Your home is likely one of the biggest investments you’ll make, and ensuring it’s protected—along with your budget—is a top priority. Homeowners insurance is a necessary part of homeownership, providing essential financial protection against unexpected events, but it often doesn’t cover as much as homeowners assume.
Heating and air conditioning systems, water heaters, and other regularly used appliances can break down suddenly, leaving homeowners with costly, out-of-pocket expenses—and typical homeowners policies don’t cover them. Knowing what homeowners insurance doesn't cover can help you identify and fill those gaps with the best home warranty plan before a big repair bill hits.
A homeowners insurance policy typically protects your property and belongings against repair and replacement costs from covered events like theft, fire, and other natural disasters. However, it generally doesn’t cover mechanical breakdowns caused by normal wear and use.
A home warranty can help fill those gaps by protecting covered home systems and appliances that homeowners rely on daily. With a home warranty, homeowners have an added layer of protection to help better manage unexpected repair and replacement costs.
| Common Home System or Appliance | Possible Repair Cost* |
| Air Conditioning System | $7,444 |
| Heating System | $7,386 |
| Electrical System | $3,257 |
| Built-in Oven | $4,154 |
| Water Heater | $2,248 |
*Costs shown are estimated average retail replacement costs and may vary significantly by provider, location, and job specifics.
A good home warranty plan is a valuable supplement to your insurance policy that provides critical budget protection. In a nutshell, homeowners insurance covers property damage caused by covered events; a home warranty is a service contract that covers the common home systems and appliances you rely on daily as they age and malfunction due to normal wear and use.
Consider this scenario: your aging dishwasher malfunctions and floods your kitchen. Your homeowners insurance may cover the cost to repair flooring damage, but not the faulty appliance. A home warranty would repair or replace a covered dishwasher.
When it comes to homeowners insurance and home warranty protection, the right question is not “Do I need a home warranty plan if I have insurance?” It’s, “Which home warranty plan works best with my insurance exclusions?”
It’s pretty simple. Once the home warranty coverage goes into effect, when a covered system or appliance fails, place a service request online or by phone, pay a trade call fee (similar to a co-pay), and the company will dispatch a qualified, local service provider to your home to diagnose and repair or replace the covered item.
Every home and every budget is unique, and it’s important to find the home warranty plan that best suits your needs.
Old Republic Home Warranty offers a variety of plans and additional coverage options that can be tailored to fit your needs.
This home protection plan is not insurance. It is a service contract regulated under applicable state law. Terms and conditions apply. Not available in all states. See a sample home warranty plan for coverage details, including service fees, limitations, and exclusions. Charges for non-covered items may apply. Home warranties offered under the Old Republic Home Warranty brand are service contracts issued by Old Republic Home Protection Company, Inc.