The limits of a home warranty coverage depend entirely on the home warranty plan that you sign up for. Different home warranty companies offer different coverage options. It’s up to you, then, to find the right plan to cover your unique home.
Learn more about what is and isn’t covered by your home warranty below:
What is Home Warranty Coverage?
Home warranty companies provide different types of services for all types of homeowners: whether they are a Home Buyer or a Home Seller:
- Home Buyers Protection: This type of coverage is for expecting or new homeowners that want to protect their home for the long-term.
- Home Sellers Warranty: In contrast, a home sellers’ warranty is there to make sure that you’re protected from any unforeseen household repair bills while you’re in the process of selling your home.
It’s important to note that the standard of services will differ slightly based on the home warranty provider that you decide to work with. In essence, however, most home warranty providers follow a standard that is imitated by other warranty companies.
Home Warranty Coverage
Most home warranties will cover the major components of a home as well as regular day-to-day appliances. Note, there will be differences in which major systems and appliances are covered in your plan based on the home warranty provider that you choose.
As an example, Total Home Protection, founded by David Seruya, provides what are called combination plans. That means that it combines select appliances and major systems in their plans in order to provide full-service packages. Which can include a mixed coverage for HVAC systems, plumbing, electricals, heaters, washers, dryers, refrigerators, and more.
It should also be noted that most home warranty companies also provide add-on packages for homeowners who want coverage for more expensive or unique systems and appliances. For example, Total Home Protection (THP) offers optional coverage for pools, spas, septic systems, and more.
Home Warranty Coverage Limits: Damages & Cost
Now that we know what home warranties usually cover, it’s time for us to finally answer the question once and for all: What isn’t covered by home warranties?
To keep things simple, we’ve broken these home warranty coverage limits into two categories: damages and costs. For the damages category, our list will be focusing on the types of damages that are not usually covered by home warranties:
- Cosmetic damages or defects
- Items presently covered by a manufacturer’s warranty
- Damages that are covered by home insurance (e.g. vandalism, weather, fires, etc.)
- Items with pre-existing conditions
- Improperly or wrongfully installed items
- Items that have been neglected or poorly maintained
- Secondary damages that occur as a result of covered items breaking
And as for the cost’s category, this list will be focusing on the extra costs that will not be covered by your home warranty company:
- Service Fee: Most home warranties will charge a service fee for each item serviced. That means that every time you submit a claim for an appliance or system, you will be charged a small fee ($60-$100) that you will pay directly to the technician to get your issues fixed.
- Annual Caps: Some providers will also limit how much they are willing to pay per year for repairs. These annual limits are often higher the more expensive the coverage you purchase. For example, your contract might place limits per item, which might limit your coverage to around $500 – $2,500 per year for that one specific item.
- Replacement Limits: It’s important to note that some home warranty providers don’t cover replacement costs unless you purchase one of their more premium plans. And that, if you do purchase one of those premium plans, that there is a cap to how much the service provider will pay for the replacement of that item. And, not unlike annual caps for repairs, these limits are subject to change depending on what item is being covered.
And so, we conclude our overview of the limits of home warranty coverage. Again, as we’ve stated before, please remember that this overview only covers the ‘standard’ for most home warranty companies. If you want specifics, the best thing to do would either be to review service contract samples (provided by most home warranty providers) or to contact a representative of the home warranty company you’re interested in for a more direct quote.