Buying a home comes with a long list of new things to figure out. Home warranties tend to sit somewhere near the bottom of that list, important enough that someone brought it up at closing, but easy to push off until later. If you've been wondering what a home warranty actually does, whether it's worth it, or how it works when something breaks, here's a straightforward look at what you need to know.
So what does a home warranty actually cover?
Think of it as a safety net for the major systems and appliances in your home, your heating and cooling system, plumbing, electrical, water heater, kitchen appliances, washer and dryer, and more. When something breaks down from normal wear and use, the warranty helps cover the repair or replacement cost.
It's not the same as homeowner's insurance, which is for damage caused by things like fires or storms. A warranty covers the stuff that just wears out over time. And it always does eventually.
That brings up a good question: What's the difference between a home warranty and homeowner's insurance?
Homeowner's insurance is for damage. A fire, a break-in, a storm that takes out part of your roof, that's what insurance handles. A home warranty is for breakdowns. When your water heater stops heating or your dishwasher won't drain, that's a warranty situation, not an insurance one.
Most lenders require homeowner's insurance. A home warranty is optional, but it covers a whole category of problems that insurance simply doesn't touch.
Is it actually worth it, especially for someone just starting out as a homeowner?
For most first-time buyers, yes. The first year or two tends to come with surprises, systems you didn't know were aging, an appliance that passed inspection and quit six months later. A home warranty puts a predictable ceiling on what those surprises cost you. Instead of a $2,000 HVAC repair coming out of nowhere, you pay a deductible and the warranty helps cover what's eligible under your plan.
For someone still adjusting to a new mortgage and all the other expenses that come with owning a home, that kind of predictability is worth a lot.
What about older homes or older systems? Does that affect coverage?
Age alone isn't a disqualifier. What matters is whether the system was in working condition when coverage started. An older water heater that's still functioning when your plan begins is covered. One that was already on its way out before the policy started is a different story.
Honestly, if your home has older systems, a home warranty can be more valuable, not less. The older something gets, the more likely it is to need attention, and the more expensive that attention tends to be.
What makes APHW different from other home warranty companies?
Most home warranty companies send their own contractor when you file a claim. You get whoever they dispatch, on their schedule, whether you've heard of them or not.
With APHW, you choose your own licensed contractor. That means you can call someone you've worked with before, someone a neighbor recommended, or anyone local you actually trust. Your contractor diagnoses the problem, contacts APHW directly, and the covered repair gets handled from there. It's a pretty significant difference when you're already dealing with something broken in your home.
How does the actual claims process work?
It's simpler than most people expect. You start a claim by calling 800.648.5006 or online at APHW.com; both are available 24/7. You'll get a claim number, then you call the licensed contractor of your choice to come take a look. Before any work gets done, your contractor contacts APHW with their diagnosis. APHW confirms what's covered and the approved amount, and your contractor makes the repair. That's the whole process.
Are there things a home warranty won't cover?
Yes, and it's worth knowing before you ever need to file a claim. Home warranties cover breakdowns from normal wear and use, not pre-existing conditions, cosmetic damage, or problems that came from neglect or improper installation. Things like cracked tile, peeling paint, or a full roof replacement aren't covered. Every plan has exclusions, and reading through them upfront is a much better experience than finding out during a claim.
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When does coverage actually kick in?
For real estate transactions, buyer coverage typically starts at closing. For plans purchased directly, coverage begins on the start date in your service agreement. A couple of items, septic systems and water well pumps, have a 30-day waiting period built in.
How do I figure out which plan is the right fit?
It really comes down to what your home has and what you want protected. APHW's standard plan covers the major systems most homeowners are concerned about. If you have a pool, a gas fireplace, a water softener, or other specifics, there are optional coverages for those too.
If you're not sure where to start, a call to 800.648.5006 can help sort it out. It's not a sales call, just a conversation about what you've got and what makes sense to cover.
Still have questions? Call 800.648.5006 or visit APHW.com. Someone is there 24/7/365.
Terms and conditions apply. Coverage varies by plan. Refer to your service agreement for full details.