What Is Home Warranty Insurance?

Home warranties differ from conventional homeowners' insurance. A homeowner's insurance policy covers damage caused by unforeseen risks, whereas a house warranty covers maintenance, repair, or replacement of essential home components.

Does My Home Have a Home Warranty?

Home warranties are insurance company-issued, renewable servicing contracts. Typically provided with the acquisition of a home, they are valid for one year. Due to the fact that homeowners' insurance does not cover damage caused by normal wear and tear, it is prudent to carry both types of coverage.

If you have a home warranty, you must read your policy carefully to see what is covered, as the contract specifies which appliances and systems are covered. For instance, your home warranty policy may cover the following:

Home Systems Coverage

The use of air conditioning - Including maintenance and refrigerant replacement for central air conditioning and wall air conditioners (window units are excluded)

Heating systems - Including (gas, electric, or oil-powered) forced air, enclosed hot water or steam heat, electric baseboards, room heaters, wall-mounted heaters, and other non-portable systems.

Ductwork - Including the repair of leaks or cracks in ducts, plenums, and dampers.

Interior pipework - Including unclogging sinks, tubs, showers, and toilets, replacing rusty or corroded pipes, and installing new faucets and valves.

Electrical interior systems - Including the main circuit breaker, fuse box, direct current wiring, exhaust or vent fans, doorbells, garage door openers, ceiling fans, and home security systems.

Water heaters (conventional and tankless), including replacement parts and adjustments to the building code

Toilet - Including repair, replacement, or removing clogs not caused by sewer line collapse or tree roots.

Roof leaks - Broken or missing shingles, dry rot, freezing and thawing cycles, and other typical deterioration

Appliance Insurance

Refrigerators - Including leak repairs and the replacement of ice machines, water filters, light bulbs, fans, and thermostats.

Laundry machines and dryers - Included are drain pumps, tub bearings, heating elements, drum rollers, and motors.

Cooking components - Including gas burners, ovens, cooktops, ranges, and built-in microwaves.

Dishwashers and trash compactors - As well as their drains, pumps, and valves

Supplemental Coverage

You may be able to supplement your insurance if your home has expensive-to-repair features or utility systems. Common add-ons consist of the following:

In-ground pools and spas - A house warranty may cover the majority of components of above-ground pools and spas, including the pump, blower motor, plumbing pipes, and electrical wiring.

The operation of suitable pumps - It is possible that insurers will not pay for holding tanks or re-drilling a well, but all components of a good pump that serves as the home's water source should be covered.

Sewerage systems - Insurance may cover mainline clogs that may be addressed without excavation, pumping out clogs that cause a septic backup, and replacing the sewage ejector pump.

Electronic devices - Computers, televisions, tablets, gaming systems, smart home systems, and computer accessories may be covered by a warranty (such as external hard drives).