What Does a Home Warranty Cover?

A home warranty is a renewable service contract that covers many of the home appliances and systems you use the most. But what does a home warranty cover exactly? Coverage typically includes:

• HVAC systems — heating, air conditioning, and ductwork
• Plumbing — pipes, water heaters, garbage disposals, and fixtures
• Electrical — wiring, outlets, circuit breakers, panels, and sub panels
• Major appliances — refrigerators, ovens, washers, dryers, and dishwashers

Below, we’ll explain how home warranty coverage works, what’s included (and what’s not), and how the right plan can help protect your budget from unexpected repair costs.

How Does a Home Warranty Work?

When a covered appliance or system breaks from normal wear and tear, you contact your home warranty provider to request service. The provider then sends a prescreened service provider to diagnose the issue, confirm coverage, and complete the repair. If the item can't be repaired, we replace it with features, efficiency, and capacity that are similar to your existing item.

Coverage typically includes major appliances like refrigerators, ovens, and washing machines, as well as home systems such as electrical, plumbing, heating, ventilation, and air conditioning (HVAC). Depending on the plan, provider, and level of protection you choose, home warranty coverage can vary.

Next, we’ll explore the specific appliances and systems a home warranty covers — and what’s typically not included.

What Do Home Warranties Cover?

Home warranties cover the repair or replacement of major appliances and essential home systems when they break down over time. Since every appliance and system in your home has a limited lifespan, using your home warranty isn’t a matter of if, but when.

Major Appliances

Does a home warranty cover appliances? Yes, home warranties typically cover major appliances with countless working parts that can be costly to repair or replace. For instance, home warranties can cover laundry and kitchen appliances that require specialized knowledge and tools to fix, and that your budget might not be ready for when they unexpectedly break.

Smaller countertop appliances, such as toasters, blenders, and coffee makers, are not covered.

Which Appliances Are Covered by First American Home Warranty?

Here's a list of appliances that can be included in First American Home Warranty coverage:

• Refrigerator
• Dishwasher
• Oven/range/cooktop
• Washing machine
• Clothes dryer
• Built-in microwave
• Kitchen range hood and vent
• Trash compactor

Home Systems

For many homeowners, coverage for home systems is one of the most important reasons to purchase a home warranty. HVAC systems, electrical systems, and plumbing can often cost thousands to repair or replace without home warranty protection.

Does a home warranty cover an AC unit? Yes. Does a home warranty cover a water heater? Also yes. These essential systems are typically included in home warranty coverage, giving you budget protection when you need it most.

Which Home Systems Are Covered by First American Home Warranty?

Here's a list of the systems that can be included in First American Home Warranty coverage:

• HVAC
• Heating
• Air conditioning
• Ductwork
• Mini-split ductless systems
• Heat pump
• Electrical
• Garage door opener
• Fans (exhaust, ceiling, attic)
• Doorbells
• Garage door hinges, springs, and transmitters
• Central vacuum system

We also offer optional HVAC tune-up coverage to keep your system working its best all year.

Plumbing

Plumbing problems in your home can be costly and frustrating, and some can cause leaks or flooding if not fixed in a timely manner. If an issue leads to water damage that can also be expensive to repair.

Keep in mind that plumbing coverage may differ from what you expect.  While you might assume plumbing includes anything that uses water, a home warranty covers the plumbing system itself and issues such as leaky pipes, rather than water damage that results from a breakdown (that’s where homeowners insurance comes in).

Which Plumbing Services Are Covered by First American Home Warranty?

Here's a list of the plumbing-related services that can be included in First American home warranty coverage:

• Plumbing system
• Plumbing stoppages
• Water heater
• Circulating pumps
• Toilet tanks, bowls, and mechanisms
• Garbage disposals
• Instant hot water dispensers
• Sump pumps
• Permanently installed sump pumps
• Shower heads and arms
• Pressure regulators
• Hose bibbs
• Ground-level cleanout installation

Home warranties can also cover other unique items your home may have with add-on coverage. You can customize your plan to include coverage for a pool or spa, extra refrigeration, septic system, well pump, and more.

What Is Not Covered by a Home Warranty?

Just like homeowners insurance doesn’t cover every type of damage, home warranties don’t cover every kind of home system or appliance failure. For example, a home warranty won’t cover appliances or home systems that aren’t working properly at the start of coverage.

However, if you're buying or selling a home, real estate plans can cover unknown pre-existing conditions — problems you couldn't reasonably see or detect before your coverage began.*

A home warranty also won’t cover misuse, like children’s toys flushed down the toilet or your garbage disposal clogged by non-food items. Covered items also must be installed in the home, so you don’t want to disconnect your dishwasher and try to fix it before you call us.

Here are some typical home warranty exclusions:

• Cosmetic damage
• Acts of nature
• Misuse or neglect
• Lack of capacity
• Missing parts
• Damage caused by pests

For a complete breakdown of exclusions, see our guide: What's Not Covered by a Home Warranty.

Consider a First American Home Warranty

Home warranties cover essential parts of your home's systems and appliances, from a furnace that stops heating to a refrigerator that won't stay cold. Add-on coverage is also available to customize your plan for items like pool and spa equipment, septic systems, or roof leak repair.

With First American, you get benefits you won't find everywhere. Our plans have no total dollar limit on most covered repairs, so you can request service as often as needed without worrying about hitting a cap. Be sure to review your contract, as some individual items have a cap. Many of our customers request service multiple times each year and can save hundreds to thousands of dollars on repair and replacement costs. Plus, your coverage includes Member benefits that start on Day 1 — such as appliance, handyman, and filter-delivery discounts, re-key service, and more.

A home warranty helps simplify homeownership by protecting your budget and connecting you with prescreened service providers.

Get a free quote today to find the right plan for your home.

FAQs About Home Warranty Coverage

What is the biggest benefit of a home warranty?

The biggest benefit of a home warranty is likely the peace of mind it can bring you as a homeowner. A home warranty provides financial protection by helping cover the repair or replacement costs of many essential home systems and appliances when they break down due to normal wear and tear.

What’s the difference between home warranty coverage and homeowners insurance?

While home warranties and homeowners insurance are both designed to protect you, they serve different purposes. Home warranties cover repairs or replacements of covered home systems and appliances, while homeowners insurance covers damage to your home and belongings from unforeseen events like natural disasters, theft, fire, or vandalism.

How much does a First American home warranty plan cost?

Home warranty coverage costs about $2 a day. And that investment can pay for itself quickly: a single covered repair, like a water heater replacement or AC compressor fix, can cost hundreds to thousands of dollars out of pocket. View current pricing and plans to find the right coverage for your home.

Does a home warranty cover pre-existing conditions?

Home warranties typically don't cover problems that existed before your coverage started — if you knew about them. However, First American home warranty plans purchased as part of a real estate transaction can cover unknown pre-existing conditions.* This means if a defect wasn't visible or couldn't have been reasonably detected when your coverage began, you may still be protected.

Are there limits on how much a home warranty will pay?

Coverage limits vary by provider. First American home warranty plans have no total dollar limit on most covered items, and you can request service as often as needed.

What is not covered by a home warranty?

Home warranties don't cover everything. Common exclusions include cosmetic damage, misuse or neglect, acts of nature, items not in working order when coverage begins, non-covered costs, and secondary damage (like water damage from a broken appliance). Smaller countertop appliances — toasters, blenders, coffee makers — also aren't covered.

 

*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.