Most homeowners focus on what a home warranty covers. The more important question is what it does not cover.
Understanding common exclusions can prevent claim denials and frustration later. Home warranties are limited service contracts, and coverage is rarely as broad as people assume.
If you’re still deciding whether one makes sense, see our guide on is a home warranty worth it after the first year.
Here are the most common things a home warranty does not cover.
Pre-Existing Conditions
Most home warranty companies will not cover problems that existed before coverage began.
If a system was already failing, improperly installed, or poorly maintained, a claim may be denied. This is one of the most common reasons homeowners are surprised by exclusions.
Improper Installation or Code Violations
If an appliance or system was installed incorrectly or does not meet local building code, repairs may not be covered.
Home warranties typically assume systems were properly installed and maintained before enrollment.
Cosmetic Damage
Most plans do not cover cosmetic issues. Scratches, dents, rust, or minor wear that does not affect how something functions are usually excluded.
Home warranties are designed to address mechanical breakdowns, not appearance issues.
Structural Components
Home warranties generally do not cover structural elements of the home. This includes:
• Foundation
• Roof structure
• Walls
• Windows
• Doors
These items are typically covered under homeowners insurance, not a home warranty contract.
Maintenance-Related Failures
If a breakdown is caused by lack of maintenance, the claim may be denied.
For example, failing to service an HVAC system regularly could result in limited or denied coverage. Routine upkeep is usually required under most service agreements.
Before enrolling, review the full exclusions list from a reputable home warranty provider to understand how maintenance requirements are handled.
Coverage Caps and Payout Limits
Even when something is technically covered, there are often payout limits.
A plan may cover air conditioning, but only up to a specific dollar amount. If the repair exceeds that limit, the homeowner is responsible for the difference.
Understanding coverage limits is just as important as reviewing what is excluded.
We break down real numbers in our guide to average home warranty cost per year.
The Bottom Line
Home warranties can offer peace of mind, but only when homeowners clearly understand the exclusions.
Reading the contract carefully, comparing coverage limits, and reviewing maintenance requirements can help avoid frustration later.
Not every situation calls for a warranty. For some homeowners, alternatives may make more financial sense.
Some homeowners may prefer alternatives like building a repair savings fund instead.
If you’re comparing options, see our Best Home Warranty Companies Compared (2026 Guide).