Top 10 Home Warranty Questions for Home Buyers and Sellers

Home warranty coverage can be a smart way to manage your household budget and gain valuable peace of mind. Yet it’s common for buyers and sellers to have many home warranty questions as they navigate a home purchase or sale.

Below you’ll find answers to some of the top questions buyers and sellers have about home warranties. Armed with this information, you’ll gain a clearer understanding of how home warranties work and what to expect.

1. What Is a Home Warranty?

A home warranty is typically a one-year renewable service contract that covers many essential home appliances and systems you use every day, such as dishwashers, ovens, cooktops, HVAC, plumbing, electrical, and much more. When these unexpectedly break from wear and tear, home warranty coverage steps in to protect your budget from costly repairs and replacements.  

Comprehensive home warranty coverage for buyers provides a convenient solution when covered items suddenly stop working properly. You contact us to request service, and we’ll assign a prescreened technician from our network, saving you valuable time and stress when something breaks.

2. How Is a Home Warranty Different from Homeowners Insurance?

It’s easy to confuse a home warranty with homeowners insurance, and that misunderstanding can be costly when appliances or major systems fail. Your homeowners insurance won’t cover your air conditioning, water heater, or refrigerator when they break. This is where a home warranty helps.

Homeowners insurance protects your budget from losses caused by theft, fire, storms, floods, and other natural disasters. It’s for sudden, accidental damage to your home and property. A home warranty, on the other hand, protects the appliances and systems you use routinely to keep your household running smoothly. Because home warranties and homeowners insurance cover different things, homeowners often purchase both to get comprehensive home protection.

3. What Exactly Does a Home Warranty Cover?

First American home warranty plans for home buyers and sellers cover essential household appliances and systems. You can also add extra coverage upgrades and options to suit your home’s distinct features, such as pool/spa coverage, coverage for high-end appliances, and more.

Plans and options vary by region, so be sure to review home warranty coverage for home buyers and sellers to see coverage in your area.

4. How Does the Repair or Replacement Process Work?

When a covered appliance or system breaks, simply submit a service request by phone or using your First American online account, and pay the service fee listed in your contract.

We’ll assign a prescreened technician from our network to contact you and schedule an appointment. At the appointment, the technician will diagnose the issue, confirm coverage, and repair or replace the item as quickly as possible. If your broken appliance or system cannot be repaired, we’ll replace it.*

Learn more about the repair and replacement process.

5. Are There Other Costs Besides the Service Fee When a Covered Item Breaks?

Sometimes. In many instances, you’ll only pay your service fee. For example, appliance repairs or replacements, plumbing stoppages, and heater or AC repairs are typically straightforward.

Occasionally, structural changes are needed to accommodate brand new equipment, like modifying pipes or electrical, or expanding the space. These changes are typically not covered by a home warranty, and so you may pay out-of-pocket for these types of costs.

6. How Quickly Are Claims Serviced?

The technician typically receives the claim dispatch within four hours, during regular business hours. Normally, the technician will contact you to set up an appointment within 48 hours. Simple repairs are usually made during the first visit. If parts must be ordered, however, additional visits may be needed to complete the repair.

7. Does a Home Warranty Cover Emergency Repairs?

First American considers it an emergency when the failure of a covered item makes the home uninhabitable. Examples include situations where there is no power, water, or functioning toilets. In these circumstances, we’ll make all reasonable efforts to expedite and initiate emergency service within 24 hours.

8. What Determines Whether a Broken Item Is Eligible for Coverage?

Generally, when covered appliances and systems break from regular everyday use (normal wear and tear), they’ll be covered. A home warranty doesn’t cover cosmetic defects, misuse, or items covered by a manufacturer’s warranty.

9. Does a Home Warranty Cover Pre-Existing Conditions?

A home warranty typically won’t cover items that were broken before coverage started.

However, a home buyers warranty will cover unknown pre-existing conditions. This means that if something was broken when your coverage started but you didn’t know about it and couldn’t tell by using or looking at the appliance or system, it’s covered.

10. Why Should I Get a Home Warranty?

Home warranties are a smart way to manage expenses when home appliances and systems break unexpectedly. Coverage can save homeowners time, stress, and significant repair or replacement costs. First American home warranty plans offer a convenient way to manage repairs and replacements while providing easy access to qualified technicians.

All First American home warranty plans also come with extra member benefits designed to make homeowership easier. Benefits begin on Day 1 of coverage, and include discounts on brand-name appliances, refrigerator and HVAC filters, home services, and more.

Have other home warranty questions? Explore our comprehensive FAQ page for additional answers to questions about submitting claims, coverage details, and more.

*Please review the sample contract for specific coverage, terms, and limitations.