A home warranty can be a lifesaver when unexpected repairs arise, but it’s essential to understand exactly what it covers—and what it doesn’t. Many homeowners assume that a home warranty will take care of every issue that comes up, but the reality is more nuanced. In this blog, we’ll break down what’s typically included in home warranty coverage, what’s not, and how to ensure you get the most from your plan.

What is a Home Warranty?

A home warranty is a service contract that helps cover the cost of repairs or replacements for major systems and appliances in your home. Unlike homeowners insurance, which protects you from damage caused by external events (like fires or floods), a home warranty focuses on the wear and tear of systems and appliances that fail due to age or usage.

What’s Typically Included in Home Warranty Coverage?

While coverage may vary by provider and plan, most home warranties cover a range of systems and appliances that are vital to keeping your home running smoothly. Here’s a closer look at what’s usually included. Major systems in your home are often the most expensive to repair, so having them covered under a home warranty can save you significant money. Common systems covered include. Repairs or replacement of heating and cooling systems due to normal wear and tear. Includes leaks, broken pipes, and issues with plumbing systems like water heaters or interior plumbing lines.

What’s Not Included in Home Warranty Coverage?

As important as knowing what’s covered is understanding what’s not. Home warranty contracts come with exclusions and limitations that homeowners should be aware of to avoid surprises when filing claims. Home warranties generally do not cover pre-existing conditions. If an appliance or system had issues before your coverage started, the home warranty company will likely deny any claims related to that issue.

Common Coverage Limits and Exclusions

Most home warranties place a cap on the amount they’ll pay for the repair or replacement of specific items. For example, your warranty might cover up to $1,500 for HVAC repairs, but if the cost exceeds that amount, you’ll need to pay the difference. Some warranties exclude coverage for specific parts of an appliance or system. For example, a refrigerator might be covered, but the ice maker may not be, or plumbing may be covered, but outdoor piping might be excluded.

Tips for Maximizing Your Home Warranty

The best way to avoid disappointment is to know exactly what your warranty covers and any exclusions or limitations. Don’t be afraid to ask questions before purchasing a plan, and make sure you’re fully aware of the fine print. Keeping your systems and appliances in good working condition is crucial. Most home warranties require you to properly maintain your items, and failure to do so can void your coverage. If something breaks down, file your claim as soon as possible to avoid any disputes about when the issue occurred. Waiting too long could result in a denial.