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What Does a Home Warranty Cover?

Published: April 18, 2012 in

One of the problems with older homes is that they come with old stuff. And old stuff tends to break down. Let’s say you’re in the market for an older home. Inspections don’t turn up any problems, all appliances and systems are in proper working order. But they’re old. Are there any guarantees against something breaking down and you having to pay the bill? There is and it’s called a buyers home warranty.

A home warranty is a one-year residential service contract that provides repair or replacement coverage for the major operating systems and appliances in a home that fail due to normal usage. While a home warranty cannot prevent systems and appliances from failing, it can save you money on costly covered repairs and replacements. Some of the items that are covered in a standard home warranty are:

But doesn’t my homeowners insurance cover these things?  Some homeowners policies may, but most only cover damage from events such as fires, hurricane, tornados, hail, lightning or theft. It should also be noted that some home warranty companies require an inspection prior to issuing a policy, but most don’t. A standard home warranty may charge a one time premium of $300-$400 for a home with up to 5000 square feet. Additionally, the home warranty company will charge $50-$100 per visit by a technician.