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What is included in a home warranty coverage?

Written by Homeowner.org Staff

Updated June 22, 2023

A Home Warranty covers various home systems.

Home warranties typically cover household appliances.

Homeowners are responsible for various expenses, such as home inspections and insurance. It may be beneficial to budget for a home warranty.

Gain further knowledge on the difference between Home Warranty and Homeowners Insurance.

A home warranty can provide financial assistance for unexpected home repairs in addition to homeowners insurance. These warranties offer coverage options to fit various budgets and protect important household systems and appliances, such as air conditioning and plumbing.

Can you provide an explanation of what a home warranty is?

A home warranty plan covers designated home systems and appliances in need of repair or replacement. It differs from homeowners insurance, which doesn’t safeguard against natural disasters or other home hazards. Instead, a home warranty provides financial coverage for each listed item in the policy when it ceases to function properly due to normal wear and tear.

Home warranty plans provide financial protection for your home. When appliances such as your refrigerator malfunction, your policy can cover some or all of the cost to replace it. Typically, you will pay a premium on a monthly, biannual, or annual basis for coverage.

Here are a few reputable home warranty companies.

Home systems and appliances typically have a limited manufacturer’s warranty that expires after a set period of time, usually one or two years. Beyond that time, repairs or replacements may not be covered unless an extended warranty or home warranty is purchased. Home warranty coverage can provide protection for repairs or replacements up to a predetermined limit set by the provider.

A home warranty may provide reassurance when purchasing a home with outdated appliances or systems. With a basic plan, coverage limits could aid in paying for repairs or replacements of major appliances and systems, lessening out-of-pocket expenses.

What is the cost of a home warranty?

Homeowners often inquire about the cost of a home warranty. The price of a premium can differ depending on the company and coverage. Typically, the monthly premium ranges from $30 to $75, and some companies offer discounts for paying annually or every six months.

There are several factors that can impact the cost of home warranty plans.

The size of a house can affect insurance premiums, with larger homes potentially having more complex plumbing and appliances resulting in higher costs.

When purchasing a home warranty, a company may present various coverage options for household systems and appliances. It is important to note that selecting more extensive coverage may result in a higher premium cost.

Certain home warranty companies may offer different rates depending on the location, with some areas that have a higher frequency of claims resulting in higher costs for the warranty.

Some home warranty companies offer discounts for covering multiple properties or purchasing new appliances, which can help offset the premium cost. For example, American Home Shield is one such company.

When comparing home warranty companies and premiums, it’s important to consider the service fee. This fee is charged when you submit a claim or need an appliance or home system repaired or replaced. Service fees can range from $50-$150, depending on the company. Keep in mind that a low premium may come with a high service fee and vice versa, so make sure both fit your budget.

Home Warranty Coverage

Home warranties provide coverage for home systems and appliance repair or replacement, which can supplement your insurance coverage. The specific coverage offered by warranty companies and options may vary, but typical home systems and appliances covered by home warranty contracts include:

A home’s HVAC system, which stands for heating, ventilation, and air conditioning, is often covered by top home warranty companies. Ductwork is a crucial aspect of a functioning HVAC system, and is typically included in covered repairs or replacements offered by most companies.

It’s important to be aware that HVAC and ductwork coverage may be separated by your company, so assuming your ducts are covered because your HVAC is could be a mistake. This is particularly relevant if you’ve replaced part of your HVAC system recently but your ductwork is older. Additionally, home warranties may not cover issues arising from neglecting regular ductwork maintenance, such as cleaning registers and addressing pest problems in a timely manner.

A home’s electrical system is responsible for powering various components such as lights and appliances. Generally, a home warranty covers common wear and tear issues of the electrical system such as replacing light fixtures or repairing water heaters.

While home warranties may cover certain electrical and plumbing issues, weather emergencies and accidents may not be included. Some home warranty companies, such as Cinch Home Services and American Home Shield, may offer coverage for specific components like direct current wiring and built-in exhaust fans and vents.

A home warranty can provide coverage for a guesthouse’s systems and appliances, ensuring they remain in good condition. Homeowners insurance covers the structure, but a home warranty can offer protection for repairs and replacements of the same appliances and systems as the main home.

Rental properties are eligible for home warranty coverage. Adding rental properties to a home warranty plan is a common choice among homeowners, as it often results in reduced monthly premiums through bundled discounts. Some companies even offer increasing discounts for each property added to the plan.

A heating system typically consists of a furnace, ductwork, and heat pumps. In the case of a solar energy system, solar panels and other components are also included. Reliable home warranty companies provide repair and replacement services for heating components that fail due to regular usage.

It is important to note that a home warranty plan typically excludes coverage for heating components that are still under a manufacturer’s or extended warranty. Furthermore, any repairs resulting from negligence, such as failing to maintain or care for the system, such as not changing air filters regularly, will not be covered by the warranty company.

Homeowners insurance covers accidental leaks and plumbing damage caused by sudden incidents, while home warranties assist with the cost of upgrading or fixing damaged pipes in your home.

