Home Warranty
Protect your new home's systems and appliances from day one.
Overview
What Is a Home Warranty?
A home warranty is a one-year service agreement that covers the repair or replacement of many major home system components and appliances when they fail due to normal wear and use. It is renewed annually and gives homeowners a predictable way to manage the cost of unexpected mechanical breakdowns.
A home warranty is not the same as homeowners' insurance, and it is not a substitute for a home inspection. Each serves a different and distinct purpose:
The Pocono Advantage
Why Pocono Buyers Benefit from a Home Warranty
A home warranty is valuable for any buyer — but it is particularly relevant for Pocono buyers:
Vacation & Second Homes
Many Pocono buyers purchase a property they won't occupy full-time. A mechanical breakdown — a failed water heater, a malfunctioning HVAC system, a broken appliance — can go unnoticed for days or weeks if the owner isn't on-site. A home warranty provides a single point of contact to request service and get it resolved, even from a distance.
Short-Term Rental Properties
STR investors run their properties as a business. A mechanical failure during a guest stay can mean negative reviews, refunds, and lost revenue. A home warranty gives STR owners a structured way to address covered breakdowns quickly, reducing downtime between bookings.
Properties with Older Systems
The Poconos have a large inventory of vacation homes and cabins built in the 1970s–1990s. Older HVAC systems, water heaters, and appliances are statistically more likely to fail. A warranty helps manage the financial exposure of aging systems.
Peace of Mind in Year One
No inspection can predict every mechanical failure. The first year of ownership carries the highest risk of surprise breakdowns as buyers learn the property's quirks. A warranty is a financial safety net during that critical first year.
Coverage
What Home Warranties Typically Cover
Plans typically offer tiers — from basic system-only to comprehensive plans that add appliances, roof leak repair, and more. Most providers offer two or three tiers at different price points.
Systems Commonly Covered
- Heating (furnace, boiler, or heat pump)
- Air conditioning (central AC or mini-split)
- Electrical (wiring, panels, outlets, hard-wired components)
- Plumbing (supply lines, drain lines, fixtures, stoppages)
- Water heater
- Ceiling fans, garage door openers, doorbells
- Built-in exhaust, attic, and whole-house fans
Appliances (Select Plans)
- Refrigerator (incl. built-in icemaker)
- Range, oven, cooktop
- Dishwasher
- Built-in microwave
- Garbage disposal
- Washer and dryer
Enhanced Coverage (Premium Plans)
- Roof leak repair (up to a specified annual limit)
- Code violations, permits, and modifications required as part of a covered repair
- Higher per-item coverage limits
- Member benefits like HVAC tune-ups or rekey services
Optional Add-Ons
- Well pump coverage
- Septic system coverage
- Pool and spa equipment
- Additional refrigerators or freezers
- Guest unit or second dwelling coverage
Exclusions
What Home Warranties Typically Do NOT Cover
Home warranties cover mechanical failure from normal wear and use. They do not cover:
- Pre-existing conditions known or visible at the time of purchase
- Damage from misuse, neglect, or improper installation or maintenance
- Cosmetic defects — stains, dents, scratches
- Structural components — foundation, framing, walls, roof structure (roof leak repair may be an add-on/premium feature)
- Outdoor systems — sprinklers, outdoor kitchens, landscaping equipment (unless added)
- Manufacturer recalls or defects under an existing manufacturer warranty
- Items not installed/maintained per manufacturer specifications
- Damage from pests, rodents, or insects
- Hazardous materials — mold, asbestos, or lead paint remediation
The Process
How a Home Warranty Works
Requesting Service
A covered system or appliance breaks down due to normal wear and use.
You contact the provider (phone, online portal, or app) to submit a service request — most are available 24/7.
The provider dispatches a pre-screened contractor; you pay a fixed trade service fee when they arrive.
The contractor diagnoses the issue. If covered, the provider pays for the covered repair or replacement; your out-of-pocket is limited to the service fee plus any non-covered costs.
If the item can't be repaired, the provider may authorize a replacement up to your plan's coverage limit.
Trade Service Fees
What you'll pay per service call
A trade service fee (or service-call fee / co-pay) is a fixed amount paid to the contractor each time one is dispatched for a covered repair — separate from the annual premium. Amounts vary by provider and tier; higher service fees usually mean lower premiums and vice versa. Compare both when evaluating plans.
Seller Coverage Option
Protection while the home is listed
Many providers offer a seller coverage option — protection while the home is listed, transferring to the buyer at closing. It typically:
- Covers major systems while listed (often up to 6 months)
- Requires no upfront payment (collected at closing)
- Transfers automatically to the buyer at settlement
- May have coverage caps during the listing period
Offering a warranty with a listing can be a meaningful differentiator, especially for Pocono buyers purchasing from a distance.
Questions About Home Warranties?
Kerry is happy to explain how a home warranty fits into your purchase and can connect you with American Home Shield for current plan information.
This page is provided for general educational purposes only. Home warranty plans, coverage options, plan names, service fees, coverage limits, exclusions, and pricing are subject to change without notice and vary by provider, plan, and location. This is not a warranty agreement or coverage guarantee. Always obtain and review the current plan agreement and sample contract directly from your warranty provider before purchasing. Kerry McCaw is a licensed Pennsylvania real estate professional — not a warranty or insurance professional. All information deemed reliable but not guaranteed.