Looking for the best home warranty for potential water damage?
Perfect you’re in the right spot. In this guide we’ll answer questions like:
- Are home warranties meant for water damage?
- Is a home warranty for water damage worth it?
- How can you get the best coverage for potential water damage?
- And much more..
We’ve reviewed and rated over 68+ home warranty companies to provide you with the most information on how to cover water damage best with a home warranty. Curious to know more? Check out our top 5 companies below.
Our Top Picks Overview
What's In This Guide?
You might be familiar with a home warranty as a way to cover everything from your heating system to your garage door opener from malfunction due to everyday wear and tear.
But will a home warranty work for water damage? Indirectly, yes. Just as you use a home warranty to defray and minimize the cost of fixing a broken air conditioner (for instance), you can use a home warranty to minimize the costs related to an appliance or major system malfunction that also results in water damage.
Let me explain how this works by looking at the fine print and protection plans related to water damage.
Are Home Warranties Meant For Water Damage?
Generally, your home warranty is NOT your first line of defense when it comes to water damage. On the other hand, home warranties, in general, are meant to supplement other property protection products like homeowners insurance or renter’s insurance. So while a home warranty will not specifically cover repairs to a water damaged room, it can be a great supplement that pays out for the CAUSE of the water damage when it is not covered by your homeowners insurance.
Top 5 Best Home Warranties For Water Damage
What Should You Be Looking for In the Service Contract?
Again, to be clear, most plans, including American Home Shield, do not cover malfunctions directly caused by water damage. The sample contract reads in part, “…not responsible or liable for repairs or replacements when the malfunction is due to accidents, fire, freezing, water damage, electrical failure or surge, or excessive or inadequate water pressure” (emphasis added.) This is standard industry language included in most general exclusion sections of a home warranty contract. But whatever caused that damage, that can be where a home warranty comes to the rescue.
Best Home Warranty For Water Damage?
Choice Home Warranty is our top pick for water damage coverage in the home warranty market. Choice has more than 10 years of experience, has 24/7 customer service availability and emergency response around the clock for emergencies.
So, if your dishwasher breaks down and causes water damage, your home warranty can cover the cost of repairing or replacing the dishwasher–so you are not on the hook for that expense. All you are response for is the service fees for home warranty repair.
Water damage happens in lots of different ways. Many home warranty companies provide add-on coverage for roof leakage in addition to the standard appliance and systems coverage.
So while a home warranty is not the primary place people come for water damage protection, you are wise to be looking for every angle of protection, which can include a coverage to give you peace of mind when thinking about all the potential causes of water damage in your home.
What Will a Home Warranty Cover?
Here are a few examples of the kinds of coverage home warranty providers do offer that can help you out when water damage happen:
- Pipe leak coverage – under the plumbing system coverage, you will get coverage for leaks, stoppages (that’s clogs to you and me) and breakage usually up to around 100 feet from the access point. To get to the leak the service provider may repair the surface area back to what they call “rough finish” without sanding or painting any drywall or other surfaces. This may repair some of the water damage. But for the most part, water damage repairs will be up to you.
- Roof leak coverage – Most home warranty companies use the phrase “limited roof leak coverage,” and it is usually an add-on, though sometimes it is included in more basic plans. This would be for minor roof leak repairs, not for a full replacement of a roof.
- Water-related systems and appliances – your clothes washer, sprinkler system or plumbing could malfunction. Select Home Warranty estimates the average repair cost for a washer at $185 and replacement at $650. A home warranty can take care of those repair and replacement costs.
What Does A Home Warranty for Water Damage Cost?
Home warranty coverage for home systems and appliances like a plumbing system, garbage disposal, septic system, faucets usually require a more comprehensive coverage plan.
But the idea is to spend less than you normally would on home repairs.
In this case, home warranty costs will be slightly more, since you will likely be purchasing either a premium (combo) plan and add-on coverage as well.
A combo plan with add on coverage that will protect your water damaging appliances and systems can cost anywhere from $500 to $800. For specific numbers, all the companies we review will provide a free quote based on where you live and the type of house you live in.
Is A Home Warranty For Water Damage Worth It?
It could be. Home warranties are about much more than covering systems like your air conditioning, electrical system, or ductwork, and appliances like a cooktop or ice maker. And while most plans will not cover repair or replacement of water damaged property unless the repair or replacement is integral to repair or replacement of the malfunctioning system or appliance, protecting the systems and appliances themselves can minimize your out-of-pocket costs when water damage is caused.
