Home Warranties for Older Homes: What to Know Before You Buy

Why older homes are different

Warranty claims on older homes are more likely to be denied, usually for the same few reasons: the item was already failing before coverage began, the repair requires bringing old wiring or plumbing up to current code, or the item was installed improperly years ago. Choosing the right plan, and preparing before you buy, closes many of those gaps.

What to look for in a plan

• No age restrictions on systems or appliances
• Coverage for code violations, permits, and haul-away of old equipment
• High per-item caps, especially for heating and cooling
• Optional coverage for well pumps, septic systems, and sewer lines
• Coverage for 'unknown pre-existing conditions' that a normal inspection wouldn't have caught

Before you buy

Get a professional home inspection and keep the report, since it documents what was working when your coverage started. Have the furnace and AC serviced and keep the receipts. Read the plan's maintenance requirements so you know what records you'll need to show if you file a claim.

Questions to ask the provider

• Are there any age or make limits on covered items?
• Do you pay for code upgrades or permits needed to finish a repair? Up to how much?
• How do you handle items that are obsolete and no longer have replacement parts?
• Can I use my own licensed contractor?

When to repair instead of insure

If a system is clearly at the end of its life, such as a 25-year-old furnace, replacing it on your own schedule may be smarter than waiting for a warranty claim that could be denied or capped. Many owners of older homes do both: replace the oldest system now and put a warranty on the rest.