A home warranty is a contract with a company that agrees to pay to fix or replace major systems and appliances in your house if they malfunction or stop working. Unlike homeowner’s insurance, which covers damage caused by unforeseen events, home warranty guards against everyday wear and tear of household systems and devices. While the policy can be beneficial, you must carefully read the fine print. Here are ten things a home warranty doesn’t cover.
Pre-existing problems
Most home warranty policies don’t pay for fixing or replacing anything damaged or malfunctioning before the warranty was bought. You must pay from your pocket to resolve the problem in such a situation.
Outdoor fixtures
Some policies may cover outdoor fixtures like air conditioners but frequently exclude sprinkler systems, swimming pools, and spas. You may need a different approach if you want coverage for these things.
Cosmetic damage
Home warranties don’t cover cosmetic damages like scratches, dents, or rust but functional problems with your home’s systems and appliances.
Non-mechanical parts
They may exclude non-mechanical objects like knobs, handles, and shelves and only cover mechanical devices like HVAC systems.
Code violations
Your home warranty may not apply if a repair is necessary because an electrical system doesn’t comply with the law. It only covers natural wear and tear of systems and appliances, not problems brought on by violating building rules.
DIY repairs
The coverage may be void if you try to fix an item yourself or employ an unlicensed professional. Many policies demand that qualified, licensed professionals do repairs.
Acts of nature
While home warranties can guard against everyday wear and tear, they don’t cover damage brought on by calamities like hurricanes, earthquakes, or floods. A separate homeowner’s insurance may cover such occurrences.
Commercial use
Your policy might not apply if you use your house for commercial purposes.
Inadequate maintenance
Your house warranty could be void if a problem with your home’s systems or appliances was brought on by carelessness or lousy care.
Unauthorized alterations
The plan may not apply if you change the systems or appliances in your house without the manufacturer’s or warranty provider’s consent.
