All About Home Warranty Coverage

Articles

A home warranty is a service agreement that covers household systems and appliances when they break down due to everyday use. There are an extensive diversity of coverage choices depending on the plan and provider you pick. If a covered appliance breaks down or a system fails, your home warranty provider will refer a qualified technician to your home at a time you schedule with that expert. The specialist will diagnose the issue and suggest a resolution. All you need to pay for a covered repair is the service fee for the technician’s visit. Your Home Warranty provider will take care of the rest.

What is generally covered?

Kitchen Appliances

As these are resources used every day by families, it is important to be prepared in case of a breakdown. Kitchen appliances will usually last for years, but when they fail, you can suffer high costs for a repair or replacement if you do not have a home warranty.

Refrigerator;
Oven & Cooktop;
Dishwasher;
Garbage Disposal;
Stand Alone Freezer;
Microwave Oven;
Plumbing Stoppage;

Did you know that the average repair cost of a refrigerator can run up to $500?

Yard & Outdoor Appliances and Systems

Several significant mechanical parts of in-ground pools and spas are covered under some home warranty protection plans, such as the filtration and heating systems. If you maintain a lawn, the sprinkler system can also be covered with a home warranty.

Pool or Spa;
Lawn Sprinkler System;
Garage Door Opener;

Did you know that the average repair cost of a pool can run up to $560?

Water & Temperature Systems for Living Spaces

A home warranty can cover the heating and cooling systems that keep your living spaces cozy. If you were to experience a breakdown, heating and cooling is often very expensive to repair or replace, but home warranty coverage can help you save.

Water Heater;
Heating System;
Electrical System;
Central Vacuum;
Roof Leaks;
AC & HVAC System;
Air Ductwork;

Did you know that the average repair cost for air conditioning can run up to $1,300?

Laundry Room Appliances

Washers and dryers are susceptible to common mechanical accidents that happen through daily wear and tear. They are also hard to fix and involve special parts that a service professional should be able to help with. Of course, calling upon a professional for washer and dryer repair can be costly in the absence of home warranty coverage.

Washer;
Dryer;

Did you know that the average repair cost of a washer can run up to $450?

Plumbing Systems

Home warranties can cover septic systems, plumbing stoppage, sump pumps, and even well pumps. Do not attempt to solve these mechanical issues when your Home Warranty coverage can send over a service professional to get the job done.

Septic System;
Well Pump;
Sump Pump;

Did you know that the average repair cost for a plumbing system can run up to $800?

What does a home warranty not cover?

A home warranty will not cover damage caused by water, fire, or disasters as these are usually covered by a homeowner’s insurance. If a fire occurs in your kitchen, the warranty will not cover consequential damages. Cosmetic and fixture repairs, including light bulbs and batteries, are not covered in home warranties. A home warranty also will not cover appliances that were not maintained properly. Regular periodic maintenance is not covered. The structural components of a home are also not covered. Premium or alternative home systems or appliances, such as a solar panel system or a steam oven, are typically not covered.

The classification of “properly maintained” is dubious, and records of service may be demanded before the home warranty company covers certain claims. This can be a significant issue for homeowners who did not occupy the home during the early years of a covered system or appliance’s lifespan. Many home warranties will refuse to cover items that are over a certain age.

In complex home systems, a home warranty frequently covers only certain components, but not the full system.

Example: for some Home Warranty companies, plumbing stoppages are a different coverage item than the plumbing system. If you have a stoppage that disrupts the entire system, but only stoppages are covered, the warranty may fix the stoppage but not cover the cost of fixing all the complications caused by the stoppage.

Generally, most home warranties do not cover pre-existing conditions, unusual wear and tear, improper installation or maintenance, code violations, items typically covered by home insurance, commercial-grade appliances or items still covered under the manufacturer’s warranty.

If you are buying a home warranty plan, always read the contract agreement. Look at coverage, exclusions and limits. Before signing anything, get a copy of the service contract for the plan you are considering and read the fine print. Home warranty policies will contain conditions for specific parts, items, limits and situations not covered.

Let’s imagine that your home warranty plan covers the kitchen refrigerator. The fine print of your contract might look something like this:

INCLUDED: All components and parts, including integral freezer unit
EXCLUDED: Racks, shelves, lighting, handles, ice makers, ice crushers, beverage dispensers, water lines, leaks, food spoilage, doors, door seals, hinges, glass, audio/visual equipment and internet connection components

This is what you should consider in a home warranty contract:

Understand what is covered;
The policy contract will list what parts, items and situations are covered.;

Look for exclusions

Exclusions may refer to appliances and systems not covered at all by your home warranty plan, but it will also contain specific parts, items and circumstances your policy will not cover. An appliance or system may only be covered for certain parts, while other features are excluded.

Check the coverage limits

Your contract should list any limits on the number of units covered, size or type of the unit, as well as the maximum amount covered (this is the total dollar amount the company will pay to repair or replace the item). You will be likely to pay for expenses that exceed the dollar limit listed in your contract. Frequently, your contract will list exclusions under each covered item but may have them listed in a separate “exclusions” or “notes” section, so be sure to check.

Finding the best coverage for your home is critical to safeguarding your finances should an unexpected breakdown happen. With a wide range of home warranty plans available, you are sure to find the ideal plan that fits your needs.