What Does a Home Warranty Cover?

When your refrigerator stops working or your HVAC system breaks down, a home warranty can be a lifesaver. But what does a home warranty actually cover? In short: the essential systems and appliances in your home, usually things like your electrical, plumbing, and kitchen units. The details vary by plan, but the goal is the same: to protect you from unexpected repair costs.

Home warranties are service contracts (not insurance) that kick in when appliances or systems fail due to everyday wear and tear. They typically offer a set dollar benefit and a service call fee making budgeting easier and helping avoid those surprise repair bills.

What Home Warranties Typically Cover

Systems Coverage

These are your home’s essential mechanical systems, often included in even the most basic plans:

• Heating system (furnace, heat pump)
• Air conditioning
• Electrical wiring and panels
• Plumbing and water heaters
• Duct systems

Appliance Coverage

Higher-tier plans or add-ons often include common household appliances:

• Refrigerators
• Ovens, ranges, cooktops
• Dishwashers
• Laundry machines (washer and dryer)
• Garbage disposals
• Microwaves (built-in)

Enhanced or Premium Coverage

Some providers offer extras or upgraded protection for an additional cost:

• Roof leaks or plumbing stoppages
• Whole-home systems (pool, well, septic)
• Electronics protection
• Guest house or structural components

What’s Not Covered

Even the best home warranty doesn’t cover everything. Here’s what’s typically excluded:

• Pre-existing conditions or unmaintained equipment
• Structural issues like roofing, foundation, or framing
• Known defects or installation errors
• Cosmetic damage, rust, and corrosion
• Non-mechanical issues (e.g., broken handles, cosmetic wear)

Why Understanding Coverage Matters

Knowing what a home warranty covers helps you make informed decisions:

• Peace of mind: Avoid unexpected major expenses if something breaks.
• Budget clarity: Predict costs with monthly premium plus fixed service fee.
• Plan wisely: Choose coverage based on your home's age, appliances, and systems.

Is a Home Warranty Worth It?

You might want a home warranty if:

• Your systems or appliances are aging.
• You lack the time or expertise to arrange repairs.
• You’d like warranty-level protection without managing contractors.

It may be less useful if:

• Your systems and appliances are new and under warranty.
• You prefer paying for repairs out-of-pocket.
• You’re in the process of selling your home (budget for buyer incentive instead).

Bottom Line

A home warranty typically covers the major mechanical systems and appliances in your home saving you from unexpected breakdown costs. While it doesn’t replace home insurance or cover everything, for many homeowners, the convenience and cost predictability are worth the price.