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FOR IMMEDIATE RELEASE
ASSOCIATION
ISSUES CHECKLIST OF WHAT
TYPICAL HOME WARRANTIES COVER, DON'T COVER
DUBLIN, CA
-- What does a home warranty cover and what doesn't it cover?
It's a question gaining increased interest as nearly nine out of every
10 existing home sales in California include a home warranty.
In an effort
to assist consumers, the Home Warranty Association of California (HWAC)
has provided an outline of home warranty coverage terms and conditions.
Typically, a
home warranty covers a home’s major operating systems from breakdowns
due to wear and tear for one year after the close of escrow. Items
covered include plumbing, heating and electrical systems, most built-in
appliances, and water heaters. In recent years, most HWAC member companies
have provided additional coverage for homeowners for such items as
air conditioners, washer/dryers and refrigerators. Accordingly, coverage
parameters include:
- • A "covered"
system or appliance must be listed as a covered item in the contract;
it must be located within the confines of the main foundation of
the home or
garage (with the exception of exterior well pump, air conditioner,
and pool equipment).
Items must also be in good working order at the start of coverage,
and must
be properly installed.
- An example
of an item not covered under the contract includes a pipe or plumbing
line that is broken or leaking outside the home's main foundation.
- Home warranties
do not cover consequential or secondary damages. Take a leaking
water heater, for example. The warranty company will repair the
leaking water heater up to and including the replacement of the
unit if necessary. But the warranty does not cover water damage
that may have been caused by the leak. Typically this kind of damage
would be covered by the homeowners insurance policy.
- Home warranties
cover residential property. They do not cover residences utilized
for commercial use such as day care centers, or non single-family
homes like fraternity houses, or nursing homes.
- A home warranty
does not require a home inspection or other
inspection prior to coverage. However, if a defect is obvious or
known prior to the home warranty becoming effective, it is not covered.
- A home warranty
covers virtually any age, make or model of covered systems and appliances
designed by the original manufacturer for residential use. It does
not, however, cover equipment categorized by the manufacturer as
commercial equipment.
- When a contractor
is required to repair a leak in a wall or floor,
the home warranty company will generally provide access and return
the opening to a rough finish condition. The home warranty company
is not responsible for restoration of any wall coverings, floor
coverings, cabinets, countertops, tiling, paint, or the like.
- A home warranty
company is not responsibile for repairs arising from a manufacturer's
recall of covered items, or any items while still under an existing
manufacturer's, distributor's or in-home warranty.
- A home warranty
company is not responsible for costs required to correct code violations,
or in some contracts, costs related to permits. A home warranty
company will not perform service or pay costs involving hazardous
or toxic materials, mold, or asbestos, nor will it pay for disposal
of refrigerants, freon or contaminants. It is important to read
your home warranty contract carefully, particularly the "covered"
and "not covered" sections, HWAC officials
said.
HWAC is a statewide organization of home warranty companies
representing approximately 95 percent of warranty contracts sold in
California. Member firms include American Home Shield, AON Home Warranty,
Buyers Home Warranty Company, Fidelity Chicago National Home Warranty
Company, First American Home Buyers Protection, and Old Republic Home Protection Company, Inc.
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