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Home warranty

Education

A service contract on what wears out.

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Introductions to a participating provider open when one is signed — what's live today.

A home warranty is not insurance. It covers systems and appliances breaking down from normal use — with caps, exclusions and usually a fee for each visit. Learn the contract before anyone sells you one.

How a plan works

  1. You hold a contract for a set period. It lists what it covers.

  2. A covered item fails from normal wear. You open a claim and pay the service fee your contract sets.

  3. Their contractor diagnoses it. The company repairs, replaces or denies — within the contract's limits.

Roughly: insurance answers damage to the house; a warranty answers wear on what is inside. Each contract draws its own line.

Two different contracts

A warranty is not insurance

You can hold both. They answer different failures, and where one stops the other rarely picks up.

A home warranty

Service contract. Breakdown from age and normal use.

  • Heating, cooling, water heater
  • Plumbing and electrical lines
  • Oven, dishwasher, washer, dryer

Optional. A seller or agent may include one; renewal is your call.

Homeowners insurance

Insurance policy. Sudden accidental loss from a covered peril.

  • Fire, wind, hail, theft
  • Liability if someone is hurt
  • Somewhere to live after a covered loss

Lenders generally require it while a mortgage is on the property.

What plans do

Covered, and not

Common shapes, not your contract. The one in your hand is the only authority on what it covers.

Usually covered

  • Heating and cooling, ductwork on many plans
  • Water heater, plumbing lines, stoppages
  • Electrical panel and wiring
  • Oven, range, dishwasher, built-in microwave
  • Washer, dryer, garage-door opener
  • Often sold separately: pool and spa, well pump, septic

Usually not

  • Faults that were already there when you signed
  • Poor installation, misuse, skipped maintenance
  • Anything a manufacturer's warranty already covers
  • Cosmetic damage, and equipment that still works
  • Permits, code upgrades and modifications a swap needs
  • Anything above a cap the contract sets — the plan stops, the bill does not
Why, and why not

Whether one is worth it

A warranty trades part of an unpredictable repair bill for a predictable fee — the part your contract covers, up to its cap. Whether that is a good trade depends on the house.

Why homeowners buy one

  • The systems are old and you would rather know the worst case
  • No plumber, no electrician, no HVAC contractor — this is one number
  • You just bought the house and do not know what it will do
  • A seller included one at closing and you are deciding whether to renew
  • A rental or second home, where you cannot meet the technician

When it may not pay off

  • Everything is new and still under a manufacturer's warranty
  • You have a contractor you trust and want to choose your own
  • The cap sits well below what your equipment would cost to replace
  • You keep a repair fund — the same bet, without the exclusions
The contract

Read before you sign

  • The exclusions. Read them before the covered list — they are what the covered list means in practice.
  • The caps. Look for a limit per item and per year, against what replacement would cost you.
  • The fees. What the plan costs, what a visit costs, and whether a second visit is a second fee.
  • Maintenance proof. Some plans require records. No records can mean no claim.
  • Who picks the contractor. Most contracts route you through their own network. Read what yours says about using your own, and about delays.
  • Replacement standard. Contracts usually promise comparable, not identical — and say who pays for a code upgrade a swap triggers.
  • Cancellation and renewal. How you get out, what is refunded, and how the price may change.
  • Where complaints go. Oversight differs by state — often the insurance department, not always. Find out who handles it where you live.

Who decides

The warranty company named in the contract — never DuckWater.

A home warranty is a service contract, not insurance. Coverage, caps, exclusions and regulation vary by provider and by state.