What Do Home Warranties Cover?

If you’re wondering “What types of things do home warranties cover?” you’ve come to the right place. These plans cover many common home problems, from plumbing issues to appliance failures. You’ll find that some home warranties cover a wide range of situations and can save you a lot of money and hassle. Learn about the exclusions and limitations of each plan. Also learn what your liability is.

Limitations

When you first purchase a new home, you probably don’t realize the limitations of your home warranty. When it comes time for a repair, you may be shocked to find out that they are severely limited. Many new homeowners, and even current homeowners, mistakenly believe that a 10 or 30-year warranty will provide adequate coverage. As it turns out, you’re best off with a one-year or a two-year warranty, depending on your needs.

Exclusions

Exclusions from home warranties vary in the coverage provided by a given home warranty company. Exclusions may be as small as a service call fee, or they could be as large as covering the entire system or appliance. The fact is that home warranties cannot cover every repair, and this is why premiums are so low. But if you have a broken sink pop-up mechanism, you might be out of luck.

Most home warranties have limitations and exclusions for certain systems and appliances. For instance, a plumbing system may only cover blockages up to four inches into the wall. Also, make sure to read the exclusions in the contract. Most home warranties only cover items that fail under normal wear and tear, and don’t cover items that are pre-existing or caused by abuse or neglect. It’s important to read the small print to avoid any misunderstandings down the line.

Cost

Home warranties cost between $250 and $500 per year, and some companies offer monthly payment options. Many plans offer extra services like home inspections for an additional fee, while others offer basic coverage for just a few components. While home warranties are not insurance policies, they do cover repairs and replacement of various parts of the home. The cost of a home warranty depends on the company and plan features, as well as the cost of living in your area.

The age of your home can also determine the price of a home warranty in Wisconsin. The older your home, the more likely it is to require repairs and replacements. The larger the home, the higher the monthly premium. This is because larger homes have more appliances and systems than smaller ones. Some plans cover a variety of other issues, including roof leaks, air conditioning, and garage door openers. If you’re unsure of whether or not a home warranty is right for you, ask around for a quote.

Liability

There are several different types of home warranties available for homeowners. Some are annual and some are monthly. New home warranties typically have limits on the amount of coverage they provide. Depending on the coverage you purchase, you could be covered for up to ten thousand dollars per year on appliances, paint and drywall, and HVAC and plumbing systems. These warranties can be extremely beneficial in reducing repair costs and can even provide up to $10,000 in liability coverage.

Some home warranty plans cover specific appliances, while others offer a total fee for all appliances. A hefty sum for a refrigerator may make a home warranty worthless if it can’t handle the damage, but some plans will only cover common appliances. Other home warranties cover liability and will not pay out for items identified as faulty by a home inspector. However, these types of plans can help you avoid hefty repair bills when they are most needed.

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