What's Not Covered By a Home Warranty

Understanding what your home warranty doesn't cover is just as important as knowing what's protected. There are specific home warranty limitations and exclusions that help you set realistic expectations about many common breakdowns.

Home warranty plans provide peace of mind by covering the repair or replacement of many home systems and appliances, but not all items or issues are covered. So, what does a home warranty not cover? Here’s a list of the most common home warranty limitations:

• Cosmetic damage
• Damage from pests
• Misuse
• Types of damage covered by your homeowners insurance, including secondary damages
• Items covered by a manufacturer’s warranty
• Changes or modifications to your home’s structure that are needed to repair or replace covered systems and appliances or to install new equipment
• Known or visible pre-existing conditions*
• Acts of nature

What’s Not Covered by a Home Warranty for Appliances?

The appliances covered by a home warranty can vary depending on the home warranty plan you have. So, do home warranties cover old appliances? Yes! If they are in safe, working order when coverage starts, the age of the appliance will not matter for coverage.

However, there are plan limitations for warranties when it comes to appliances. Here are a few examples of what a home warranty coverage exclusion for appliances looks like:

• Cosmetic damage: Most home warranty plans won’t cover cosmetic defects or damage, including scratches, dents, or chipped paint on your appliances.
• Appliances under manufacturer’s warranty: Home warranty plans don’t cover appliances that are still under the manufacturer’s warranty. However, the appliance is covered by the manufacturer, rather than your home warranty.
• Pre-existing conditions: If an appliance you own had a known issue or malfunction before the home warranty plan started, it might not be covered. Review the terms of your home warranty regarding pre-existing conditions to understand the details of your home warranty coverage limits.

It’s important to review the terms and conditions of your home warranty contract to better understand First American appliance coverage and all home warranty limitations.

What Do Home Warranties Not Cover for Systems?

Home warranties vary depending on your plan and location, but there are some standard exclusions and limitations when it comes to home systems. What does a home warranty not cover when it comes to common home systems like plumbing, HVAC, and electrical? Do home warranties cover pre-existing conditions on home systems? Some examples of items not covered include:

• Acts of nature: Home warranties typically don’t cover damage caused by natural disasters like floods, earthquakes, hurricanes, or other acts of nature.
• Pest damage: Damage from termites, rodents, or other pests is usually not covered by home warranty plans. Some plans for home buyers offer coverage for removing pests, but not for repairing existing damage.
• Solar electric systems: Home warranties don’t usually cover solar energy systems.
• Propane systems: These systems are generally not covered under home warranty plans.
• Pre-existing conditions: Home warranties typically do not cover issues or problems with your home's systems that existed before your coverage started and could’ve been detected through a visual inspection.

Warranties for home buyers and sellers do have an exception for “unknown defects.” This means that if you couldn’t tell if something was broken by looking at or using it when the warranty started, it may be covered.

First American home warranty plans typically cover a wide range of home systems. Does a home warranty cover plumbing leaks? In most cases, yes! Does a home warranty cover a water heater? Yes, most home warranty plans can cover water heaters.

Additional home warranty coverage for home systems can include heating, ductwork, central air conditioning, garage door openers, attic, ceiling, and exhaust fans, central vacuum systems, and electrical systems. Coverage for plumbing can include your plumbing system, plumbing stoppages, toilet tanks and bowls, garbage disposals, water heaters, circulating pumps, sump pumps, and pressure regulators.

What is Sometimes Covered by a Home Warranty?

First American Home Warranty offers optional upgrades and comprehensive plans that not only personalize the coverage but also help extend protection beyond basic coverage. Here are items that aren't included in standard plans but can be added to your coverage when you decide you need them.

• High-end appliances: Some plans have increased limits that allow you to cover luxury appliances.
• Improper installations and code violations: This can be covered in some plans and as optional coverage in all real estate plans.
• Septic systems, water softeners, and well pumps: Offered as options.
• Solar heating and cooling systems: Included in some plans, with limits.
• Ice makers and wine fridges: Can be covered under optional additional refrigeration coverage.
• Window AC units: Included in some plans.

