What Does A Home Warranty Cover?

Last updated: June 4, 2023


When purchasing a house, it’s like stepping into a realm filled with unknowns. Will the refrigerator last until next year? How much life is left in the HVAC system? Here, a home warranty can be your lifesaver. 

But what does a home warranty cover exactly? Having a home warranty is like having a safety net. It helps homeowners deal with unexpected costs arising from appliance or home system breakdowns.

The Concept of a Home Warranty

To fully grasp what a home warranty covers, it’s essential to understand what it is and how it differs from home insurance.

Home Insurance vs. Home Warranty

Home insurance typically covers risks like fire, theft, or natural disasters, while a home warranty covers the repair or replacement of home systems and appliances due to age or wear and tear.

How Home Warranty Works

Home warranty works in a fairly straightforward manner. You make a claim when a covered item breaks down, the home warranty company sends a service technician to diagnose and fix the problem, and you pay a service call fee.

Components Covered by a Home Warranty

Most home warranties cover major systems and appliances, but the extent of coverage may vary based on your plan.

  • Appliances Coverage: Commonly covered appliances include refrigerators, ovens, washers and dryers, dishwashers, and more.

  • Systems Coverage: Home systems like HVAC, electrical, plumbing, water heaters, and sometimes even pools and spas are usually covered.

Factors Influencing Home Warranty Coverage

Several factors can affect the extent of coverage in your home warranty.

Age of the Home

Older homes might have outdated systems and appliances, requiring additional coverage.

The Condition of Appliances and Systems

Well-maintained appliances and systems are more likely to be fully covered.

Choosing the Right Home Warranty Plan

With the variety of home warranty plans available, it’s important to choose the right one.

Tips for Selecting a Home Warranty

Choosing the right home warranty plan might seem daunting, but by keeping some key points in mind, you can navigate the selection process with ease. Here are some useful tips:

  • Identify Your Needs: Start by making a list of all appliances and systems in your home. Prioritize them based on their age, condition, and how crucial they are to your daily living.

  • Read the Fine Print: Every home warranty contract will have its terms and conditions. It’s essential to read these carefully to understand the extent of coverage, exclusions, limitations, and the company’s process for claims and service calls.

  • Compare Various Plans: Don’t settle on the first plan you come across. Compare different plans from various companies. Look at aspects like coverage, cost, customer reviews, and company reputation.

  • Check Service Call Fees: Most home warranty contracts involve a service call fee per repair incident. Ensure you’re comfortable with this amount.

  • Understand the Claim Process: Companies may vary in their claim process. Choose a company that provides a simple, straightforward claim process.

  • Consider Coverage Caps: Some companies may place limits on the total cost they’ll cover for certain appliances or systems. Be aware of these caps.

  • Ask About Pre-existing Conditions: Some home warranties might not cover pre-existing conditions or systems and appliances that weren’t properly maintained.

Remember, the goal is to find a plan that gives you the best value for your money and covers your specific needs effectively.

The Cost of a Home Warranty Plan

The cost can range from several hundred to over a thousand dollars annually, depending on the coverage and company.


1. Does a home warranty cover pre-existing conditions?

Typically, a home warranty does not cover pre-existing conditions, but this can vary by company.

2. Does a home warranty cover every repair?

Not all repairs. A home warranty only covers repairs due to normal wear and tear.

3. Is a home warranty worth it for a new home?

Even new homes can have issues. A home warranty can provide added protection.

4. What’s the difference between a manufacturer’s warranty and a home warranty?

A manufacturer’s warranty generally covers specific appliances for a certain period, while a home warranty covers multiple items in your home.

5. Can I buy a home warranty at any time?

Yes, a home warranty can typically be purchased at any time, not just when buying a new home.

Conclusion: The Value of a Home Warranty

A home warranty offers peace of mind, safeguarding against unexpected repair costs. It ensures the longevity of your home’s systems and appliances. This essential safety net transforms the uncertainty of potential breakdowns into comfort and stability in your homeownership journey, paying for itself through security, savings, and simplicity.

Find out how you can improve your home security from our blogs at Security Forward to stay updated on home protective measures for your loved on it.

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