What A Home Warranty Doesn’t Cover

A home warranty is good to have to cover your major systems and appliances. But, what does a home warranty not (typically) cover that you might expect it to?

Sometimes it’s hard to really read through the lines when looking over a home warranty contract but it’s important you review your particular home warranty before placing your first work order.

A home warranty will cover major breakdowns in your appliances and system but does not cover some of the following common problems a homeowner may experience:

• Ice makers
• Secondary refrigerator outside of the kitchen
• Breaks in your plumbing caused by roots or freezing
• Faucets and shower heads
• Plumbing access by removing cabinets or tiles, etc.
• Commercial grade appliances
• Cleaning or modification of ductwork
• Secondary damage caused by a covered item (ie. plumbing leak)
• Any plumbing or electrical outside of the main confines of the home (leaks, spickets, outside lights, irrigation or sprinkler systems)
• Portable hot tubs (must be built-in & plumbed on most home warranties)
• Improper installation of existing equipment
• Televisions or other electronics
• Cosmetic items such as handles, knobs, dials, appliance doors
• Springs or other hardware associated with your garage door opener
• Slab leaks over a set limit per term
• Sinks
• Alarm and conference systems
• Failures due to lack of maintenance

Please be aware some home warranty companies allow you to add additional coverage which may include the items mentioned above. Please ask before purchasing your home warranty contract!

Ask Before Purchasing Your Warranty

Q: What Questions Should I Ask When Purchasing My Home Warranty?

A: Here are 10 questions to ask before buying your home warranty contract.
Not all companies are created equally! There are many things you should consider and questions to ask before purchasing your home warranty. Sometimes these are things you may not think of before it’s too late.

So when you call for a quote, or are sitting at the closing table with your agent, here are a few things to consider before saying yes:

1. Price
You obviously want to know what the up-front cost to purchase the contract is but have you thought about the renewal next year? Almost all companies have a second-year increase on premium costs. Also, real estate agents say your warranty is included in the deal at closing. But does that mean the price has been included before or after your agreed price? Make sure that point is clear. What about the cost for each work order? Are you able to get a lower premium if you raise the cost of each service call that is made? These are all points to consider.

2. Limits
Does the company have an annual limit for all work placed? What about limits on particular items? Some companies may also have a paragraph in the contract that allows them to “buy out” your contract (usually for hundreds of dollars) rather than replacing a system or appliance at the time you have a work order to place. Most companies have limits on your concrete slab foundation if you do not have a crawl space or basement and were to have a leak (Usually $500.00 per year). Also, boilers or steam type heat systems will also be limited (Usually $1,500 per year).

3. Turnaround Time
How long will it take you to get service once you’ve placed a work order? Is there an additional fee for emergency service? How strong is the network of technicians available to that company? Most home warranty companies will allow emergency service at no additional costs so long as the repair is causing secondary damage (a major plumbing leak), there are elders and miners in the home during heat waves, or medical conditions such as asthma will also prompt for immediate emergency service. The norm for home warranty emergency service is 24 hours and 3 business days for a normal service (think dishwasher).

4. Covered Items
Are all items you’d like covered on the agreement? Most companies allow an additional upgrade for cosmetic features, code and permit fees, and more to be included in the contract. Ask your representative if this upgrade is available.

5. Proof of Maintenance
Like any warranty you will need to maintain the items you have covered. Home warranty companies will deny any work orders placed if the technician finds you have lacked to maintain the system or appliance. This is a grey area because some companies will require you keep proof of maintenance, while other companies just request the maintenance and do not cover a system or appliance if it fails due to lack of maintenance. Know before you have to place a work order and you haven’t kept your maintenance receipts.

6. Contractors
Does the company offer a public list of contractors they’d call on in the event of a work order? Most don’t, but you can ask for a sample by calling the company’s service department with, “If I were to have a leak, could you tell me a few companies you have available for a referral”? Some home warranty companies use network technicians that could be up to 100 miles away from your home depending on your location. This means slower service for you when you have a major breakdown.

7. Hours of Operation
Does the company have support open 24/7? Most major home warranty companies do, but you’ll still be bound by the next business day unless it’s a major emergency. But, it’s important that a company is open after major business hours. Also ask if there is a website available to place claims online– and if that system will slow down the process vs. phone work orders.

8. Payment Options & Contract Terms
If you’re purchasing the contract with your home it’s likely that this won’t be a problem. But, if you already own the home or are considering renewing your contract it’s important to know what the terms for payment are and also the contract length. Most home warranty companies will allow monthly payments (ask if there is an additional fee associated with this option) but the contract will still be for 12 months. You may have to pay a penalty, and also pay for the serviced you’ve received during that 12 month term if you cancel before that year is up. Are you able to cancel by phone, and do you get a refund if you cancel within the first 30 days?

9. Complaint Resolution
What options do you have if the company has denied a work order that you believe should have been covered? Ask about the complaint resolution policy before buying your warranty. Are you able to get a second opinion at no additional charge if you aren’t satisfied with the original work order? And is there a third party to make sure you are satisfied as a home warranty customer?

10. BBB Rating
What is the company rated with the Better Business Bureau? Are there outstanding complaints that have not been answered? The easiest way to do this research on your home warranty company is to head over to BBB.org and search by phone, company name, or website address.