Pre-Existing Conditions and Home Warranties: What You Need to Know

"Pre-existing condition" is a phrase you'll find in nearly every home warranty contract. Understanding it before you buy can prevent a frustrating denial later.

What it means

A pre-existing condition is a problem that already existed before your coverage started. A furnace with a cracked heat exchanger on day one, for example, usually won't be covered when it finally fails.

Known vs. unknown problems

Some plans, especially those bought during a home sale, may cover unknown pre-existing conditions that couldn't be found with a simple visual inspection. Others exclude all pre-existing problems. The wording matters, so read it closely.

How providers decide

The technician usually reports on the cause of the failure. Signs of long-term neglect, prior repairs or damage may lead a provider to classify the problem as pre-existing.

How to protect yourself

• Get a home inspection or a pre-coverage checkup and keep the report.
• Take dated photos or videos of working appliances and systems.
• Keep maintenance records and receipts.
• Buy coverage while everything is working, not after something starts acting up.

Questions to ask a provider

Ask whether unknown pre-existing conditions are covered, whether an inspection is required, and how disputes are handled. Our FAQ covers more of the fine print.