Home Warranties, Insurance, and Protection Options
At nearly every closing, buyers ask me whether the home warranty covers the roof. It does not -- that is what insurance is for. These two products serve completely different purposes, and knowing what each one does (and does not do) saves a lot of frustration after move-in.
Homeowner's Insurance: What It Covers
Homeowner's insurance protects against sudden, accidental damage and loss: fire, storm damage, theft, liability if someone is hurt on your property. Your lender requires it before closing because the home is collateral for the loan.
In Arizona, pay attention to what is and is not covered for roof damage, especially wind and hail. Also check whether the policy covers full replacement cost or actual cash value (depreciated). Policies and premiums vary significantly, so shop at least two or three carriers.
Home Warranty: What It Covers
A home warranty is a service contract that covers repair or replacement of mechanical systems and appliances that fail due to normal wear and tear. Typical coverage includes HVAC, plumbing, electrical, water heater, and kitchen appliances, depending on the plan.
What is not covered: pre-existing conditions, items that were not properly maintained, and anything specifically excluded in the contract. Read the exclusions. Some warranty companies have extensive lists of what they will not pay for.
Questions as you read? Ask me right here.
Leave your name and email and I will answer it directly.
By submitting you agree to receive emails about your Arizona home search. See our privacy policy.
Prefer to talk now? Call or text (623) 826-0888. You reach me, not a call center. No spam, cancel anytime.
When Seller-Paid Warranties Come Up
It is common in Arizona transactions for the buyer to request a home warranty as part of the BINSR or offer negotiation. Sellers who do not want to deal with repair requests sometimes offer to purchase a warranty instead.
If you receive a seller-paid warranty, understand what plan tier it is. A basic plan covering appliances only is not the same as a comprehensive plan covering HVAC and all major systems. In Arizona's climate, HVAC coverage is particularly important -- the average summer puts real stress on air conditioning equipment.
Title Insurance: The Third Protection Layer
Title insurance protects against ownership and lien issues discovered after closing -- things like undisclosed heirs, forged deeds, unpaid contractor liens, or recording errors in the public record. There are two types: a lender's policy (required by your mortgage lender) and an owner's policy (protects you).
In Arizona, it is common for the seller to pay for the owner's title policy as part of the closing cost allocation. Always confirm an owner's policy is part of your transaction. It is a one-time premium paid at closing that covers you for as long as you own the property.
Live MLS search
See what is on the market in the Valley
Search live ARMLS listings in the Valley with the full map and filters, or tell me your criteria and I will set up automatic alerts so new matches reach you the moment they hit the market.
Written by
Jon Hegreness
REALTOR / Associate Broker, Howe Realty. AZ License BR540940000. 24 years in Phoenix Valley residential real estate.
I am a full-time Valley associate broker, not a call center. If anything here raised a question about your own move, ask me and you get a straight answer from the person who wrote this, every time.
Common questions
- Does a home warranty cover roof repairs?
- Generally no. Home warranties cover mechanical systems and appliances. Roof damage is a homeowner's insurance matter. Some premium warranty plans include a limited roof leak rider, but read those terms carefully -- the coverage is usually narrow.
- Is a home warranty worth buying in Arizona?
- It depends on the age of the home's systems and your risk tolerance. In Arizona's heat, HVAC failure is the most expensive common claim. A warranty that covers HVAC can pay for itself quickly if the system fails. Evaluate the plan terms, not just the annual cost.
- Do I need an owner's title insurance policy?
- It is not legally required, but I strongly recommend it. A lender's policy protects the bank, not you. An owner's policy protects your equity. It is a one-time cost at closing and covers you for the entire time you own the property.
- Can I shop for my own homeowner's insurance in Arizona?
- Yes, and you should. Your lender may have preferred vendors but cannot require you to use them. Shop at least two or three carriers, compare coverage limits and deductibles, and factor in the Arizona-specific risks that matter in your area.
More guides in the Learn library.