What Does A Home Warranty Cover?
When choosing a home warranty, coverage is the most critical part of the policy. Coverage is the actual systems and appliances in your home that the home warranty will cover and protect. The difficult thing about choosing a home warranty policy is that every company has its own coverage options and features. A basic plan from one home warranty company will have entirely different coverage from another.
Understanding the coverage your plan has and how this will impact the value and protection of your home warranty plan is essential. Our guide will look at home warranty coverage, what it involves, how you can ensure that you have the best home warranty coverage on the market, and what better home warranty coverage can do for you.
Best Home Warranty Companies by Coverage for 2021
Know What Is Included in Your Home Warranty Coverage Quality
One of the most common mistakes that many homeowners make when they purchase a home warranty is that they do not thoroughly go over the list of covered items. For example, they assume that when they buy one of the best home appliance coverage plans it will include every appliance in their house. Home warranty buyers should remember that a higher-priced cost of home warranty coverage does not guarantee a better coverage plan.
The truth is that every company not only has its own list of covered and non-covered items, but for each one, there is a list of covered and non-covered parts. In addition to that, for many home systems and appliances, there is a coverage limit that may vary between companies. The coverage limit, or cap, is the maximum amount per year that the home warranty company will pay for the repair or replacement of a certain item. This is why it is very important to be meticulous about what your home warranty coverage is.
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What Does A Home Warranty Cover
Many homeowners get confused about the difference between a home warranty and homeowners insurance. The two policies are not at all related, and having one does not protect you from having to get the other.
The home warranty is a protection plan to cover appliances and systems in the home. When an appliance or system breaks due to normal wear, the home warranty will step in and cover the costs to repair.
Most home warranty plans will split the coverage between appliances and systems. Many companies will offer plans that are designed just for appliances, and others will focus on systems. The most popular home warranty coverage choices for homeowners are combo or comprehensive plans. The combo plans will cover both systems and appliances.
All home warranty plans offer different coverage options, and you will have to choose one that fits the specific needs of your home; however, these are some of the commonly covered items under a home warranty plan.
Common Covered Items Under A Home Warranty Plan | ||
Systems | Appliances | Add On Coverage |
Air Conditioning System | Refrigerator | Pool |
Heating System | Dishwasher | Spa |
Electrical System | Microwave | Additional Refrigerator |
Plumbing System | Washer | Central Vacuum |
HVAC System | Dryer | Roof Leak Coverage |
Water Heater | Oven | Septic Pump |
Ceiling Fans | Trash Compactor | Well Pump |
Air Duct | Garage Door Opener | Pest Control |
What Does A Home Warranty Not Cover
Just as important as understanding what a home warranty covers is understanding what it does not cover. As we mentioned, the home warranty policy is entirely different than a homeowners insurance policy. If there is a repair associated with customer misuse, poor maintenance, or even a weather-related situation, chances are your home warranty will not cover it. Here are some of the most common issues and occurrences that a home warranty will not cover.
Pre Existing Conditions
Home warranties will want all appliances and systems to be in working order the day that you sign up for your policy. Pre-existing conditions are not covered under any home warranty plan. If your refrigerator has been making a funny noise and it has you interested in a home warranty plan, you will have to fix it first.
When a repair technician comes to the home to diagnose an issue with your appliance or system, they will know if it is pre-existing. If this happens, you will have paid your service fee for the repair technician to come, but they will not repair it. Some home warranty companies will accept a recent home inspection as proof that all systems are in working condition at the start of the policy.
Improper Installation or Failed Maintenance
As a homeowner with an HVAC system, you know there are certain maintenance-type procedures that need to be followed. For instance, when the system is often running, the AC filters need to be checked and replaced or cleaned. If an issue arises with your HVAC and it is determined that these filters were the cause, your repair will not be covered under the home warranty.
It is very important for homeowners to remember that a home warranty is not a home maintenance plan. You still need to take an active part in keeping your home up and running.
Misuse of An Appliance
Using your stove for a science experiment or to cook for a commercial bakery may disqualify it from home warranty coverage. You must use your appliances and systems in the proper way and according to standard residential use. If a home warranty provider finds that you have misused your appliance, the claim will be denied.
Cosmetic Issues
Although cosmetic issues on a refrigerator or stovetop can change the look of your kitchen, they will not impact the usability of the appliance. When dealing with cosmetic issues, a home warranty company will not cover the costs associated with repairs.
Any Repairs Over The Coverage Limit
Every covered item in your home warranty plan will have a coverage limit. The coverage limit varies from one plan to another and from one item to another. If a home warranty company gives a coverage limit of $500 and your repair will cost $750, the $250 difference will come out of your pocket.
This is why it is so essential to ensure that the coverage limits of your home warranty policy are fair and acceptable. For homeowners with high-end appliances, this issue becomes even more critical.
Types of Home Warranty Coverage
Home warranty companies that provide the best home warranty coverage meets the needs of their customers by offering them different types of coverage. Typical home warranty coverage includes all essential home appliances and some crucial home systems, such as plumbing and air conditioning. It is very popular among clients who are interested in a seller’s coverage home warranty. Many experienced realtors recommend that sellers purchase a home warranty as it will protect the house while it is on the market, and will raise the value of the property in the eyes of potential home buyers.
For more demanding customers, premium home warranty coverage usually includes all major home systems, such as electric, plumbing, heating, and air conditioning, as well as all kitchen and laundry appliances. Most companies offer home warranty insurance coverage for additional items not included in the basic or premium plans. These items include swimming pool and spa, central vacuum, extra refrigerators or freezers, roofing, and such. For those customers who prefer to cover home appliances only, companies like Select Home Warranty and American Home Guard offer home appliance coverage plans.
Alternatively, these companies can provide basic home warranty coverage for home systems only. Combined plans for customers who want the best home warranty coverage including systems and appliances as well as optional add-ons are also available from these companies.
Types of Homes Eligible for a Home Warranty Coverage: From Single-Family to Mobile Homes
Once the home warranty industry emerged in the second half of the last century, most companies covered single-family houses only. As the home warranty market started developing and became more and more saturated, the companies began to offer home warranty coverage for different types of housing. First, the townhouses were included, then the condominiums, and eventually, the mobile home warranty plans became available.
A mobile home warranty is not offered by every company. However, if you own a mobile home, you may always ask the company representative if they have such an option. Mobile home warranty companies usually offer similar coverage options to other companies that don’t offer mobile home insurance. A home warranty for mobile homes provided by industry leaders like Total Home Protection or Choice Home Warranty covers air conditioning and heating, plumbing, and electrical systems, and a full range of home appliances, including a whirlpool bath.