Home buyers can also add optional coverage for:

• Outdoor kitchens: Plans for home buyers can cover components of outdoor kitchens that are essential to their function, including appliances such as dishwashers and refrigerators, as well as plumbing and electrical systems.
• Additional plumbing coverage: Plans for home buyers offer an optional upgrade to extend coverage to pipes encased in concrete, external pipe leaks, and more.

Learning about the additional coverage options available can help you create a home warranty contract that meets the needs of you and your unique house.

Home Warranty Coverage Exclusions

Home warranties cover the repair or replacement of specific covered items or components when they break due to normal wear and tear. However, there are important boundaries to this coverage that help you understand what to expect when a covered system needs attention. Let's break down two key areas that often cause confusion.

Structural Modifications and Equipment Changes

When we replace a covered system or appliance, we replace it with modern equipment that meets current efficiency standards. Sometimes this creates a challenge when newer equipment is sized or shaped differently from older models.

For example, modern water heaters are better insulated than older models, which results in taller and wider units. While your plan covers the replacement of the water heater itself, any structural changes required to accommodate the new unit, such as modifying pipes, expanding the space, or adding new equipment, are not covered.

The same applies to heating and cooling systems. A new energy-efficient furnace or air conditioner might need more electrical capacity or be a different size than your old unit. Your plan covers the replacement system and modifications needed for compatibility, but structural alterations or re-wiring fall outside home warranty coverage.

Secondary Damage

When a covered system or appliance breaks, this is considered "primary damage." Your home warranty covers the repair or replacement of that item. However, home warranties don’t cover any resulting damage or problems caused by the breakdown; that’s what homeowners insurance is for.

Here's how it works in practice:

Covered (Primary Damage): Your dishwasher motor fails, and water leaks from the unit. Your First American Home Warranty plan covers the diagnosis, repair, or replacement of the covered dishwasher.

Not Covered (Secondary Damage): That leaked water damages your kitchen floor, baseboards, or cabinets. This secondary damage falls under your homeowners insurance, not your home warranty.

This distinction exists because home warranties and homeowners insurance serve different purposes. Your home warranty protects the mechanical systems and appliances themselves when they break due to normal wear and tear. Your homeowners insurance protects your home's structure and contents from damage, including water damage from appliance failures.

Understanding What Your Home Warranty Covers

Understanding what home warranties don't cover gives you realistic expectations and helps you make smart decisions about optional upgrades tailored to your specific home needs. If you have a First American home warranty, you can sign in to your online account to review your contract for coverage and limitations.

If you’re not yet covered by a home warranty, get a free quote now.

FAQs About What’s Not Covered by a Home Warranty

Do home warranties cover home repairs or renovations?

No. Home warranty plans are designed to cover the repair or replacement of specific home systems and appliances due to normal wear and tear. Still, they’re not intended to cover home repairs and renovations for cosmetic improvements or upgrading existing systems and structures that are currently functional.

What types of damage are not covered by a home warranty?

Home warranty plans don’t cover damage caused by misuse, pests, cosmetic issues, or acts of nature. They also exclude repairs for items still under a manufacturer’s warranty or any damage typically covered by homeowners insurance.

Does a home warranty cover pre-existing conditions?

In most cases, no. Home warranties usually don’t cover known or visible pre-existing conditions that existed before coverage began. However, home warranty plans for home buyers include limited protection for unknown pre-existing issues that couldn’t have been detected through a visual inspection.

Are appliances with cosmetic damage or manufacturer warranties covered?

No. Most home warranty plans don’t cover cosmetic defects—such as scratches, dents, or paint chips—or appliances that remain under a manufacturer’s warranty, since those are already protected by the manufacturer.

Do home warranties cover system damage from natural disasters or pests?

Generally, no. Home warranty plans exclude damage from floods, earthquakes, or other natural disasters, as well as problems caused by termites, rodents, or other pests. These types of damage are typically covered under homeowners insurance instead.

Does a home warranty cover water damage?

No. Home warranties cover the repair or replacement of the appliance or system that caused the issue (primary damage) but not any resulting water damage to your home (secondary damage). Water damage falls under homeowners insurance coverage.

Can I add coverage for items that aren’t included in my plan?

Yes, optional coverage is available for items, such as pools, water softeners, well pumps, septic systems, and more. Adding these can help customize your plan to fit your home’s needs.

*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.