A home warranty plan may provide coverage for plumbing-related fixtures and appliances, such as sink repairs, toilet replacements, and bathtub leak repairs. Replacement of faucets and vent lines, as well as professional clearing of blocked drains from tub, toilet, or sink, may also be eligible for reimbursement from the home warranty company.

When considering protecting your home, a home warranty can assist in covering the cost of replacing or repairing your roof, in addition to homeowners insurance. It’s important to verify if your policy includes roof coverage or if an additional premium is required.

Home warranty coverage may cover minor roof issues, such as missing shingles or normal wear and tear. In contrast, homeowners insurance typically handles roof damage caused by severe weather or accidents.

It’s important to carefully review your home warranty policy as it may have limitations on coverage for certain areas of the roof, such as those over sheds, garages, or covered porches. Additionally, complete roof replacements are typically not covered by home warranty companies.

A septic system is a crucial part of waste management for homes, utilizing a septic tank to treat wastewater instead of relying on city water management systems. Home warranties provide coverage for septic systems and wells, up to a certain extent.

Home warranties provide coverage for septic system issues caused by normal wear and tear, such as drain blockages or a failed sump pump. However, damage caused by overgrown roots or lack of maintenance may not be covered, making repairs or replacements ineligible for reimbursement.

Smoke detectors with battery operation are typically less expensive to replace than hardwired systems. Homeowners may need to repair or upgrade their system, and a home warranty company can provide assistance.

Home warranty companies offer service contracts that include diagnostics and repair or replacement of smoke detectors. It is recommended to check smoke detectors every six months to ensure proper functionality.

A home warranty typically covers various household appliances.

When an air conditioning unit fails during the summer, prompt repair is essential for comfort. In many cases, a home warranty covers HVAC systems, including air conditioning units.

It is possible for your main air conditioning unit’s wear and tear, and your home warranty company may dispatch a technician for diagnosis and repair. If needed, they may also provide reimbursement for replacement, within your allowable amount.

While many warranties do not apply to portable appliances like air conditioner window units, purchasing an extended warranty after the manufacturer’s warranty expires is recommended.

Most home warranty plans do not cover countertop microwaves, but built-in microwaves are considered covered appliances because they are not portable. To be eligible for replacement or repair cost coverage, issues with your built-in microwave must be related to regular wear and tear rather than a lack of maintenance, as is the case with most other appliances.

When it comes to replacing microwaves, built-in models can be more expensive due to their specific sizing. Before making any repairs or replacements, it is important to review your home warranty coverage to determine the amount your provider will contribute. Coverage amounts can vary, ranging from $500 to $2,000 or more.

Dishwashers have a multitude of mechanical components that can malfunction, despite proper usage. Regular maintenance and a home warranty can assist with the cost of repairs or a replacement.

Various companies offer varying degrees of protection for appliances, such as dishwashers. The cost of coverage ranges from $1,000 to $6,000, and is dependent on the company and plan selected. A service fee of $50 to $150 is typical for repair or replacement of a dishwasher through a home warranty.

Some home warranty policies may cover common electronics such as computers, smart devices, and TVs, but it is important to check if they are included in your basic coverage. If not, some home warranty companies offer separate plans for electronics protection that can be added to your policy.

Electronics may be covered by your insurance if they malfunction due to normal usage or experience power surges. Your warranty may also provide repairs or replacements for manufacturer defects, but electronics with an existing manufacturer’s warranty may not be covered.

Some companies offer extra coverage for standalone ice machines, such as the Home Service Club and Liberty Home Guard. Due to their high initial price tag, it’s crucial to have financial protection in case of repairs or replacement.

A home warranty typically provides coverage for all parts of an ice maker that may need repair or replacement due to normal wear and tear or regular usage. Signs of potential issues with the ice maker include loud noises, decreased ice production, or leaks. The warranty often includes coverage for both parts and labor expenses.

Different insurance companies categorize garage door openers differently, with some considering them part of home systems and others including them in appliance coverage. However, most providers offer home warranty coverage that can protect your garage door opener system. You may need to repair or replace your opener if it operates unreliably, makes loud noises, or causes the door to stall or get stuck.

The cost of replacing tools like garage door openers can reach up to $500, and repairs may cost around $150-$200. By having a home warranty, all you need to do is pay the service fee of your chosen company to have a technician come to your home, identify the issue, and repair or replace your garage door opener.

Garbage disposals may require replacement at a cost of $200-$300. However, with a home warranty, the fee is typically around $25-$50, or the cost of the service fee. These appliances are frequently used in homes and can develop issues due to regular use. Indications of problems might include slow draining, odd noises, or leaks.

A home warranty often offers coverage for a malfunctioning garbage disposal caused by plumbing issues, but certain exclusions may apply if the appliance is not properly maintained or used incorrectly.

An oven malfunction can impede your ability to cook at home, which is why it typically falls under the coverage of a basic home warranty. This warranty should account for repairs or replacement due to regular use and mechanical issues, up to a specified cost as outlined in the policy.

If your oven or separate cooktop requires service, the coverage may extend to them. A service fee ranging from $25 to $100 can be expected for diagnosis, repair, or replacement by a company service contractor.

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