10 Questions about Home Warranties, Answered by the Experts

Home warranties can be a nebulous concept if you don’t know the ins and outs. We sat down with three experts, a building material supplier, a real estate agent, and an experienced roofer to demystify your questions about home warranties.

Who’s Who:

We carefully selected 3 different types of experts with ample first-hand experience working with home warranties on the contractor, home seller, and homeowner side. 

10 Questions about Home Warranties, Answered by Our Experts

We asked each expert the same set of questions, giving them free reign to share as much information as possible. Our goal was to reduce the confusion around home warranties, help homeowners more confidently use their policies, and understand exactly what to expect.

Question 1: What does a home warranty cover?

Erwin’s answer: A home warranty covers major systems and appliances that break down from  normal wear and tear, like plumbing, electrical, HVAC, water heaters, and kitchen appliances. Coverage varies, so checking the details and limits is important.

Haley’s answer: Home warranties come at different levels covering anything from appliances to your sewer line. Most of the upper end levels cover all of your appliances, HVAC system plumbing and inside electrical, you can then add on things like your sewer line. 

Brandon’s answer: Most home warranties will cover some roof leak repairs caused by wear and tear on the roof. A lot of plans have this as an optional add-on, paying to patch leaks and stop water intrusion. Most warranties are not meant to handle full roof replacements or major structural roof work.

Question 2: What doesn't a home warranty cover?

Erwin’s answer: It does not cover structural issues, roofing, windows, pre-existing damage, or cosmetic problems. Neglect and improper maintenance can also void coverage, so reading the fine print helps avoid surprises.

Haley’s answer: Pre-existing issues usually aren't covered and I have seen home warranty companies request inspection reports on newly purchased homes to verify these. Quite often roof's aren't covered and they do not cover structural issues within the home. Also, things like concrete patios, driveways and the outside materials of the home are not covered.

Brandon’s answer: Home warranties won’t cover a majority of roof issues beyond leak patching. They'll exclude certain roof styles as well, like flat or metal roofs, and also won’t cover roof-mounted features like skylights, chimneys, solar panels, or gutters. External damage from storms or hail is also not usually covered and would fall under homeowners insurance.

Question 3: In what situations does a home warranty hold the most value?

Erwin’s answer: A home warranty is most valuable for older homes with aging systems and appliances, first-time buyers unfamiliar with maintenance costs, and homeowners who want predictable repair expenses. It can also be useful for sellers offering coverage as a selling point.

Haley’s answer: Within a real estate transaction a home warranty can be a good negotiation tool for a seller. Especially if a system is aging and the buyer is asking for full replacement, a home warranty covering that system becomes a valuable tool.

Brandon’s answer: A home warranty holds the most value for roofs nearing the end of their lifespan that are prone to leaks. Warranties can be really helpful in climates that are more likely to accelerate roof wear, where small leaks are more common. In cases like these, some warranties will cover some minor repairs before they turn into major issues.

Question 4: Are there any times you wouldn't recommend a home warranty?

Erwin’s answer: It may not be worth it for new homes with manufacturer warranties, homeowners with emergency savings for repairs, or those who prefer choosing their contractors rather than using the warranty provider’s network.

Haley’s answer: I think you have to do your homework on home warranties. Many of them come with a lot of stipulations and call out, or service call fees. I know when I rented a property with a home warranty on it, they would “budget fix” the AC system. It was freezing all the time and they would just come and unfreeze it rather than replace it. They can also get very specific on who you can use to fix the items. So, for me, it is buyer beware, read the terms and stipulations. If you are buying a home and really have no money for fixes you may want to negotiate a home warranty as a back up plan.

Brandon’s answer: We wouldn’t recommend buying a home warranty just for the roof if the roof is new or recently replaced. A new roof usually comes with contractor and manufacturer warranties that already provide some pretty decent coverage. If the warranty also has low caps or many exclusions, it may not be worth the added cost.

Question 5: What are the most common misconceptions about home warranties?

Erwin’s answer: Many people think a home warranty covers everything, but it only applies to specific systems and appliances listed in the contract. Others assume it covers pre-existing issues or improper maintenance, which it doesn’t. Some expect instant service, but response times vary.

