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What Exactly Does a Home Warranty Cover?

July 6, 2021

As a new homeowner, you may begin to feel overwhelmed once the big purchase is locked down. Owning a home is a significant responsibility loaded with new expenses, insurance policies, and chores to complete. One such responsibility comes in the form of a home warranty. A home warranty, sometimes known as a home service agreement, helps cover the cost of repairs and replacements for systems and appliances in the house. Coverage can be confusing, though. Each warranty is different, and each service provider offers something unique.

Primary Coverage

Many home warranty companies offer a variety of coverage options for new homeowners. It is vital that you read through the contract completely before buying a plan, though. It is important that you understand just what your policy covers. Basic coverage includes:

•    Plumbing systems

•    Ovens

•    Dishwashers

•    Garbage Disposals

•    Sump Pumps

•    Water heaters

•    Ceiling fans

•    Heating and electrical systems

•    Built-in microwaves

•    Whirlpool tubs

While a home warranty covers these items under the most basic of coverage, there are optional items you may have included in your policy. Such items include a pool, septic system, standalone freezer, or a spa, for example. These are more expensive items installed after the fact.

Do You Need an Inspection?

Many home warranty providers will claim a home inspection is not required. If you’ve just purchased an older home, existing conditions could be present. Without a home inspection, you leave a major loophole for many companies to avoid paying claims.

A lot of warranties have a clause that will not cover pre-existing conditions in a home. If you do not receive an inspection, it is your word against the insurance provider.