A home warranty is a contract with a company that agrees to pay to fix or replace major systems and appliances in your house if they malfunction or stop working. Unlike homeowner’s insurance, which covers damage caused by unforeseen events, home warranty guards against everyday wear and tear of household systems and devices. While the policy can be beneficial, you must carefully read the fine print. Here are ten things a home warranty doesn’t cover. Pre-existing problems Most home warranty policies don’t pay for fixing or replacing anything damaged or malfunctioning before the warranty was bought. You must pay from your pocket to resolve the problem in such a situation. Outdoor fixtures Some policies may cover outdoor fixtures like air conditioners but frequently exclude sprinkler systems, swimming pools, and spas. You may need a different approach if you want coverage for these things. Cosmetic damage Home warranties don’t cover cosmetic damages like scratches, dents, or rust but functional problems with your home’s systems and appliances. Non-mechanical parts They may exclude non-mechanical objects like knobs, handles, and shelves and only cover mechanical devices like HVAC systems. Code violations Your home warranty may not apply if a repair is necessary because an electrical system doesn’t comply with the law.