Who actually pays: insurance, warranty, or you

Homeowners insurance: sudden, not gradual

The dividing line in almost every policy is sudden and accidental versus gradual and preventable. A pipe that bursts is covered; the same pipe leaking slowly for two years is not, and neither is the damage it caused. This is why a slow leak found in an inspection is worth acting on immediately — every month it continues moves it further into the excluded category.

Home warranty: systems and appliances

A home warranty is a service contract, not insurance. It typically covers mechanical failure of systems and appliances — HVAC, water heater, built-ins — subject to a service fee, and specifically excludes pre-existing conditions. An item written up in an inspection before your coverage began is usually the definition of pre-existing.

If a warranty came with the purchase, check whether it was in force at inspection. The sequence of dates decides the claim.

Manufacturer and workmanship warranties

Roofs, water heaters, HVAC equipment, and windows carry manufacturer warranties measured in years to decades, and they follow the product rather than the owner in many cases. New construction usually carries a builder's workmanship warranty for the first year and a structural warranty for far longer.

Finding the model number and install date on the equipment label takes five minutes and occasionally saves thousands.

Order to check

Manufacturer warranty first, because it costs nothing and can cover the part outright. Then home warranty, if one is in force. Then insurance, but only for sudden damage — a declined claim for gradual damage still shows on your claims history and can affect your premium.