What Is Covered in a Home Warranty?

Home warranties may be purchased by individuals buying a new or used home, landlords, individuals selling their homes or investors. Each company's coverage is determined by the terms of its contact, but basic home warranties generally cover the parts and labor on or replacement of major home equipment and systems.

Appliances

A basic home warranty usually covers large appliances such as the refrigerator, stove, oven, built-in microwave and dishwasher.

Central Heating

Central heating and furnaces are most often covered by a basic plan. However, many basic home warranties do not offer coverage for an air-conditioning unit.

Plumbing

Covered items under plumbing include leaks and breaks in water lines, showers, tub valves, sump pumps and mainline stoppages.

Electrical

With basic coverage, all electrical systems are covered, as are doorbells and smoke alarms.

Add-Ons

Some examples of add-on items to a basic policy include a pool, spa, well pump, septic system, and second refrigerator or freezer. In addition, an air-conditioning unit, a washing machine and a clothes dryer can be included as an add-on.

Premium Coverage

Home warranty companies will provide premium coverage for an additional fee. This coverage would include parts for repairs, such as faucets and fixtures.

References

• American Home Shield: Home Warranty Plans and Pricing
• Fidelity National Home Warranty: Terms of Coverage
• U.S. Department of Housing and Urban Development: Glossary: Home Warranty