What's Covered and What's Not
A home warranty is not a replacement for your homeowner's insurance, but it can provide additional protection against unexpected repairs or maintenance costs. Ask about what's covered, including:
- Major appliances and systems (e.g., water heater, AC, furnace)
- Cooking appliances
- Plumbing issues
- Electrical system
- Roof damage or leaks
Who's Behind the Company and What's Their Reputation
Certain home warranty companies have been known to issue fake policies or deny claims altogether. Research the company's reputation online, including:
- Awards from reputable organizations (e.g., Better Business Bureau)
- Reviews and testimonials from previous customers
- Compliance with industry regulations (e.g., NFCC 117)
How Long Will the Coverage Last?
The length of coverage varies depending on the warranty, but most standard plans last for at least two years. Ask about:
- The length of coverage (e.g., 30 days to 5 years)
- What happens after the initial coverage period ends
- Can you cancel or transfer the warranty at any time?
Exclusions and Limitations
A home warranty may have exclusions for items that are not covered, such as:
- Items that have been repaired or replaced already (e.g., a new air conditioner)
- Damage caused by wear and tear or normal use (e.g., a leaky faucet)