Your homeowners insurance won’t cover the most expensive thing that breaks in your house

Here’s what it actually covers, what it doesn’t, and how to close the gap

You pay your homeowners insurance every month. You probably assume it covers you if something goes wrong with your house. And it does — if a tree crashes through your roof, if a pipe bursts during a freeze, or if someone breaks in and steals your TV.

But when your furnace dies in the middle of winter? That’s on you. When your AC quits in July? Also on you. Water heater, dishwasher, refrigerator, electrical panel — all on you. Homeowners insurance covers damage from sudden events. It does not cover the systems and appliances that wear out over time. That’s a gap most people don’t discover until they’re staring at a repair estimate they weren’t expecting.

A home warranty is designed to cover exactly what insurance won’t: the wear-and-tear breakdowns that happen to every home eventually. Plans typically run $30-60/month, and they cover repairs or replacements for your major systems and appliances. We compared three worth considering.

Best home warranty plans

What your insurance covers vs. what it doesn’t

Homeowners insurance is built for catastrophic events. Fire, storm damage, theft, liability — the sudden, dramatic things. It’s required by your mortgage lender because it protects the structure of your home from disaster.

What it explicitly does not cover is mechanical failure from normal use. Your HVAC system running for 15 years and finally giving out? Normal wear and tear. Your water heater corroding from the inside after a decade? Normal wear and tear. Your refrigerator compressor failing? Same. Insurance companies classify all of these as maintenance issues, and maintenance is the homeowner’s responsibility.

That distinction matters because the most common and expensive home repairs fall squarely in the “not covered” category.

Three home warranty plans we’d compare

Not all home warranty companies cover the same items or charge the same fees. We looked at three that stood out for different reasons: one for comprehensive coverage with no age restrictions, one for affordability and retail perks, and one for flexible, customizable plans.

What happens after you get a quote

Getting a quote is free and takes about 2 minutes. You’ll enter your zip code and basic contact information, and the warranty company will provide plan options and pricing for your area.

American Home Shield lets you choose between three plan tiers (Silver, Gold, Platinum) and select your preferred service fee. You can review the full sample contract before committing to anything. There’s no obligation to buy after getting a quote.

Once you do sign up, coverage typically starts after a 30-day waiting period. After that, you file a claim by calling the warranty company or submitting online, they dispatch a technician, and you pay your service fee. The warranty handles the rest.