Does a Home Warranty Cover Electrical Issues?
Check electrical coverage to avoid costly surprises later
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Home warranties often cover electrical issues as part of their comprehensive coverage. A plan can include repairs or replacements for electrical systems and circuit breakers. That’s good news, since something like a new electrical panel can cost $1,000 to $5,000. However, coverage may vary depending on your warranty contract's specific terms and conditions.
Many home warranty companies cover electrical issues.
Jump to insightElectrical coverage can extend beyond just outlets and switches.
Jump to insightYour policy may not cover damage caused by something other than normal wear and tear.
Jump to insightWhat electrical services does a home warranty cover?
When you think of electrical, you probably think of your home's outlets and light switches. While home warranty plans can cover problems with those, they can also cover much more, such as:
- Electrical for heating and cooling units
- Direct current (DC) wiring
- Breaker boxes
- Built-in attic, exhaust and vent fans
- Electrical parts of the pumps and motors of your plumbing system
- Light fixtures
- Electrical connected to sump pumps
- Circuit breakers
- Electrical systems of whirlpools
- Doorbells
When you sign up for a home warranty, check to see if the plan covers both the existing electrical and any you will add in the future. Some plans just cover the existing home's electrical.
Potential exclusions to electrical home warranty coverage
Even with the best home warranty companies, there will always be some stipulations in your contract that may get your claim denied. Here are a few things that your plan may not cover:
- Damage that’s not from normal wear and tear
- Circuit overloads
- Damage from lightning strikes or other “acts of God”
- Power boxes and wiring that’s not connected to your home’s foundation
- Damage from power failure
- Wiring in outbuildings, detached garages, barns, etc.
- Damage from power surges
What to do if your home warranty doesn’t cover electrical issues
If your home warranty plan doesn’t cover electrical issues, be sure to check with the company. It may have a different package that does include electrical. There’s always the option of switching to a company that does offer comprehensive electrical coverage, like American Home Shield. If that isn’t an option and you’ve recently moved into a new home, check your builders insurance for electrical coverage.
Paying out of pocket for electrical repairs is another option if your warranty doesn’t provide coverage. Costs can vary depending on the type of repair. For example, replacing an outlet or light switch might cost under $200, while larger projects, such as rewiring or replacing a breaker panel, could run several thousand dollars. Hiring a licensed electrician ensures the work is done safely and up to code, but it also increases the overall cost.
If you decide to pay out of pocket, it’s important to get multiple quotes from local electricians so you have a sense of fair pricing. You may also want to set aside a budget for ongoing electrical maintenance to avoid unexpected expenses in the future.
FAQ
What does a home typically warranty cover?
Home warranties usually cover large appliances, built-in microwaves, water heaters and systems like HVACs, plumbing, ductwork, pool heaters and well pumps. Some plans also cover additional items, like pest control, septic systems, central vacuums, sump pumps and more.
Is wiring covered under warranty?
Many home warranty companies cover electrical. Be sure to check your contract to see what areas of electrical are covered.
What is not covered by a home warranty?
Typically, any damage caused by anything other than normal wear and tear isn’t covered. A home warranty company may also deny a claim for appliances and systems that aren’t properly maintained.
Does a home warranty cover electrical panels and breaker boxes?
Most home warranty plans that include electrical coverage will cover electrical panels and breaker boxes, though the extent of coverage may depend on your provider.
Does a home warranty cover electrical panel replacement?
Some home warranty companies cover electrical panel replacement if the issue is due to normal wear and tear. Always review your contract to confirm.
Will my home warranty cover code upgrades if my wiring is outdated?
Home warranties typically do not cover the cost of bringing systems up to current code. This is usually considered an exclusion, so check with your provider.
Bottom line
While many home warranty companies do cover electrical, you may not get your claim approved if the situation doesn’t meet certain conditions. Be sure to look over your contract and contact the company if you have any questions.