Haley’s answer: It’s a misconception that they will automatically replace things rather than fix them. It is actually the opposite, home warranty providers will often seek the most cost-effective solution.

Brandon’s answer: One huge misconception when it comes to warranties is thinking it will cover every roof problem that arises, including full replacements. In reality, most plans only cover certain leak repairs under strict conditions and won’t pay for issues caused by any sort of neglect. A lot of homeowners also wrongly assume that storm damage is covered, but that’s not included in a warranty.

Learn more about common home warranty myths.

Question 6: How do you recommend homeowners vet home warranty providers?

Erwin’s answer: To vet a home warranty provider, check customer reviews, read the contract carefully for exclusions, compare service fees and coverage limits, and confirm if you can choose your own contractor or must use theirs. Look for transparency in pricing and clear terms.

Haley’s answer: You will want to compare coverage, if they have a service call fee, who you can use to fix items and what their stipulations are on "pre-existing conditions"

Brandon’s answer: Take a close at their roof coverage terms, like what types of leaks are covered, coverage limits, and all exclusions. Research the company's reputation for handling roof claims and talk to some other roofers who’ve worked with them. A company with a clear policy and a track record of paying claims quickly is always a good sign.

Question 7: What red flags should homeowners avoid when purchasing a home warranty?

Erwin’s answer: Watch out for vague contract terms, hidden fees, long wait times for service, and companies with consistently bad reviews. If a provider won’t clearly outline coverage limits or denies too many claims, that’s a bad sign.

Brandon’s answer: Again, watch out for plans with very low limits for roof coverage or more vague language about exclusions. If a plan excludes things like “improper installation” without defining what that means, that’s a red flag. Also be careful of companies with a pattern of denying roof claims or, again, using vague reasons to avoid paying out.

Question 8: Have you witnessed any recent changes to the home warranty industry? Can you explain those?

Erwin’s answer: Lately, some home warranty companies are improving transparency and offering more flexible plans. There’s been a push for better customer service, but some providers are also increasing fees and adding stricter coverage limits, so reading the fine print is more important than ever.

Brandon’s answer: More companies are starting to include roof leak coverage in their base plans or offering it as a free add-on. Some are even starting to cover pre-existing roof leaks in premium plans, which wasn’t common in the past. It’s a sign that the industry is trying to compete more for homeowners with aging roofs.

Question 9: How do contractors become affiliated with home warranty providers?

Erwin’s answer: Home warranty companies usually partner with contractors by vetting their licenses, insurance, and track records. Some providers have strict approval processes, while others work with a broader network, which can affect service quality.

Question 10: What out-of-pocket costs can be expected for home warranty subscribers?

Erwin’s answer: Subscribers typically pay a service fee per claim, usually between $50 and $150, plus any costs for repairs or replacements that exceed coverage limits. Some plans also have exclusions that might require additional out-of-pocket expenses.

Haley’s answer: Apart from your yearly or monthly fee for the policy,a service fee is usually paid out of pocket when you make a claim. You’ll also want to be wary of early cancellation and auto renewal fees. 

Final Thoughts:

Erwin’s answer: Home warranties can be helpful in certain situations, but they are not a one-size-fits-all solution. I’ve seen homeowners frustrated by coverage limits and service delays, so reading the fine print is important. A warranty can add peace of mind, but it should never replace proper home maintenance or a solid emergency fund for unexpected repairs.

Haley’s answer: You have to read all the ins and outs to understand clearly what they will and won't fix. Often people assume certain items or reasons for things not working are covered only to find out they are not. Sometimes it can be better to just have a rainy day fund for home fixes. Then you can choose who makes the fixes/replacement and be the main decision maker on these items in your home.

Brandon’s answer: A home warranty should be best seen as a safety net for minor roof issues, not a replacement for proper maintenance or insurance. Keep your roof in good shape and think of the warranty as backup, not your main line of defense."

Count on Liberty Home Guard to Answer Your Home Warranty Questions

Home warranties don’t have to be scary or intimidating. At Liberty Home Guard, we pride ourselves on offering an easy-to-understand sample contract and knowledgeable customer service staff who will take the time to answer any lingering questions. 

Your home is personal. Your protection should be too. Call us today at (833) 543-7830 or request a free quote to learn more about your home warranty coverage options.