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What to Know About Home Warranty Coverage and Why It Matters

By Robin McKenzieMay 7, 2025Finance

Have you ever faced an unexpected breakdown of a major home appliance and wondered how you were going to afford the repair? A home warranty can be a valuable tool for homeowners looking to protect themselves from costly repairs and replacements. It provides peace of mind by covering systems and appliances that may not be included in standard homeowners insurance.

While many people are familiar with home insurance, home warranties work differently. Instead of covering damage from events like fires or floods, a home warranty typically pays for the repair or replacement of systems like plumbing, electrical, heating, and major appliances due to normal wear and tear. It’s especially appealing for homeowners with aging systems or those buying a previously owned home.

What Does a Home Warranty Typically Cover?

A home warranty offers a layer of financial protection when essential household items break down. While coverage can vary between providers, most home warranties include a few things.

  • HVAC systems (some plans offer the best home warranty for heat pump coverage)
  • Kitchen appliances such as refrigerators, ovens, and dishwashers
  • Laundry appliances like washers and dryers
  • Plumbing and electrical systems
  • Water heaters and garbage disposals
  • Optional add-ons like pool equipment, septic systems, or a second refrigerator

It’s important to request multiple home warranty quotes to see what different companies cover, especially if you have unique needs or older appliances.

What Isn’t Covered?

Even the best home warranty plans come with exclusions. Generally, home warranties won’t cover the following.

  • Pre-existing conditions
  • Improper installation or maintenance
  • Cosmetic defects
  • Structural issues such as roof damage or foundation problems
  • Items still under manufacturer’s warranty

Understanding these exclusions before you order home warranty coverage helps prevent surprises when it’s time to file a claim.

How Do You Get a Home Warranty?

Getting a home warranty is now easier than ever. Many companies allow you to order home warranty plans online without needing a phone call or appointment. You can quickly receive a home warranty online quote by entering your ZIP code, home size, and coverage needs.

Here’s what to do.

  • Compare multiple home warranty online quotes to find a provider that matches your budget and coverage requirements
  • Read customer reviews and third-party ratings
  • Understand the terms, including service call fees and payout caps
  • Look into companies offering free home warranty quote online tools
  • Choose the one that offers the best value and service for your household needs

You can even get home warranty quotes online that are tailored to your specific appliances and systems, which helps you avoid overpaying for unused coverage.

How Much Does a Home Warranty Cost?

Prices can vary, but on average, homeowners can expect to pay the following for certain costs.

  • $560 to $1,000 per year for standard coverage
  • $575 to $125 per service call or claim
  • Higher annual fees for comprehensive coverage or add-ons

The cost depends on your home’s size, location, the items covered, and whether you add extras like roof leak protection or sump pump coverage. Fortunately, home warranty quote tools make it easy to calculate your estimated costs before you commit.

When Is a Home Warranty Worth It?

Home warranties can be particularly beneficial if you are in certain situations.

  • Your appliances are more than five years old
  • You just purchased a home and aren’t familiar with its maintenance history
  • You want to avoid the hassle of finding service providers
  • You prefer predictable costs for household repairs

For homes with heat pumps or other high-maintenance systems, finding the best home warranty for heat pump coverage can make a significant difference in overall savings.

Choosing the Right Home Warranty Company

Not all home warranty providers are created equal. Some have extensive contractor networks and responsive customer service, while others may have hidden fees or long wait times. Here are a few tips to make the best choice.

  • Look for companies that offer transparent pricing with home warranty quote online tools
  • Make sure the contract clearly outlines what is and isn’t covered
  • Choose a provider with 24/7 claims processing and a wide technician network
  • Verify licensing and check the Better Business Bureau rating
  • Ask about workmanship guarantees for repairs

It’s smart to get multiple home warranty quotes and compare features before making a decision.

How a Home Warranty Differs from Home Insurance

A common mistake is assuming a home warranty and home insurance are the same. They serve very different purposes.

  • Home insurance covers property damage from unexpected events like fires, theft, or weather
  • Home warranties cover routine breakdowns due to age or normal use

Many homeowners carry both. Insurance protects against rare but catastrophic losses, while a warranty helps with frequent, lower-cost repairs.

Making Homeownership Less Stressful

A home warranty can bring peace of mind and stability in your budget by reducing surprise expenses. Whether you’re a new homeowner, have aging appliances, or just want extra protection, getting a home warranty quote online is a good first step toward protecting your investment. With numerous providers offering home warranty quotes online, it’s easier than ever to compare, choose, and customize a plan that fits your lifestyle.

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