Do Home Warranties Require Inspection?

Do I need an inspection for my home warranty?

Home warranty companies typically do not require a home inspection before you purchase a plan. Even though most don’t require an inspection, some do, so be sure to ask before signing up. An inspection may make a home warranty cost more than you are willing to pay.

If you just bought your home and an inspection was done at the time of purchase, you’re probably covered if the home warranty company you choose needs proof of inspection.

Home inspection costs

The typical cost of a home inspection averages from $300 to $500. However, this number can vary depending on several factors, including the location, size and age of the home.

Additionally, if your home has additional features, such as a pool, a detached garage or a fireplace, may influence the costs of an inspection. Your inspector may also recommend additional tests like mold inspections, environmental hazard testing or plumbing evaluations. Supplemental aspects like these can cause the inspection cost to go up to $2000 to $3000.

Why getting an inspection for a home warranty may be a good idea

While most home warranty companies don’t require an inspection, it may be a good idea to get one anyway. Home warranty companies often exclude preexisting conditions from coverage and have a waiting period (commonly 30 days) from the time of purchase before coverage begins. This is to prevent claims on issues already present before you purchased the home warranty.

So, if you get a home inspection before you get your home warranty, you have proof that everything was in good condition before you purchased a plan. And, if the inspection does find problems, you can get them fixed before you get a home warranty. This means that the home warranty won’t be able to deny your claim for a preexisting condition.

Of course, a few home warranty companies don’t require an inspection and cover preexisting conditions. In this case, you may not have to worry about any of this. Just be sure to check the contract for anything that may cause your home warranty company to deny your claim.

What an inspection won’t protect you from

Normal home inspections cover a wide range of areas in your home that are also covered by home warranties, like:

• Roof damage
• Water leaks
• Electrical problems
• HVAC problems
• Termites
• Septic problems

That’s not everything you’ll need inspected. Your home warranty will probably include appliances, including:

• Dishwasher
• Oven, range and cooktop
• Built-in microwave
• Trash compactor
• Garbage disposal
• Clothes washer and dryer
• Garage door openers
• Refrigerator

Some home inspections will cover built-in appliances, but it’s not guaranteed. It’s important to check with the inspection company to see what they will check for you.

What to keep on hand for appliances not covered by inspection

For parts of your home not covered by inspection, a maintenance record comes in handy. Keep all the receipts and documentation that a repair technician gives you when you get an appliance repaired. You can use the documentation to prove that a technician fixed your appliances and they were in good condition before you purchased your home warranty plan.

These records can accumulate quickly. To keep track of these repairs, it’s recommended to utilize a detailed maintenance log that keeps track of information like the date and type of repair made.

It’s important to note that an inspection or repair documentation may not always protect you from a preexisting condition claim denial. There’s always a chance that the home warranty company will assert that the report was inaccurate.

Bottom line

While most home warranties don’t require a home inspection, it may be a good idea if you can afford one. It will protect you from claim denials due to preexisting conditions and alert you to any problems your home may have.