You have a new home, and someone suggests getting a home warranty. What does the service cover? A friend filed a claim, but the insurer said the product was not covered. How do you know what your home warranty will not fix or replace? We give you some common home warranty repair exclusions in this post.
Damage from Natural Disasters
Natural disasters fall under the coverage for home insurance, not a home warranty. When your basement floods and shorts out all of your appliances, the house insurance company is the one to call. Your home warranty coverage is good for refrigerators that fail. Acts of God are things you will find under a home warranty exclusion clause.
If you buy a house that’s been damaged by the previous owner, chances are it won’t be covered by your home warranty. This includes problems with the plumbing, HVAC, or other home systems. Whether or not you know about the damage has no bearing on the warranty exclusion. Improper repairs and previous damage are no-coverage items in home warranty contracts.
Damage to the Foundation
Most home repair contracts cover the primary systems of a home, but not the major structural items like roofs and foundations. A slab leak is something you will pay out-of-pocket for if you have an issue. Consumer Affairs says that some home warranties only cover fixing an existing problem rather than replacing a faulty system. This information means you are liable for replacements if your dryer stops working or you need a new furnace igniter.
Chimneys, Roofs, and Windows
Home warranties are a supplement to a homeowner’s insurance policy because they cover the minor operating systems while insurance is for replacing the bigger ticket items. Roofs and windows are major items that can last for decades, where hot water heaters and plumbing might need repairs within five to ten years. The short-term projects are items where home warranties can be helpful for homeowners.
The Bottom Line
Even when you take these common warranty repair exclusions into consideration, you’ll still be getting a serious return on your investment. With trusted home warranty providers, you’ll only have to pay a small service fee to get appliances or systems repaired. That’s a much better deal than having to drain your bank account to fix your plumbing!