What Does a Home Warranty Not Cover?

What does a home warranty cover?

Home warranties cover appliances and systems found in your home. Some of the items typically covered include:

• Dishwashers

• Ovens, stoves and cooktops

• Built-in microwaves

• HVAC systems

• Plumbing

• Electrical

• Refrigerators

• Garbage disposals

• Garage door openers

• Ductwork

• Clothes washers

Some home warranty companies also offer additional services like rekeying for locks, pest treatment and gutter cleaning. Add-on coverage options often address a variety of other coverage needs, including roof leak repairs, septic systems, pools and spas, well pumps, and even electronics like laptops and televisions.

What’s not covered by a home warranty?

While home warranties cover a wide range of things around your home, there are some things they won’t cover. Typically, home warranties don’t include items that are part of your home's construction. So, home warranties won’t cover any foundation problems or problems with insulation, doors, windows and faulty support beams.

Anything found beyond the perimeter of your foundation is typically excluded from your home warranty plan, as well, although some items, like pools and hot tubs, may be available as add-ons or in comprehensive plans. Fences, appliances or systems found in guest houses, outdoor kitchens and anything within detached garages are usually not covered. This also applies to outdoor plumbing fixtures, such as sprinkler systems, underground pipes, septic systems and well pumps.

If you use your appliances or systems for any purpose that's considered commercial rather than residential — for example, if you operate a home daycare or short-term rental — they usually aren't covered under a standard home warranty, either. Be sure to check your contract to see if this may be a problem.

It’s also worth noting that even if an appliance or system is included, coverage may not automatically extend to all its parts. For example, air conditioning system coverage may exclude your AC’s refrigerant and coils, and while a garage door opener is commonly included, the garage doors and track assembly are typically not. Similarly, a refrigerator icemaker may not be covered even if the refrigerator itself is part of your plan.

Home warranties also don’t typically pay to fix secondary damage caused by the appliance or system failure, or by the repair process itself. This means that if your washing machine overflows and floods your home, damaging your floor, the warranty will repair the appliance, but not the damage to your flooring — and if a repairperson has to cut into your drywall to fix a wiring short covered by the warranty, they won’t fix the wall.

Warranty limitations and exclusions

Home warranty companies usually have limitations and exclusions that can prevent certain items from being included in your coverage. Companies often exclude preexisting conditions from coverage, meaning any issues already there before you bought the warranty won't be covered.

Any damage not caused by normal wear and tear isn’t covered, either. This means these situations aren’t covered by your home warranty:

• Damage caused by flooding, fire, accidents

• Items that were not installed properly or don’t comply with local building codes 

• Appliances or systems that fail due to neglect or improper maintenance

• Cosmetic damage like scratches, dents, dings or rust

Limits may also apply for larger homes, multiunit properties, or multiple systems or appliances. Check your contract to see if there is a coverage limit based on square footage, and ask your provider if additional items — for example, an extra refrigerator or secondary HVAC system — can be added to your plan.

Coverage caps and service fees

Most home warranty companies charge a service fee each time a technician is dispatched to your home. This fee typically ranges from $75 to $125, depending on the provider and your plan. These service fees are paid out of pocket and are required even if the repair isn’t ultimately covered. Be aware that you usually can't choose your own service provider; the warranty company will almost always send its own network technician.

Coverage caps vary by item and provider, so it’s important to review your policy carefully. For example, one company may only cover up to $1,500 for HVAC repairs, while another might provide up to $3,000. After that cap is reached, you’re expected to pay the rest. Understanding these caps can help you avoid unexpected expenses if a repair exceeds your plan’s maximum payout.

Waiting periods and preexisting conditions

Most home warranty plans do not begin coverage immediately after purchase. Instead, there’s typically a 30-day waiting period before you can file a claim. This waiting period is designed to prevent coverage of preexisting problems and fraudulent claims.

Preexisting conditions — issues that occurred before the home warranty was purchased — are almost always excluded from coverage. These can include broken appliances, faulty systems or problems that were known or should have been known during a home inspection. If the issue is found to have existed before coverage began, the provider will likely deny the claim.

It’s important to read the fine print in your policy so you understand exactly when your coverage starts and what qualifies as a preexisting condition.

FAQ

Bottom line

It's important to understand what your home warranty doesn't cover to set the right expectations and make the most of your plan. Make sure to give your contract's terms and conditions a good read-through so you know exactly what's included and what's not.