What a Home Warranty Will NOT Cover

Many people think that home warranties are exclusive to new homes. This is not accurate, although for many years home warranties were primarily marketed for newly constructed houses. Today, many people are becoming more aware of home warranties for older homes.

Home warranties can either be purchased for the home by the buyer or the seller of the property. A seller usually purchases a home warranty to solidify a sale, increase the saleability and increase the sale price of the home. Buyers usually purchase a home warranty when they buy an older home to cover the cost of any unexpected, major repairs.

Regardless of why you are purchasing a home warranty, it is important to look at the coverage that is offered by the company. Coverage varies from company to company and state to state. When you talk to a home warranty agent, be sure to ask what is and is not covered on your home warranty specifically.

Most home warranties will cover:
Air conditioning system
Built in dishwasher
Built in microwave
Built in trash compactor
Ceiling fans
Central heating unit
Duct work
Electrical systems
Garbage disposal unit
Plumbing systems
Refrigerator
The oven or range
Washer and dryer
Water heater Most of everything else is not covered. This includes:
Outdoor sprinkler systems
Outdoor water systems
Faucet repairs (unless otherwise stated in the policy)
Spas (you can request/add this coverage in some cases)
Pools (you can request/add this coverage in some cases)
Hot tubs (you can request/add this coverage in some cases)
Permit fees
Hauling away debris
Hauling away old appliancesIt is important to remember that some, or all, of these following are not covered on a few select plans, so if you are looking for this coverage, be sure to ask for these items to be included:
Washers (because they are not built in to the home and are not always included with a home.)
Dryers (because they are not built in to the home and are not always included with a home.)
Garbage disposals
Garage door openers
RefrigeratorsThere are also several things that could cause your home warranty to be invalid for a claim, which is another thing you need to check on before you sign on the dotted line and pay for your home warranty. Improper maintenance of the items covered by your home warranty tops the list for reasons your claim may be denied from the warranty company. Code violations and improper installation are also included in reasons why your request for a claim could be denied. It’s important that you check that your appliances are installed correctly and that your home meets the building codes. Before you purchase a home with a home warranty, have an inspection done and be sure to find out if the electrical and plumbing systems are up to code. Unusual wear and tear on an appliance is also a cause for non-allowance of a claim with a home warranty company. It is best that you ask your home warranty agent what will deny coverage for a claim and have that put in writing with your home warranty policy.