A home warranty covers the most important systems and appliances in your home. If your HVAC system, refrigerator, dryer, etc. stop working, your home warranty will cover the cost of repair or replacement. Here are the most common household items covered by the best home warranty providers.
What does a home warranty cover?
Home warranties are designed to protect homeowners from unexpected repair costs by covering major systems and appliances in the home. The most important items covered under a home warranty are “major systems, HVAC, plumbing, electrical, roof, water heater,” says Austin Glanser, co-owner of 717 Home Buyers and an experienced home flipper who completes 20 to 30 homes a year.
Home system coverage
A system plan typically includes important components to keep your home running smoothly, such as:
- Heating and Air Conditioning System (HVAC): Often includes furnaces, air conditioning equipment, and ductwork.
- Piping system: Pipes, faucets, and possibly a sump pump (if not, a sump pump can usually be added as additional coverage). Plumbing system coverage repairs damage caused by leaks, breaks, and outages. Equipment such as shower heads and faucets may not be included.
- Electrical system: This often includes wiring, panels, standard fixtures, and circuit breakers, but may exclude meter boxes, special wiring (computer, alarm, or security wiring), and generators. These exclusions may be offered as add-ons.
- Water heater: Your water heater may be covered by your system warranty, it may be an add-on, or it may be included in your appliance plan.
Coverage for home appliances
The most common appliances included in home warranty plans are:
- refrigerator
- dishwasher
- oven, cooktop, range
- washer and dryer
- built-in microwave
This list includes the most basic home appliances, but more comprehensive providers like American Home Shield often include even more home appliances, such as:
- ceiling fan, attic fan, exhaust fan
- doorbell
- Instant hot/cold water dispenser
- Garbage disposal
- garage door opener
- jet bath
add on
Some home warranty companies offer a short list of add-ons, while others, like Liberty Home Guard, offer more than 40 options. Some of the most common add-ons include:
- Pool and spa facilities
- Limited roof leakage
- well pump
- drain pump
- central vacuum
- purification system
- guest unit
- wine cooler
- freestanding ice maker
- lawn sprinkler system
Hint: Roof leak coverage is one of the most common add-ons, and one you shouldn’t overlook. “It’s very important to read the fine print,” says Glanser. “Some of these warranties exclude the roof.” If you have the option, add it to your warranty plan.
Additional benefits
Repair coverage is the most obvious benefit of a home warranty, but many providers also offer additional benefits for homeowners, including:
- home appliance discounts
- 24/7 customer service for emergencies
- Access to a network of service professionals
- Semi-annual HVAC tune-up and maintenance
- Transferable coverage for home sales
- Cleaning the dryer vent
- Smart home installation
- Rekey service
Products not covered by home warranty
A home warranty can save you thousands of dollars in repairs, but it doesn’t cover everything. Understanding what is excluded is just as important, if not more important, than knowing what is included.
Common exclusions include:
- Structural components: Foundations, walls, ceilings, and floors are usually not covered.
- Windows, doors, screens: These are covered under home maintenance, not system or appliance coverage.
- Outdoor features: Fences, landscaping, sprinklers, and separate structures such as sheds and garages are typically excluded unless specifically included as an add-on.
- Appearance issues: Paint, trim, and aesthetic upgrades are not part of the home warranty.
- Pre-existing conditions or improper installation: Your claim may be denied if the system or appliance was already broken or was not installed correctly before coverage began.
Types of home warranty plans
Home warranty plans cover home systems, appliances, or both.
- System planning: A system plan covers all the important systems in your home, including HVAC, electrical, and plumbing systems.
- Appliance plan: With an appliance plan, all major appliances in your home are protected. These plans often include kitchen appliances, washing machines, and other appliances such as water heaters and garage door openers.
- Combination plan: The best home warranty plans are often those that include both home systems and appliances. Although more expensive than system or appliance-only plans, these comprehensive coverage plans offer the most protection.
Hint: If your protection plan doesn’t cover everything you need, you can always expand your coverage with add-ons.
If it can’t be repaired, can I replace it under my home warranty?
Home warranties cover the cost of repairing or replacing systems and appliances, so if they can’t be repaired, you might be able to buy a new furnace. However, please note the following:
- Exchange restrictions may apply. Home warranty companies often limit coverage to a certain amount. Coverage applies to both individual items and contract terms, so if your new air conditioner costs more than that amount, you’ll have to pay the difference.
- You are eligible to purchase only comparable models. The replacement unit is similar to the one you had before, so you don’t have to expect any upgrades.
- Installation and disposal may not be included if: The details are important, and some providers may only cover the cost of the system or appliance, not labor or disposal fees.
FAQ
Does the home warranty cover complete replacement?
If your system or appliance breaks down due to normal wear and tear and requires a complete replacement, your home warranty will cover the cost. However, home warranties have limits, so if the replacement cost exceeds those limits, you may have to pay the difference.
Does warranty mean free replacement?
Warranty does not automatically mean free replacement. A home warranty will cover the cost of repairing damage and may replace systems and appliances if necessary.
Does the home warranty cover the roof?
Many home warranty companies offer limited coverage for roof leaks, but they don’t cover the entire roof like insurance. This coverage is included in your plan or can be purchased as an add-on.
