What Does a Home Warranty Cover and Why Should You Get One?
What Does a Home Warranty Cover?
A home warranty covers the service, repair, or replacement of major home appliances and systems.
These warranties are different from homeowners insurance, as they specifically cover appliances and systems listed in the contract.
Home warranty coverage can help minimize expenses for fixing or replacing big-ticket items.
Common systems covered by home warranties include electrical, ductwork, heating, interior plumbing, and water heater.
Common appliances covered include dishwasher, garbage disposal, oven/range/cooktop, refrigerator, and spa equipment.
Optional coverage may include systems like sump pumps, well pumps, and septic tanks.
It’s important to note that home warranty companies have limits on how much they will pay for diagnosis and repair or replacement of covered items, which can vary depending on the item.
Key Points:
- Home warranties cover the service, repair, or replacement of major home appliances and systems
- Home warranties specifically cover appliances and systems listed in the contract, differentiating them from homeowners insurance
- Home warranty coverage helps minimize expenses for fixing or replacing big-ticket items
- Common systems covered include electrical, ductwork, heating, interior plumbing, and water heater
- Common appliances covered include dishwasher, garbage disposal, oven/range/cooktop, refrigerator, and spa equipment
- Optional coverage may include sump pumps, well pumps, and septic tanks
Did You Know?
1. A home warranty often covers the repair or replacement of major appliances such as refrigerators, washers, and dryers, but did you know that it may also cover lesser-known items like built-in trash compactors and garbage disposal units?
2. Did you know that some home warranty plans provide coverage for water softeners and other water treatment systems? This can be especially beneficial if your area has hard water, as it helps prevent mineral buildup in your plumbing system.
3. Many home warranties offer coverage for ductwork, providing peace of mind if anything goes wrong with your home’s ventilation system. This coverage can extend to repairs, cleaning, and even total replacement if necessary.
4. If you have a swimming pool or spa at home, some home warranty companies offer optional coverage specifically for these features. This can be a great addition to your plan, ensuring that any issues with your pool’s equipment or plumbing are taken care of promptly.
5. While home warranties primarily focus on the interior of your home, some plans also extend coverage to external structures like fences and gates. This means that if your fence becomes damaged due to covered circumstances, you may be eligible for repairs or replacement.
What Is A Home Warranty?
A home warranty is a service contract that provides coverage for the repair, replacement, or service of major home appliances and systems. It is different from homeowners insurance, which typically covers damage to the structure of the home and personal belongings in the event of a covered peril such as fire, theft, or natural disasters. Home warranties specifically focus on the appliances and systems listed in the contract.
The purpose of a home warranty is to help homeowners minimize the expenses associated with fixing or replacing big-ticket items in their homes. It provides a sense of security and peace of mind, knowing that if a covered appliance or system breaks down, the cost of repair or replacement will be minimized.
Home warranties come with various coverage options offered by different companies. These options typically include total coverage plans, comprehensive systems-only plans, and appliances-only plans. Total coverage plans offer the most comprehensive protection, including both appliances and systems. Systems-only plans focus solely on the major systems of the home, such as electrical, ductwork, heating, interior plumbing, and water heater. Appliances-only plans, on the other hand, cover the repair or replacement of common household appliances such as dishwashers, ovens, refrigerators, and garage door openers.
Coverage Options And Plans Offered By Home Warranty Companies
When it comes to coverage options, home warranty companies provide a range of plans to suit different needs and budgets. Total coverage plans are the most inclusive, providing comprehensive protection for both appliances and systems. These plans typically cover a wide array of appliances, including:
- Air conditioning (optional)
- Dishwasher
- Garage door opener
- Garbage disposal
- Pool equipment (optional)
- Oven/range/cooktop
- Refrigerator (optional excluding ice maker)
- Spa equipment (optional)
In addition to appliances, total coverage plans also cover the major systems of the home, such as:
- Electrical
- Ductwork
- Heating
- Interior plumbing
- Water heater
Appliances-only plans are tailored specifically for those who are primarily concerned about their household appliances. These plans cover appliances like dishwashers, ovens, refrigerators, and garage door openers.
On the other hand, comprehensive systems-only plans offer coverage for the major systems of the home, such as electrical, ductwork, heating, interior plumbing, and water heater. These plans are designed for homeowners who want peace of mind knowing that the crucial systems of their home are protected.
