What a home warranty covers

It’s always a good idea for homeowners to thoroughly review their warranty to note the coverage on their plan. Most homeowner warranty plans cover systems in the house no matter the age, as well as appliances and systems regardless of their make or manufacturer.  Some things not listed on the warranty may not be covered—so as a precaution, here are a few things to note about home warranties:

• If a system or appliance covered in your home warranty plan fails, the usual procedure is to call the number listed in your plan. Contractors employed by the plan will usually respond within a few hours to schedule an appointment. Every effort is made to make sure your house is habitable. You will be charged a service fee for every call, but repairs and/or replacement of appliances or systems should be covered by your home warranty plan. 
  
  
• Your plan does not cover appliances or systems that fail because they have been improperly used or have not been correctly maintained. Appliances or systems not listed on your warranty are the responsibility of the homeowner to be repaired or replaced. Remember that your home warranty is in effect for a year from the initiation date, and there may be an option for renewal. 
  
  
• Sometimes the seller of the home will offer to purchase a one-year home warranty for the buyer. This buys peace of mind for the buyer and often is an incentive to purchase. It also assures the seller that he/she will not be on the hook for the failure of an existing system or appliance included in the deal. 
  
  
• Home warranty is not the same thing as homeowner’s insurance. The latter covers fire, hail, water damage and other stated conditions that could affect the structure of your new home. Home warranty covers systems or appliances, not structural damage to the building.