Your HVAC dies on the hottest Saturday in August. You call the home warranty company and hear: "Your coverage expired six weeks ago." That's a $4,000 to $8,000 repair bill you thought was covered. Home warranties often run 12 months from closing. The end-date notice — if one arrives at all — gets buried in junk mail.
This guide covers what home warranties include, when they run out, and how to get every dollar of value from them before they expire.
My water heater burst on a Sunday morning in February 2025. That's 50 gallons across the garage floor. I called my home warranty company. They told me my coverage had expired seven weeks earlier. The seller had included a one-year warranty at closing. I never set a reminder for the renewal date. The emergency swap cost $2,100 out of pocket. Under the warranty, it would have been a $75 service call.
What a Home Warranty Actually Covers
A home warranty is a service contract. It covers the repair or swap of major home systems and appliances when they break down from normal wear and tear. It’s not the same as homeowners insurance. More on that below. It also doesn’t cover everything in your house.
Most standard plans cover:
- HVAC systems — furnace, central air conditioning, ductwork
- Plumbing — interior pipes, faucets, toilets, water lines
- Electrical — wiring, outlets, breaker panels, ceiling fans
- Kitchen appliances — dishwasher, oven/range, built-in microwave, garbage disposal
- Water heater — tank and tankless models (check your plan)
- Garage door opener — motor and remote mechanism
- Washer and dryer — included in some plans, an add-on in others
What home warranties typically do not cover:
- Structural issues — foundation cracks, load-bearing walls, framing
- Roof and windows
- Pre-existing issues — problems the warranty company says existed before coverage started
- Cosmetic damage — dents, scratches, chipped paint on appliances
- Outdoor items — pools, sprinkler systems, and septic tanks. These may be covered if you buy an add-on.
The pre-existing issue rule trips people up the most. Say a home inspector noted the HVAC was “aging” or “showing signs of wear.” The warranty company might use that report to deny your claim. Read your contract’s fine print on this one.
Home Warranty vs. Homeowners Insurance
People mix these up all the time. The mix-up costs real money. A home warranty covers breakdown from normal wear and tear. Homeowners insurance covers damage from sudden events — fire, storms, theft, or if someone gets hurt on your property.
They complement each other. Neither replaces the other.
Here’s a simple way to think about it. A pipe in your basement bursts because the copper wore out after fifteen years. That’s a warranty claim — the pipe failed from normal wear. Now picture a pipe that bursts because temps dropped to -10°F and froze the water inside. That’s an insurance claim — an outside event caused the damage. Different causes. Different coverage. Different companies to call.
Is your homeowners insurance coming up for renewal? Check out our insurance renewal checklist to make sure you’re not overpaying or under-covered.
| Factor | Home Warranty | Homeowners Insurance |
|---|---|---|
| What it covers | Systems & appliances (HVAC, plumbing, electrical, kitchen appliances) | Structure & property damage (fire, storms, theft, liability) |
| Typical cost | $350–$600/year + $75–$125 service fee per visit | $1,500–$3,000/year + deductible ($500–$2,500) |
| Trigger | Normal wear and tear — things break down over time | Sudden events — fire, storm, burst pipe, theft |
| Duration | 1 year (renewable annually) | 1 year (renewable annually; required by mortgage lender) |
| Claim process | Call warranty company → they dispatch contractor → pay service fee | File claim with insurer → adjuster inspects → pay deductible |
| Who needs it | Homeowners with aging appliances or systems (5+ years old) | All homeowners (legally required by most mortgage lenders) |
Home Warranty Expiration: When Coverage Ends
The standard home warranty plan you get at closing lasts one year from the closing date. If you bought one on your own, it runs one year from the plan’s start date. Some companies offer multi-year plans at a discount. But the single-year contract is by far the most common.
Builder’s warranties on new builds follow a different schedule. It’s often called the “1-2-10” rule:
- 1 year — workmanship and materials (paint, drywall, trim, doors that don’t close properly)
- 2 years — mechanical systems (HVAC, plumbing, electrical)
- 10 years — structural defects (foundation, framing, load-bearing components)
That means cosmetic stuff expires first. Does your new home have a squeaky stair or a cabinet door that won’t line up? Report it within the first twelve months. After that, the builder doesn’t have to fix it. The two-year systems window and ten-year structural window give you more time. But they’re still finite. Most warranty companies sell extended plans if you want coverage after the first term.
What to Do Before Your Warranty Runs Out
The last month of your warranty is the most valuable month. Treat it like a deadline and run through everything while you still can.
- Inspect all covered systems and appliances. Walk through every room. Open every appliance. Flush every toilet. Turn on every faucet. Look for anything that doesn’t work right — even small things.
