What voids a home warranty?
Check your coverage to avoid costly surprises later
A home warranty offers protection against costly repairs and replacements of home systems and appliances. However, a home warranty has specific guidelines and conditions like any contract. Not adhering to these can void your warranty, leaving you without coverage when you need it most. Here’s what voids a home warranty and now to avoid these pitfalls to maintain coverage.
Home warranties don’t cover appliances or systems that have been improperly installed.
Jump to insightHome warranty companies don’t usually cover preexisting conditions.
Jump to insightCode violations can get your coverage denied.
Jump to insightNeglect and poor maintenance
One of the most common reasons a home warranty provider might void your coverage is neglect or poor maintenance of covered items. Home warranties generally cover breakdowns due to normal wear and tear, but your claim could be denied if a failure is linked to neglecting maintenance.
For example, not cleaning your HVAC filters regularly can lead to breakdowns that your home warranty won't cover. So, check the owners manual and follow the maintenance guidelines for all your appliances and systems.
Improper installation or modifications
Your home warranty may not cover appliance or system damage or malfunctions caused by improper installation according to professional standards or manufacturer specifications.
Similarly, unauthorized modifications or repairs that alter the system's or appliance's functionality or safety can also void your warranty. Always use qualified professionals for any installations, modifications or repairs to ensure your coverage remains in effect.
Preexisting conditions
Most home warranty providers exclude preexisting conditions from coverage. Technicians often assess preexisting conditions during repair calls. If an appliance or system has a detectable issue that could have started before your warranty period began, your home warranty could deny any related claims.
Code violations and illegal installations
Homes that don't comply with local building codes or contain illegal installations might face denied claims. For example, if an electrical system is not up to code and causes a problem, the warranty provider may void coverage due to the inherent risks and legal issues.
Failure to pay service fees or premiums
Just like any service, failing to pay your home warranty premiums or any required service fees can result in cancellation or suspension of your contract. This means you could be left without coverage when you attempt to make a new claim.
How not to void your home warranty
You can ensure that your home warranty does what it’s supposed to do by doing your part:
- Perform regular maintenance on all covered appliances and systems.
- Use professionals for installation and any major repairs.
- Read and understand your warranty’s terms and conditions.
- Keep records of maintenance, repairs and any communications with the home warranty provider.
- Follow local codes for building.
FAQ
How much does a home warranty cost?
It depends on the plan you choose, but home warranties typically cost between $450 and $1,400 per year.
Is a home warranty worth it?
Whether a home warranty is worth it is all about weighing the potential risks and deciding what makes the most sense for your situation. If you have a brand-new home or appliances, you might not need a home warranty just yet, thanks to existing manufacturer warranties. However, if your home's systems or appliances are getting older and might need repairs soon, a home warranty could be a smart way to save on those future repair costs.
What are the pitfalls of a home warranty?
Home warranties come with their own set of rules, including certain limitations and exclusions that might cause your claim to be denied. Typically, home warranties cover issues that arise from normal wear and tear. So, it’s good to know what’s included in your plan and what’s not to ensure you're covered when you need it most.
Bottom line
A home warranty is a useful tool for managing home maintenance costs, but it requires a bit of care and attention to maintain. By understanding what can void your warranty and actively taking steps to comply with the terms, you can ensure that you continue to benefit throughout your contract term.
