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Home Warranty Guide: What's Covered, What's Not & How to Choose
A home warranty can save you thousands when major systems fail. Here's how they work and what to look for before you buy.
Find a Home Warranty Provider Near MeWhat Home Warranties Typically Cover
Coverage varies by plan and provider, but most home warranties fall into three categories.
Systems plan
$350 – $600/year
Typically covers:
- HVAC (heating and cooling)
- Electrical system
- Plumbing system
- Water heater
- Ductwork
Does not cover:
- Pre-existing conditions
- Code upgrades
- Cosmetic damage
- Outdoor plumbing
Appliances plan
$250 – $450/year
Typically covers:
- Refrigerator
- Dishwasher
- Oven and range
- Washer and dryer
- Built-in microwave
Does not cover:
- Cosmetic damage
- Filters and accessories
- Commercial-grade appliances
- Items not listed in contract
Combo plan (most popular)
$450 – $900/year
Typically covers:
- All systems coverage
- All appliances coverage
- Optional add-ons (pool, spa, well pump, septic)
Does not cover:
- Structural components
- Pre-existing conditions
- Improper installation or maintenance
- Items excluded in contract
Common Exclusions to Watch For
Understanding what's NOT covered is just as important as knowing what is.
Pre-existing conditions
Most warranties exclude failures that existed before coverage began. Some require a home inspection; others rely on a waiting period (typically 30 days).
Improper installation or maintenance
If a system fails because it wasn't installed to code or wasn't maintained, the claim may be denied. Keep records of all service and maintenance.
Code upgrades
When a covered repair requires bringing the system up to current building code, the upgrade cost is typically not covered.
Secondary damage
If a covered failure causes damage to other parts of your home (e.g., a burst pipe floods the floor), the secondary damage is usually not covered — that's what homeowners insurance is for.
Cosmetic damage
Scratches, dents, and cosmetic issues are never covered. Coverage applies to mechanical failure only.
How to Choose the Right Home Warranty
Read the sample contract before buying
Every reputable provider will give you a sample contract. Read the exclusions section carefully — this is where most disputes originate.
Compare service call fees
Service call fees (the amount you pay each time a technician visits) range from $60 to $150. A lower annual premium with a high service fee can cost more in a claim-heavy year.
Check the coverage caps
Most warranties cap payouts per system or appliance (e.g., $1,500 for HVAC). Make sure the cap is sufficient to cover a realistic replacement cost in your area.
Verify the contractor network
Ask whether you can use your own contractor or must use the provider's network. Network-only policies limit your options; some providers allow you to use your own contractor with prior approval.
Look for a workmanship guarantee
Quality providers guarantee the work performed under a claim for 30–90 days. If the repair fails, they'll fix it at no additional service fee.
Frequently Asked Questions
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