Home Warranty for Water Heaters: What's Covered and How It Works

If you’ve ever dealt with a leaking water heater or sudden loss of hot water, you know how disruptive it can be. Plus, repairs and replacements can be expensive, leading many homeowners to ask, “Does a home warranty cover water heaters?” In this guide, we’ll explain how a water heater home warranty can help when yours unexpectedly malfunctions, what to look for in a home warranty plan, and why water heater coverage can be a valuable financial safeguard.

Why Consider a Home Warranty for Your Water Heater?

A water heater is one of the most essential systems in your home, providing hot water for cooking, laundry, cleaning, and more. However, like all appliances, water heaters eventually wear out over time, often when you least expect them to. Although regular water heater maintenance might extend the lifespan of your unit, conventional tank water heaters typically last between 8 to 12 years on average, while tankless models can last 15 to 20 years. Unfortunately, when they fail, it often comes without warning. A leaking tank or faulty heating element can leave you scrambling for solutions.

Without a home warranty, you could face hundreds of dollars in water heater repair costs. In some cases, replacing your water heater may be the only option, which can be even more expensive. By investing in a water heater home warranty, you can help safeguard your budget when covered breakdowns occur, providing financial peace of mind.

What Does a Water Heater Warranty Typically Cover?

While coverage varies by home warranty company, water heater home warranty coverage from First American Home Warranty includes:

• A convenient way to request service 24/7. When your water heater breaks from normal wear and tear, contact us through your online homeowner portal or via phone.
• Budget protection. You pay your service fee when you request service, and we handle covered repairs and replacements.*
• A network of independent service providers. There’s no scrambling for a plumber at the last minute. We’ll assign a prescreened technician from our network to come to your home, diagnose the issue, confirm your coverage, and repair the covered item. If it can’t be repaired, we’ll replace it.**
• Comprehensive coverage. Coverage includes gas, electric, tank, and tankless water heaters.
• Peace of mind. You can rest easy knowing you have a financial plan in place when your water heater fails.
• Generous coverage limits: $1,000 limit for Essential plan and no limit for Premium plan.

Keep in mind that not all costs for replacing a water heater may be covered. For example, modifications or alterations to structures aren’t covered. Home warranties also typically don’t cover preexisting issues, meaning problems with your water heater that existed before your coverage started.†

Learn more about what a water heater home warranty doesn’t cover.

Choosing the Best Home Warranty for a Water Heater

Because water heater home warranties can vary significantly, it pays to shop around. When evaluating the best home warranty for water heater protection, consider:

• Type of water heater covered. Confirm that your tank, tankless, gas, or electric model is covered. Our Essential and Premium plans for homeowners both cover water heaters.
• Service fee. What is the fee each time you request service? Some plans let you choose the service fee you’ll pay.
• Coverage details. Does the home warranty plan cover both repairs and replacements? Are there caps, or coverage limits, to how much it will pay? A home warranty water heater replacement could potentially save you thousands of dollars, so it’s important to read your home warranty contract carefully.

Selecting a home warranty for water heaters that balances comprehensive protection with affordable costs ensures that you’ll get the most value when dealing with unexpected home repairs.

Protect Your Budget with a Water Heater Home Warranty

Water heaters are essential, and they’re also prone to breakdowns as they age. Without home warranty protection, the cost to repair or replace a water heater could become a big financial burden. And other appliances and home systems can also be expensive to repair or replace, such as dishwashers, ovens, cooktops, washers and dryers, HVAC, plumbing, and electrical systems, and others.

Fortunately, your First American home warranty plan can cover these household items as well, providing comprehensive protection you can rely on to help keep your home running smoothly.

Ready to safeguard your budget against water heater issues and other costly covered breakdowns? Learn more about our comprehensive home warranty coverage and get a free quote for your home.

Water Heater Home Warranty FAQs

Does a home warranty cover water heater repair and replacement?

Coverage depends on the home warranty company and the plan itself. Most First American home warranty plans include water heater coverage. See what’s covered in our homeowner plans.

Does a home warranty cover tankless water heaters?

Our home warranty coverage for water heaters includes tank and tankless water heaters, whether gas or electric, providing protection across the most common types.

Does a home warranty cover water heater leaks?

Yes, First American home warranties cover water heater leaks caused by normal wear and use. Depending on the issue, coverage may include repairing the leak or replacing the water heater if it can’t be repaired. Coverage is subject to the terms and limitations of your plan.

How long does a home warranty for a water heater last?

Most First American home warranty plans last one year from the time of purchase. Many homeowners renew their plan annually to continue their coverage and the budget protection it offers.

*Be aware of non-covered costs even with your home warranty coverage. Please review your sample contract for specific coverage, terms and limitations.

**In some instances, Homeowner and First American may agree to payment of cash in lieu of repair or replacement. Payment will be made based on First American’s negotiated rates.

†Some plans that are purchased as part of a real estate transaction will protect you from unknown pre-existing conditions, if at the time the coverage begins, the defect is not known or could not have been reasonably observed by looking at or operating the system or appliance.