What Home Warranties Don't Cover (Read This Before You Sign)

Common exclusions

• Pre-existing conditions: problems that existed before coverage began
• Lack of maintenance: for example, a furnace that was never serviced
• Improper installation or earlier amateur repairs
• Code upgrades and permits needed to complete a repair (unless your plan adds them)
• Access costs, such as cutting into drywall or concrete to reach a pipe
• Secondary damage, like water damage from a leaking water heater (that's an insurance issue)
• Cosmetic issues, like dents and scratches
• Roofs, foundations, windows, and structural components on most standard plans

Watch the coverage caps

Nearly every plan limits what it pays: per item, per claim, or per year. HVAC caps commonly range from about $2,000 to $6,500 per system, which may not cover a full system replacement and leaves you to pay the rest. Compare caps for your most expensive systems before you compare prices.

Add-ons that close the gaps

Many providers sell optional coverage for pools and spas, well pumps, septic systems, sewer lines, roof leaks, and code upgrades. If any of these apply to your home, price them in from the start. They're often cheaper as part of the original plan than added later.

How to avoid a denied claim

• Keep receipts for HVAC tune-ups, filter changes, and other routine service.
• Take dated photos of major systems when coverage starts.
• Report breakdowns right away. Waiting can turn a covered failure into an excluded one.
• If a claim is denied, ask for the reason in writing and the exact contract clause.
• Escalate politely, and file a complaint with your state regulator if needed.