Home warranty coverage can be a financial lifesaver for homeowners as it will cover repairs or replacements for appliances as well as major systems that fail due to normal wear and and wear and tear. What exactly is a home warranty really include and what is non-covered? Many homeowners are amazed by the tiny specifics, exclusions, or restrictions on coverage that could affect your claims.
In this comprehensive guide, we’ll discuss the specifics of what’s covered under the warranty for your house in addition to the things that aren’t, what it will cost you, and how to select the best plan to meet your needs. No matter whether you’re buying your home your first home or you’re a homeowner with years of experience having a plan in place is crucial to protect your home and your financial security.
What Is a Home Warranty?
The home warranty could be described as an agreement that provides for repairs or replacements to essential equipment and appliances that go down due to regular use. As opposed to homeowners insurance, which is a type of policy that covers the damages caused by incidents like fire or theft, the home warranty is focused on issues caused by daily wear and and wear and tear.
Key Points:
- home warranties don’t have to be required under the law, but they may provide protection.
- They are adored by first-time home owners landlords, sellers, and landlords.
- Prices, benefits and exclusions vary for each plan and the provider.
Types of Home Warranty Plans
1. Systems Only Plans
It covers major home systems including:
- Heating and air conditioning (HVAC)
- Electrical systems
- Plumbing systems
- Water heaters
2. Appliance Only Plans
It is a term used to describe important appliances in the home, such as:
- Refrigerator
- Oven/range/stove
- Dishwasher
- Dryer as well as washer
- Built in microwave
3. Combo/Comprehensive Plans
This includes the appliances and systems, usually with greater coverage and more choices.
4. Optional Add Ons
Many companies provide additional features to:
- Equipment for spas and pool
- Pumps for wells
- Septic systems
- Roof leaks
- Further refrigerators, freezers and other appliances.
- Stand alone freezers
- Central vacuum systems
Cost of Home Warranty Coverage by Plan Type
| Plan Type | Average Annual Cost | Service Call Cost (per visit) |
| Systems-Only | $350 – $600 | $75 – $125 |
| Appliance-Only | $300 – $500 | $75 – $125 |
| Combo/Comprehensive | $500 – $900 | $75 – $150 |
| Add-Ons (each) | $30 – $150 | In the cost of service |
HTML0 Prices vary based on the provider, location, as well as the limitations on coverage.
Cost of Home Warranty Coverage by Home Size
| Home Size | Annual Cost (Basic) | Annual Cost (Comprehensive) |
| Condo/Apartment | $300 – $500 | $400 – $700 |
| A Single Family Home (<2,000 sq feet) | $400 – $600 | $600 – $900 |
| Large Home (>2,000 sq ft) | $600 – $900 | $800 – $1,200 |
| Multi-Unit Property | $700 – $1,200 | $1,000 – $1,800 |
Additional homes, as well as the addition of additional appliances and systems increase the price.
What’s in Home Warranty Coverage?
1. Major Home Systems
Most standard plans cover:
- HVAC (Heating Ventilation, Heating and cooling): Furnace, central AC heat pump and the ductwork
- Plumbing: Pipes, drains toilets, water heaters that stop at points as well as sump pumps
- Electrical System: Wiring, panels, circuit breakers, outlets, ceiling fans, doorbells
- Heating Water Models with tanks and without
2. Major Appliances
Equipments usually covered are:
- Refrigerator: Main kitchen fridge (sometimes ice maker/water dispenser)
- Oven, Range/Stove Electric or gas
- Dishwasher
- Built in Microwave
- Washer and Dryer
- Garbage Disposal
- Garage Door Opener
3. Optional/Additional Coverage
Depending on the plan you are making You may add:
- Pool/Spa Equipment
- Well Pump
- Septic System
- Roof Leaks
- Central Vacuum
- Second Refrigerator/Freezer
- Stand alone Freezer
- Water Softener
What’s Not Covered by a Home Warranty?
1. Common Exclusions
- Conditions that are pre existent or are recognized to be an issue prior to the time that coverage begins
- Coding violations, or incorrect installation
- Cosmetic defects (dents, scratches, paint)
- Maintenance routine (filters clean-ups and tune-ups and filter cleaning)
- parts that’re not vital (knobs shelves and rack handles)
- Natural disasters cause destruction (fire flood, earthquake)
- Equipments and systems which are of the commercial quality
- Still covered by the warranty provided by the manufacturer
2. Limitations and Caps
- Dollar limits per item or per contract term (e.g., $2,000 per appliance)
- A maximum amount of call to service in a year
- Certain items are only repairable and not replaced.
3. Pre Existing Conditions
- The majority of warranties don’t deal with issues that existed before the warranty started.
- Certain insurance companies provide coverage for pre-existing health conditions that aren’t specified. Make certain to check the fine print!
Factors Influencing Home Warranty Coverage and Cost
- Reputation for Providers: Established companies can offer more coverage and service.
- Plan Type: Plans which are more extensive cost more, yet provide greater coverage.
- Home condition and age: Older homes may have more expensive rates or excludes.
- Localization: Regional risks (e.g. earthquakes, hurricanes) could affect the coverage.
- Call Price: Lower fees may result in higher annual costs.
- Options for Add Ons: Pools, spas, and other equipment can add to the price.
How to File a Home Warranty Claim
- Identify the Problem:
- Are you sure that it’s an appliance or system covered by a cover?
- Contact Your Provider:
- Call or go to on the web portal to submit claims.
- Schedule a Service Call:
- The company will send an accredited technician.
- Pay the Service Fee:
- The typical price is $75-$150 per visit.
- Repair or Replacement:
- The technician will fix it or, if needed, substitute it (subject to coverage limits).
- Follow Up:
- Keep the track of any repairs or communications.
Pro Tip:
Take pictures of the issue and save the receipts.
Tips for Choosing the Right Home Warranty Coverage
- Learn carefully: Know what’s included and what’s not.
- Comparison of providers: Read reviews and the coverage options and prices.
- Verify Service Region: Verify that the company is in operation in your area.
- Contact us for more information on costs for service: Know what you’ll be required to be charged per time.
- Check Limitations of Coverage: Take note of limitations on repair and repairs.
- Be aware of your needs: Only pay for the coverage you’ll need.
- Request Transferability: This is useful in the event that you want to sell your home.
Conclusion
Home warranty coverage can be a powerful instrument to safeguard your home and your finances from expensive repair costs. However, there aren’t all plans designed to be the same. If you are aware of the coverage the plan offers, what’s not covered and how to pick the best plan, you’ll be free of any surprises and gain the most value from the investment.
Take the time to explore different options look over the small print before to making a buy. With the best home warranty coverage, you’ll enjoy peace of assurance as well as financial protection for years to be.
FAQs
What’s a home warranty coverage? Does it cover all the items in my home?
No. Only the systems and appliances mentioned in your contract are covered.
Are pre-existing conditions covered?
Most plans don’t cover current issues, but some plans cover only limited to not-identified problems.
Can I choose my own repair person?
The majority of the time, the warranty company picks the technician, but certain plans permit the client to choose.
What is the length of time that the coverage will be?
The majority of plans are annual, but there are alternatives for plans that span multiple years.
What happens if an appliance is not repairable?
The service provider may replace it according to the coverage limitations or contract terms.
Is a home warranty worth it for new houses being built?
It may be especially relevant for appliances and systems that aren’t covered under warranty plans from builders.
What will happen to my home warranty coverage if I choose to sell my house?
The majority of plans are transferable. Contact your provider for details.