Home Warranty Explained: Knowing Exactly What Is And Isn’t Covered

A home warranty is a policy that covers the repair or replacement of many of the components in your home. It can be a great way to protect yourself from unexpected repair costs. However, it’s important to understand what is and isn’t covered by a home warranty policy. This blog post will explain the coverage of a typical home warranty policy. It will also discuss some of the limitations of these policies so that you can make an informed decision about whether or not a home warranty is right for you.

New build homes in the UK – Shutterstock

What is covered in a home warranty?

A new home comes with a builder’s warranty. A builders’ warranty typically covers major structural defects, such as cracks or sagging foundations. This is usually for the first two years after your house was constructed and can be extended to up to ten years depending on the type of construction used in building your home. However, this doesn’t cover appliances or other systems in your home.

That’s where a home warranty policy comes in. A typical home warranty policy will cover most of the components in your house, including appliances, plumbing, and electrical systems. It may also include coverage for structural damage, such as water leaks or roofing issues. When purchasing a home warranty, you have to make sure that you read carefully through the policy so that you know exactly what is covered under your plan. This way, you will avoid any unwanted surprises when it comes time to file a claim.

What isn’t covered in a home warranty?

Although many homeowners see the benefit of having a plan that covers most systems and appliances, there are some exceptions to what is not covered by these policies. In general, most plans don’t cover damage caused by mold or pets. They also don’t cover normal wear and tear on items, such as a television that breaks down after five years of use.

Other exceptions include structural damage to the house, such as cracks in the foundation or walls. This is typically covered under your homeowner’s insurance policy instead of your home warranty plan. Your home warranty may also fail to cover damage from natural disasters, such as a tornado or hurricane. Like structural damage, damage from natural disasters is also typically covered by your homeowner’s insurance policy.

How much does a home warranty cost?

The cost of a home warranty policy varies depending on the size and age of your home, as well as the coverage that you choose. Generally, policies range from about £300 to £600 per year. However, it’s important to shop around for the best deal, as prices can vary significantly from one company to the next.

Home under construction on a building site UK – Shutterstock

A home warranty can be a great way to protect yourself from unexpected repair costs. However, it’s important to know what is and isn’t covered under these policies before you sign up for one of them. If you’re not sure whether or not a home warranty is right for you, talk to your insurance agent. They can help you weigh the pros and cons of getting this type of policy.

Author: Laura

A 70's child, I’ve been married for a Very Long Time, and appear to have made four children, and collected one large and useless dog along the way. I work, I have four children, I have a dog… ergo, I do not do dusting or ironing. I began LittleStuff back in (gulp) 2004. I like huge mugs of tea. And Coffee. And Cake. And a steaming cone of crispy fresh fluffy chips, smothered in salt and vinegar. #healthyeater When I grow up I am going to be quietly graceful, organised and wear lipstick every day. In the meantime I *may* have a slight butterfly-brain issue.

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