For older homes where few components are under manufacturer or builder’s warranty, a home warranty can very much be worth it. Homebuyers working with real estate agents should ask about home warranty coverage to keep homeownership’s cost manageable.
How Do Home Warranties For Water Damage Work (Are They Unique)?
Step 1: Is this an Insurance issue or a home warranty issue?.
What will homeowners insurance cover? If water damage is the result of a natural disaster, fire, flood, or burglar breaking in and leaving a bathtub running (for some reason), your homeowner’s insurance policy should cover that. But if an appliance or system like a washing machine or HVAC just breaks down from normal wear and tear, that’s when your home warranty kicks in.
Step 2: Call your home warranty provider
You should call your provider within the specified claim filing period, which is usually three days for companies like Select Home Warranty, and file a claim for repair or replacement of the system or home appliances causing water damage. Other providers only allow 24 hours to file a claim, so be sure to be ready to file a claim once maintenance is needed.
Step 3: Coordinate service
Your service provider will repair or replace the damaged appliance or system, up to their maximum coverage. There is usually language in a service agreement. For instance, Choice Home Warranty notes in their standard agreement, “At times it is necessary to open walls or ceilings to make repairs. The Service Provider obtained by Us will close the opening, and return to a rough finish condition. We are not responsible for the restoration of any wall coverings, floor coverings, plaster, cabinets, countertops, tiling, paint, or the like.”
“Returning to rough condition” may or may not repair the water damaged area. So the upside is that replacement of the cause of the water damage will be covered. Repair of the water damaged surfaces will be an added expense that you will be charged for.
Read Also: What Are The Top Companies That Cover A Well System?
With that in mind, check out this tutorial on how to repair water damage to a drywalled ceiling. You’ll see that it is not the most complicated of home repairs, and even if you have someone else make the repair, it won’t likely cost as much as replacing or repairing a new upstairs washer would be:
Top Home Warranties For Water Damage Reviewed
While home warranties do not cover water damage per se, some do better than others at covering related hazards like roof leaks and plumbing issues.
Choice Home Warranty
If you have an older roof, Choice Home Warranty’s optional roof leak coverage is a good choice. Their Total Plan covers potential water damaging appliances and systems like clothes washers and garbage disposals.
- Won’t deny coverage for older systems and appliances
- Optional roof leak protection
- They stand by their work with reservice for failed repairs
- Not customizable
- Fewer add ons than some other companies
American Home Shield
American Home Shield will cover plumbing stoppages and leaks from plumbing fixtures that have worn out.
AHS is one of the few providers to cover tankless water heaters in their Systems and Combo Plans. They do not provide optional coverage for roof leaks.
- Cover tankless water heaters
- 24/7 service calls
- Offer a “build your own plan” option
- Limited additional coverage for water-related systems
- Roof leaks not covered
Select Home Warranty
Currently, their Bronze Care (Appliances) Gold Care (Systems) and Platinum Care (combo plan) home warranty plans all offer roof coverage for leakage. They do not offer optional coverage for sump pumps, well pumps, pools, or hot tubs. When service is needed, they are noted for the high level of professionalism in their service contractors.
- Limited roof leak coverage in all plans
- Professional contractors
- $75 cancellation fee
- No optional coverage for pools, spas, sump pumps
Total Home Protection
THP offers optional coverage for limited roof leaks, sump pump, along with water-using appliances like water heaters, dishwashers, and systems like plumbing. That’s pretty standard, but their Platinum Plan also covers whirlpool baths. That can amount to a lot of savings from a potentially big repair or replacement bill.
- An extensive list of optional coverage, including limited roof leaks, pool and spa, and septic system.
- Coverage of whirlpool bath
- Be quick, because you have just one day to submit a claim
First American Home Warranty
First American Home Warranty is an industry veteran and offers some very budget-friendly plans. Similarly to other plans, with the coverage options chosen, pipe leakage or stoppage would be covered, but water damage would be covered by home insurance.
FAHW will cover systems and appliances that use water, for instance, dishwasher, clothes washer, plumbing leakages, and water heaters. But significantly, they have minimal add-on coverage, and they do not have optional roof leak coverage as many of the other plans do.
- Good value for the money
- B+ rating with BBB
- Policy automatically renews
- Limited options for concerns around water damage
Final Thoughts On Home Warranties For Water Damage
While water damage repairs are generally not covered in a home warranty, a home warranty can provide you with protection for those nearly inevitable breakdowns of systems and appliances that cause water damage.
Finding a company that covers potentially water-damaging appliances and systems can be tricky. We hope you have found this resource helpful!