Learn what homeowners insurance typically excludes and how a home warranty may help with everyday breakdowns.
October 30, 2026
Homeowners insurance is one of the most important protections you can have as a homeowner. It can help cover damage from major events like fire, theft, storms, and certain accidents. In many cases, mortgage lenders require it.
But homeowners' insurance does not cover everything.
Many homeowners are surprised to learn that if their air conditioner stops working, their refrigerator breaks down, or their water heater fails from normal wear and tear, homeowners insurance usually will not help. That’s where a home warranty may come in.
A home warranty is designed to help cover repairs or replacements for certain home systems and appliances when they break down from everyday use. While it is not a replacement for homeowners insurance, it can help fill an important gap.
Here’s what homeowners insurance usually doesn’t cover—and how a home warranty can help protect your budget.
Homeowners insurance is mainly designed to protect your home and belongings from sudden, unexpected events. These are often called covered perils.
Depending on your policy, homeowners insurance may help cover damage caused by:
For example, if a storm damages your roof or a fire damages your kitchen, homeowners insurance may help pay for repairs after you meet your deductible.
But insurance is generally focused on damage from covered events—not on routine breakdowns caused by age, regular use, or normal wear and tear.
One of the biggest misconceptions about homeowners insurance is that it protects everything inside your home. In reality, many everyday problems are considered maintenance issues, not insurance claims.
Homeowners insurance usually does not cover:
So, if your refrigerator stops cooling because the compressor wears out, your homeowners insurance probably will not pay for the repair. If your air conditioner fails during a summer heatwave because a covered component breaks down, that may be a home warranty issue instead.
A home warranty is a service contract that helps cover the cost of repairing or replacing certain home systems and appliances when they break down from normal wear and tear.
Depending on the plan, a home warranty may cover items such as:
When a covered item breaks, you typically file a claim with your home warranty provider. If the issue is covered, the company sends a technician or an approved service provider. You pay a service fee, and the warranty provider may cover the approved repair or replacement up to the plan’s limits.
This can help make repair costs more predictable, especially if you own an older home or have aging appliances and systems.
The difference between home insurance and a home warranty often comes down to why something broke.
Let’s say your air conditioning system stops working.
If your AC is damaged in a covered house fire or storm, homeowners insurance may apply. But if your AC stops cooling because a covered part wears out over time, homeowners insurance probably will not cover it. A home warranty may help, depending on your plan.
The same idea applies to other household items.
If a covered storm damages your roof, that may be an insurance issue. But if your water heater fails after years of normal use, that may be a home warranty issue.
In general:
Home repairs can be expensive and difficult to predict. Even if you maintain your home carefully, appliances and systems do not last forever.
An air conditioner may fail during the hottest week of the year. A water heater may stop working without warning. A dishwasher, refrigerator, or washing machine may break when you least expect it.
Without a home warranty, you are usually responsible for finding a technician and paying the full repair or replacement cost yourself. With a home warranty, you may have help arranging service and covering part of the cost, depending on your contract.
This can be especially helpful if:
A home warranty can be helpful, but it does not cover everything. Just like insurance policies have exclusions, home warranty plans also come with rules, limits, and conditions. If your home is damaged by a major event, your homeowners insurance may be the right place to turn. If a covered system or appliance breaks down from everyday use, your home warranty may be more relevant.
The two protections are different, but they can work together.
Many homeowners choose to have both because they cover different situations.
Homeowners insurance helps protect you from major financial losses caused by covered events. A home warranty helps with everyday breakdowns of covered home systems and appliances.
You may want both if you want broader protection for your home. Insurance can help with large property damage claims, while a warranty can help with the kinds of repair issues homeowners are more likely to face in daily life.
However, a home warranty is optional. Whether it makes sense depends on your home, budget, repair risk, and the specific coverage offered by the plan.
If you are considering a home warranty, do not choose a plan based only on price. The cheapest plan may not be the best fit if it excludes the systems or appliances you care about most.
Before buying, compare:
Pay special attention to high-cost items like HVAC, plumbing, electrical systems, and water heaters. These are often the systems homeowners worry about most, but coverage details can vary by provider.
Homeowners insurance is important, but it usually does not cover everyday breakdowns from normal wear and tear. If your air conditioner, refrigerator, water heater, dishwasher, or plumbing system stops working because of age or regular use, you may be responsible for the repair yourself.
A home warranty can help fill that gap by covering certain repairs or replacements for covered systems and appliances. It is not a replacement for homeowners insurance, and it will not cover every repair. But for many homeowners, it can provide added peace of mind and help make unexpected repair costs easier to manage.
Before choosing a plan, compare home warranty providers carefully. Look at what is covered, what is excluded, how much you will pay per service visit, and what limits apply. The right plan can help protect your budget when covered items in your home break down.\
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