While home warranties provide valuable protection for many home systems and appliances, it's crucial to understand what's typically not covered. Being aware of these exclusions helps you plan better and avoid surprises when filing claims.
Common Exclusions in Home Warranty Plans
Typically Not Covered:
- Pre-existing conditions
- Cosmetic defects
- Structural components
- Known or visible rust/corrosion
- Commercial-grade equipment
- Items under manufacturer's warranty
- Damage from natural disasters
Understanding Coverage Limitations
Even for covered items, there may be limitations:
- Coverage Caps: Maximum payout limits per item/year
- Maintenance Requirements: Proof of proper maintenance
- Installation Standards: Must meet building codes
- Usage Type: Residential use only
How to Handle Excluded Items
Protection Strategies:
- Consider additional insurance coverage
- Maintain an emergency repair fund
- Regular maintenance schedule
- Document all repairs and maintenance
- Research add-on coverage options
Understanding these exclusions helps you make informed decisions about your home protection strategy and avoid unexpected expenses. Always read your contract carefully and ask questions about specific coverage details.