Some home warranty companies may even offer optional coverage for additional items like sump pumps, well pumps, and septic tanks. These additional coverage options allow homeowners to further customize their warranty plans to meet their specific needs.
Systems Covered By Home Warranties
Home warranties provide coverage for a range of major systems within a home. These systems include electrical, ductwork, heating, interior plumbing, and water heater.
Electrical system coverage varies from plan to plan, but most plans cover major components such as attic vents and built-in exhaust units.
Plumbing issues such as clogs and leaks are covered by home warranties, but it’s important to note that the damage caused to other structural parts of the home as a result of these issues may not be covered.
Some home warranty companies also offer add-on coverage for septic tank plumbing, well pumps, and sump pumps.
Appliances Covered By Home Warranties
Home warranties offer coverage for a range of household appliances. These commonly include:
- Dishwasher
- Oven/range/cooktop
- Refrigerator (excluding ice maker)
- Garage door opener
Some home warranty plans may also provide optional coverage for additional appliances, such as:
- Air conditioning
- Pool equipment
- Spa equipment
Comprehensive home warranty plans might extend coverage to other appliances like:
- Free-standing ice machines
- Trash compactors
- Ceiling fans
- Jetted bathtub motors and pumps
However, it is crucial to carefully review the terms and conditions of your specific warranty plan to determine which appliances are covered.
Note: A home warranty plan can offer peace of mind by protecting your household appliances.
Exclusions And Limitations Of Home Warranty Coverage
While home warranties provide valuable coverage for a range of appliances and systems, it’s important to be aware of the exclusions and limitations that may apply. Some of these exclusions include:
- Structural issues
- High-end kitchen appliances
- Improper installation
- Maintenance issues or neglect
Seasonal issues, such as weather-related damage to windows, are typically not covered. However, it’s worth noting that structural issues are covered by homeowners insurance policies.
In addition, home warranties have limits on how much they will pay for diagnostic tests, repairs, or replacements of covered items. These limits can vary depending on the item and the specific terms of the warranty plan.
It’s also important to note that some home warranty companies may require proof of regular maintenance visits or servicing for certain appliances or systems in order to qualify for coverage.
In summary, a home warranty provides coverage for the repair, replacement, or service of major home appliances and systems. It offers various coverage options and plans to suit different needs and budgets. Home warranties cover a range of systems, such as:
- Electrical
- Ductwork
- Heating
- Interior plumbing
- Water heater
as well as common household appliances. However, there are certain exclusions and limitations to be aware of, and it’s important to carefully review the terms and conditions of a home warranty plan before purchasing.
Check this out:
Frequently Asked Questions
Do home warranties cover fire?
While home warranties offer coverage for a range of home systems and appliances, most providers do not include fireplaces. Unfortunately, this means that any repair or replacement costs for your fireplace would be your responsibility. However, it’s worth noting that home warranties may cover the gas line supplying your fireplace, offering some financial protection in case of any issues with this component.
Does a warranty cover replacement?
Yes, a warranty typically covers the replacement of components. A warranty serves as a manufacturer’s guarantee that all vehicle parts will operate as intended under normal conditions. Specifically, a limited warranty, often referred to as a bumper-to-bumper warranty, generally covers the replacement of almost all parts in your car. This includes any components that may malfunction or become defective during the warranty period. Consequently, with a warranty in place, you can rely on the manufacturer to cover the cost of replacing faulty parts, ensuring your vehicle operates smoothly.
What is a warranty insurance?
Warranty insurance is a type of insurance policy purchased by a company from Special Risk Services. This policy serves as protection against any breaches of warranty specified in a particular agreement by the company. With the investor named as the loss payee, the insurance is designed to provide financial coverage in the event of any breaches in the agreed-upon warranty terms. Overall, warranty insurance acts as a safeguard for both the company and the investor, ensuring that potential losses resulting from warranty breaches are mitigated.
Does home warranty cover thermostat?
Yes, a home warranty typically covers thermostats as part of its coverage for HVAC systems. A comprehensive home warranty for HVAC will not only protect the main components of the system like ductwork and pipes but also extend the coverage to include thermostats. However, it’s important to note that home warranties usually do not include portable appliances such as window unit air conditioners. Hence, if you’re specifically seeking coverage for those, you might need to explore other insurance options.