When
the air conditioner breaks down in the middle of summer or the water heater
fails in the middle of winter, the bill for the repairs can be excessive. That
is where a good home warranty plan can come to the rescue. However, before you
sign up for a home warranty, you need to know what do home warranty plans cover, but even more important,
what they exclude.
What Do Home Warranty Plans Generally Cover?
Home warranty plans are service contracts that cover the repair and replacement of home systems and appliances that break down as a result of normal wear and tear. The exact items covered will totally depend on the plan that you select. Some of the common home systems and appliances the plans cover include:
● Major appliances: Refrigerators, ovens/ranges, dishwashers, washers
& dryers. These are the claims that are used most frequently.
● HVAC Systems: Furnaces, air conditioners, air ducts, and, in most cases,
heating and cooling systems.
● Water Heating: Standard tank or tankless water heaters are often
included in the home warranty plan.
● Plumbing and electrical systems: Internal plumbing fittings, drain
lines, water supply lines, electrical wiring from panels, switches, outlets,
etc.
Add-ons
are also available on some plans for less frequent or more expensive items,
such as pool and spa equipment, well pumps, or even septic systems or roof leak
repair in some cases.
What Home Warranty Plans Do Not Cover
There is no flawless warranty plan, and awareness of what do home warranty plans cover is equally important as knowing what they do not cover. Here are some typical exclusions:
● Pre-existing conditions: Problems that are in existence
before the commencement of the contract are usually excluded. If you already
have a leaky water heater or rusted wiring, you may not get coverage for that.
● Negligence, improper maintenance, or misuse: If the appliances or the
systems were not maintained properly as per the guidelines of the
manufacturers, then coverage might be denied.
● Cosmetic damage or normal deterioration: Items such as paint peeling,
floor wear, rust, etc., are usually not covered.
● Natural disasters, floods, fire, acts of God: They are almost always
excluded, since they are the risks included in other types of insurance.
● Outdoor elements/ external features: Sprinklers, patios, gates,
sidewalks, and drainage systems outside the foundation line are often not
included unless especially added.
How Coverage Decisions Are Made
Certain considerations that are used to determine whether a claim is covered include:
1. Age and conditions of the item: Appliances or systems that are not in good condition and are old may have restrictions in coverage.
2. Maintenance History: When there is proof showing that the maintenance is regular (for example, changing filters, having tune-ups), the claim has a higher chance of being approved.
3. Service Fee/ Deductible: Most of the plans require you to pay a service fee (also known as a trade call fee) every time a technician visits. Remember that cost.
4. Coverage limits: The warranties on some
systems or appliances might have limits on the extent they will cover. If a
repair or replacement exceeds the limit, you’ve to bill the rest.
Examples of What You’ll Likely Get
Here are some examples of items that many home warranty plan holders are covered by, on an average contract:
● Fixing a dishwasher that is
not draining properly
● Repairing AC systems that
have refrigerant leaks or failed compressors.
● Fixing the bursting pipes or
leaks in the supply lines inside the walls.
● Replacing an element in a
failed water heater.
With
providers such as Service Plus Home Warranty, you can expect most of
these common failures to be covered, depending on the selected plan.
Examples of Things That Won’t Be Covered
To explain what do home warranty plans cover does not cover:
● Something that was already
failing when you joined
● Damage caused due to
negligence (such as failure to clean clogged filters in HVAC)
● Cosmetic issues like
scratched doors or faded knobs in the oven
● Items that have been modified
or used in a manner that is inconsistent with the design (such as overloaded
circuits)
How to Choose the Right Plan
To select a plan that covers what matters most to you:
● List your major appliances
and systems
● Choose what add-ons you need,
for example, have a pool or spa, and see if their coverage is possible.
● Check the small print
regarding exclusions, charges, and limits.
● Compare premiums + service fees with the average repair/ replacement expenses in your neighborhood.
Why is it Important to Understand Coverage
When
you know what do home warranty plans cover, you have fewer surprises. A
properly selected plan provides coverage against unexpected failures,
streamlines the budget, and helps maintain household peace without sudden
repair bills. And with Service Plus Home Warranty coverage, clarity reduces headaches
and improves satisfaction at the time of making claims.
FAQs
1. What does a home warranty not cover?
A home warranty generally do not cover pre-existing conditions, negligence, improper use, poor maintenance, cosmetic damage, or damage from natural disasters.
2. Does a home warranty cover roof leaks?
Some home warranty providers offer something known as ‘Limited roof leak’ coverage, but it is usually applicable only for specific parts of the roof that happen due to normal wear and tear. The coverage can be different. So it’s best to review your plan.
3. What does a home warranty consist of?
A
home warranty includes service contracts that cover repair or replacement of
some of your home’s major systems and appliances, such as heating, plumbing,
refrigeration, electrical, etc., for a set period of time.
4. Does a home warranty cover foundation issues?
In
most cases, home warranty plans do not cover the foundation issues, as they are
termed as structural problems. The coverage of the plan applies to home systems
and appliances instead of structural repairs.
5. Which home warranty is the best?
There
are several types of home warranties available, and the best choice for you
depends on your needs. But, for instance, the home warranties offered by Service Plus Home Warranty are considered good for
their transparency.
