While home warranties offer extensive coverage for many appliances and systems, some home systems and components fall outside the scope of these service contracts. Knowing what’s excluded is just as important as knowing what’s covered, helping you set realistic expectations for what a home warranty will do.
Common Items Not Covered by Home Warranties
Home warranties have limits — knowing what they don’t cover can help you plan accordingly. Here are five household items that are typically not covered:
- Windows and doors: As part of the structural elements of your home, they fall outside the coverage.
- Bathtubs and Showers: While associated with your plumbing system, they typically aren’t covered due to their structural nature.
- Gutters: They’re usually not included as they’re exterior features that require regular cleaning and maintenance.
- Smart Home Systems: These systems are usually excluded due to their complexity and cost.
Other Coverage Exclusions To Consider
Home warranty companies set limits, even for items they usually cover. Your provider will deny claims for preexisting conditions that emerged before your policy took effect.
You must perform routine maintenance on your systems and appliances, as your warranty won’t cover damage from neglect. Your policy excludes cosmetic issues like scratches or dents that don’t affect an item’s functionality and won’t cover damage caused by improper installation.
Items with active manufacturer warranties typically fall outside your home warranty coverage. Your provider also sets specific monetary limits on repairs and replacements through coverage caps.
Most companies have a waiting period for the policy to become effective after you buy it. This means you can’t buy insurance only when problems happen.
How To Make the Most of Your Home Warranty
Taking strategic steps to manage your home warranty will help you maximize its benefits and value. Start by thoroughly reading your plan’s fine print to understand the exact coverage scope before purchasing.
Maintain your systems and appliances regularly to keep them in optimal working condition and help ensure any claims you make will be covered. Keep detailed maintenance and repair records to support claims.
Learn how your provider handles claims so you’ll know what to expect if you need to make one. This will help problems get fixed faster when they happen. Consider purchasing add-on coverage options if your home has special systems or appliances that fall outside a company’s standard protection.
When you manage your warranty coverage and know what it can and can’t do, you’ll make your home safer and maximize your investment.
Alternatives to Home Warranties
Home warranties don’t cover everything. The additional protections we’ve outlined below will help ensure you have a plan to cover what home warranties don’t.
Homeowners Insurance
A home warranty covers home systems and appliances. Homeowners insurance protects against damage from fires, storms, and other events. Understanding the difference helps ensure your home is comprehensively covered.
Savings Account
Establishing a dedicated home repair savings account saves you money for unexpected repairs. This financial cushion can help cover items not included in your home warranty policy.
Manufacturer Warranties
Manufacturer warranties may apply to newer appliances and systems. These warranties may mean you don’t need additional coverage under a home warranty plan.
Home Maintenance Plans
Some companies offer home maintenance plans that cover items and routine servicing not typically covered by home warranties. These plans focus on preventive care to extend the life of your systems and appliances.
Final Thoughts About Home Warranty Coverage
Home warranties can protect against unexpected repair costs but aren’t a catch-all solution for every home maintenance issue. By understanding what these service contracts do and don’t cover, you can decide whether a home warranty is right for you.
If you choose a home warranty, read the contract carefully. Keep the items covered in good condition, and be ready with other ways to fix things that aren’t covered.
