What’s not covered by a home warranty?
Home warranty coverage plans have limitations and are not all inclusive. There are certain things that Home Warranty Service Agreements won’t cover, such as pre-existing problems, unusual wear and tear and items covered by homeowners insurance. Today, we’ll run through a common list of what’s not covered by a home warranty to help you prepare for your future.
Home warranties don’t cover pre-existing problems
Home warranties cover systems and appliances that are in good health when you sign your Home Warranty Service Agreement. You cannot purchase a Service Agreement to cover items that have problems that exist before you purchased it.
Many providers may request a copy of your home inspection prior to offering a Service Agreement. This is why it’s so important for home buyers to negotiate with home sellers about repairing or replacing pre-existing problems as part of the offer.
They don’t cover improperly maintained systems or appliances
Your home’s systems and appliances need regular maintenance to ensure they work well. For example, you need to replace your HVAC system filters regularly. You should also drain your water heater once a year to prevent sediment buildup. Essentially, you can’t simply neglect your systems and appliances and expect a home warranty to cover that neglect.
Most providers require you to do regular maintenance on your systems and appliances to limit or avoid breakdowns. Fortunately. 2-10 Home Buyers Warranty (2-10 HBW) has several maintenance guides on our homeowner blog that you can search for to help you maintain your systems and appliances.
They don’t cover secondary damages when a system or appliance breaks
Home warranties only cover primary problems to systems and appliances. They don’t necessarily cover damage caused by those primary problems.
Let’s say your dishwasher breaks and floods your kitchen. The flood warps your floor and causes other water damage in the kitchen.
Your Service Agreement may cover your dishwasher’s repair or replacement. However, it won’t cover secondary damage caused by the flooding, such as the warped floor or other water damage. Those problems would most likely fall under your homeowners insurance coverage. This is a great reason why you should have both a home warranty and homeowners insurance.
Home warranties typically don’t cover walls, windows and doors
Home warranties don’t usually cover structural items, like walls, windows and doors. Depending on your coverage and the age of the home, these items may be covered by a builders warranty or under your homeowners insurance policy.
Home warranties usually don’t cover leaking roofs, but they may
One of the most common mistakes homeowners make is assuming that their Service Agreement covers roof leaks. Typically, they don’t cover leaking roofs within their standard coverage. A leaking roof is a structural problem, not a system or appliance issue.
If your home is 10 years old or younger, your builder may have provided a builders warranty to cover that problem. Otherwise, you should check to see whether your homeowners insurance covers you.
Fortunately, with 2-10 HBW, you can enhance your Service Agreement with optional roof leak coverage starting at less than $9 a month.
Home warranties don’t cover sprinkler systems
Most don’t provide standard coverage for outdoor plumbing, including sprinklers, faucets and valves. Specifically, 2-10 HBW does not cover outdoor sprinkler systems. However, 2-10 HBW does cover exterior hose bibbs.
Home warranties don’t cover modifications to accommodate replacements
Usually, providers will try to replace broken systems and appliances with items of similar size. But sometimes, that’s not possible, such as when building codes change between the initial system/appliance installation and the breakdown. In cases where you’d need to modify the space to accommodate the replacement, your Service Agreement will not cover the cost of the modification to the space.
Likewise, if a repair or replacement requires electrical modifications, your Service Agreement might not cover those electrical modifications. Always refer to your Service Agreement for more details.
Other issues that may not be covered
Here are some other general things your Service Agreement likely will not cover.
- Items covered by a manufacturers warranty
- Damage covered by homeowners insurance (e.g., fire, flood or extreme weather)
- Cosmetic defects to appliances, such as scratches or dents
- Damage from termites or other pests
- Improper installation
Although home warranties aren’t all inclusive, they can still protect your budget extremely well. At 2-10 HBW, we strive to make protecting your home simple and affordable. That’s why we offer comprehensive coverage. It’s also why we let you enhance your coverage with options. When you purchase a Service Agreement from 2-10 HBW, you’re covered against the most common and expensive systems and appliances breakdowns.
2-10 HBW offers the most comprehensive home warranty coverage for homeowners. Let us help you protect your home.