- File any pending claims. Got a slow drain in the guest bathroom? A furnace that clicks on startup? File those claims now. Minor issues become costly repairs once you’re paying full price.
- Test your HVAC in both modes. Run the heat and the cooling, even if it’s the wrong season. A system that heats fine might have a failing part on the cooling side. You won’t know until you test it.
- Run all appliances through full cycles. Start the dishwasher. Run the oven at 400°F for 30 minutes. Do a load of laundry on hot. Listen for odd noises. Check for leaks. Watch for error codes.
- Check your water heater. Look at the make date on the label. If it’s older than 8–10 years, it’s near end-of-life. Get a warranty tech out to inspect it before your coverage runs out.
- Take photos of everything. If something looks worn, rusted, or off, snap a photo with a timestamp. This creates a record that the issue started during the coverage period.
Filing a Claim Before Expiration
The claims process trips people up. It works differently than calling a repair company on your own. Here’s how it goes:
Step one: call the warranty company, not your own contractor. This is the most common mistake. If you hire a plumber on your own without going through them first, they’ll almost always deny the refund. The warranty company sends their own approved contractors.
Step two: pay the service call fee. This is your out-of-pocket cost per visit. It’s often $75 to $125 based on your plan. Think of it like a copay at the doctor. The contractor shows up and finds the problem. If it’s covered, they repair or replace the item. You pay the service fee. The warranty company covers the rest.
Step three: if the claim is denied, appeal. Warranty companies deny claims more often than you’d expect. Common reasons: “pre-existing issue,” “bad upkeep,” or “not covered under your plan.” Ask for the denial in writing. Request a second look from a different contractor. Escalate to a supervisor. Many denied claims get reversed on appeal. The FTC's guide to home warranties explains your rights when a claim is denied.
One more thing: don’t wait until the last week to file. Warranty companies get wary of claims filed right at the deadline. The repair process can take weeks for scheduling, parts ordering, and follow-up visits. Start your inspection at least 30 days before the end date.
Renewing vs. Switching Providers
When your warranty expires, you’ll get a renewal offer. It’s usually $350 to $600 per year for a standard plan. It costs more if you add pools, septic systems, or extra appliances. Before you auto-renew, do some quick math.
Compare with others. Get quotes from at least two or three other warranty companies. Prices and coverage vary a lot. American Home Shield, First American, and Choice Home Warranty all price similar coverage differently. A plan that costs $500/year at one company might run $380 elsewhere with better reviews.
Read recent reviews. Service quality varies a lot in this field. A company with great reviews three years ago might have switched contractors and tanked. Check Google reviews, BBB complaints, and Reddit threads from the past 6–12 months.
Think about the age of your appliances. Say your HVAC is 12 years old. Your water heater is 9. Your dishwasher is on its last legs. A $450/year warranty plan is a bargain next to replacing any one of those. A new HVAC install runs $5,000 to $12,000. A water heater swap costs $1,000 to $3,000. The warranty pays for itself the moment one major system fails.
On the other hand, say you bought a new home with all-new appliances and systems. Self-insuring might make more sense. Put $40 to $50 a month into a savings account instead of paying the warranty fee. If nothing breaks for five years, you’ve saved $2,000+. The risk is that something costly fails early. But on newer gear, those odds are lower.
Builder’s Warranty vs. Home Warranty Plan
If you bought a newly built home, you likely have a builder’s warranty. It came included at no extra cost. This is separate from a home warranty plan you’d buy from a company like American Home Shield or Fidelity National.
Builder’s warranties come in two forms. An express warranty is written into your purchase contract. It spells out what the builder will fix and for how long. This follows the 1-2-10 structure noted above. An implied warranty exists under state law even if the builder doesn’t put it in writing. Implied warranties of habitability mean the home must be fit to live in. Implied warranties of workmanship mean the build must meet fair quality standards.
Some states also have new-home lemon laws or right-to-cure statutes. These give homeowners extra protections. They often require you to notify the builder of a defect in writing. You must give them a chance to fix it before you can file a lawsuit. Timelines vary by state. Some give builders 30 days. Others allow up to 90.
A third-party home warranty plan pairs well with a builder’s warranty. The builder covers build defects. The warranty plan covers breakdowns from normal use. There’s some overlap on systems (HVAC, plumbing, electrical) during the first two years. But after that, only the warranty plan gives ongoing coverage.
For a deeper look at how product warranties work for appliances and electronics, see our warranty expiration guide.
While you're checking home safety, make sure your fire extinguishers haven't expired. They're one of the most overlooked household items with a hard end date.