The ABCs of Coverage: Does my Old Republic home warranty cover that?Posted on Aug 4, 2021 4:32:22 PM by Old Republic Home Protection
Understanding your ABCs makes using your Old Republic home warranty as easy as 1-2-3! We use three simple steps to determine if a service request is eligible for coverage under the terms and conditions of your ORHP home warranty plan. We call these the ABCs of Coverage!
A = Location of covered system or appliance
Covered systems and appliances must be installed for diagnosis and located within the interior of the main foundation of the home and garage (inside the load-bearing walls of the home).
For example, a leaking hose bibb located on the exterior of the home’s walls and not within the main foundation is not covered by the home warranty plan.*
Some items located outside of the main foundation are covered, as indicated by the ✦ in the plan. For example, a water heater may be located in a structure attached to the home, and not within the main foundation, but we do provide coverage.
Pro tip: Look in your state’s plan brochure for home systems and appliances with the ✦ icon. These items are covered under the terms and conditions of the plan, even if they're located on the exterior of the home.
B = Operating properly on the effective date of the plan
The second requirement of the ABCs of Coverage states that the system or appliance must be correctly installed and working properly on the effective date of the plan.
An Old Republic home warranty, similar to other home warranty companies, does not provide coverage for pre-existing conditions, unless:
The malfunction was unknown to the home seller, home buyer, real estate agent, or home inspector.
The malfunction was undetectable and would not have been detectable by visual inspection or simple mechanical test.
A visual inspection of the covered item verifies that it appears structurally intact and without damage or missing parts that would indicate inoperability. A simple mechanical test consists of turning the unit on and off, verifying that the unit operates without irregular sounds, smoke, or other abnormal outcomes.
Let’s look at an example: A plan holder closed on their new home ten days ago. The drainpipe under the bathroom sink is slowly leaking. From the clear evidence of secondary damage, it has been leaking for longer than ten days. When performing a visual inspection, you can see water damage in the cabinet. This situation would not be covered by an Old Republic home warranty plan because a visual inspection could easily have detected the issue.
But what if the leak is farther back, behind the wall? We can’t see the pipe, so the leak would be difficult to catch in a visual inspection. But what can we see? The wall! If the wall shows no visible water damage, if no one knew the leak existed, and if the home inspector did not identify it, then the leak would not be denied as a pre-existing condition at Old Republic Home Protection.
C = Normal wear and use
Lastly, covered systems and appliances must become inoperable due to normal wear and use (including rust, corrosion, and chemical or sediment buildup) after the effective date of coverage.
Little Jimmy using the dishwasher door as a step stool to get to a cereal box damages the dishwasher hinge. This damage is unfortunate but does not constitute normal wear and use.
Normal wear, however, does occur with regular and intended use. Home systems and appliances deteriorate and break down, even when properly maintained. While your appliances may last up to 12 years, a Consumer Reports survey found that nearly 75% of water heaters fail by age 12, and 15-40% of appliances will need repairs before they’re five years old.†
Save time and money
Reviewing and understanding the ABCs of Coverage can save you time and money. Once we dispatch a service provider, even if service is not rendered, the plan holder still has an obligation to pay the trade call fee. Remember to always read the specifics of coverage before placing a service request.
*Enhanced slab leak limit/external plumbing option may provide coverage for external water leaks. See state plan for complete coverage details.
†For more information, visit consumerreports.org.