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What Does a Home Warranty Cover?

Graham Cook  — January 12, 2019

When you’re purchasing a new home or want to protect the appliances and systems in your current house, a home warranty can provide you with coverage that homeowners insurance policies don’t offer. If you’re wondering just what a home warranty covers, keep reading to unlock your biggest questions about protecting your home investment.

What Is a Home Warranty?

Simply put, a home warranty is similar to warranties for electronic devices. You purchase protection in case they break or start to malfunction, and the warranty company pays for the item to be repaired or replaced. With a home warranty, if one of your appliances breaks down, it will be repaired or replaced without any additional cost to you. All you have to worry about is the monthly home warranty premiums.

If the item is fully covered by your policy, an appointment will be scheduled with an approved service provider. On the date of the appointment, a service technician will arrive to assess the damage and determine if the appliance needs to be repaired or replaced. While you will need to pay a service call fee even if the appliance is covered by your home warranty policy, every other expense from the repair work will be covered by the policy.

What Does a Home Warranty Cover?

When you’re searching for the right warranty policy for your home, there are a wide variety of coverage types that you’ll want to consider alongside the basic coverage. Most home warranties will cover all of the major appliances that are typically found in a home, which include:

  • Dishwashers
  • Stoves
  • Refrigerators
  • Dryers
  • Washers

These policies also commonly provide coverage for major systems in the home like your electrical system, plumbing system, hot water heater, and HVAC system. That means a failure of any of the components in these systems or appliances will be repaired or replaced if the breakdown occurs for normal reasons. It’s possible to add additional coverage to your policy that extends to spas, pools, or a second refrigeration unit in your home.

Keep in mind that homeowners insurance policies offer separate coverage for the damage to appliances in your home in the event of a natural disaster or theft. A home warranty policy is designed to be used when the system malfunctions because of standard wear and tear.

When Should Home Warranties Be Purchased?

It’s important to understand that there’s no exact time at which you need to purchase a home warranty. But it’s recommended that you purchase the home warranty policy when you buy your home. Having said that, one of the best aspects of a home warranty is that it can be purchased at any time throughout your ownership. No matter when you purchase the policy, it can provide you with peace of mind that you won’t need to break the bank to replace an appliance or system because of an unforeseen complication.

Can Home Warranties Help When Selling a Home?

While many homeowners purchase home warranties simply to protect their home and bank account, an added benefit is that they can be highly beneficial when selling a home. Though these policies usually only last for a period of one year before they need to be renewed, including a year-long home warranty policy in the sale of your home can make your property much more appealing to prospective buyers. And a home warranty policy is easy to transfer from one homeowner to the next.

There’s no way to stop the unexpected from happening, but you can prevent it from causing you to spend a huge sum of money. That’s why many homeowners consider a home warranty to be such a great investment. If you’re looking for a home warranty that will provide your home with the coverage it needs, be sure to take a look at legitimate home warranty reviews to help you find the best option for you.