Condos and Townhomes: What a Home Warranty Covers

Condo and townhome owners share walls, roofs and sometimes mechanical systems with neighbors. That raises a fair question: if the homeowners association handles some repairs, does a home warranty still make sense? The answer depends on what your association covers and what falls to you.

Start with your HOA documents

Before shopping for a home warranty, read your association's governing documents, often called the declaration, CC&Rs or bylaws. They usually spell out:

• Common elements the association maintains, such as the roof, exterior walls, grounds and shared pipes.
• Limited common elements that serve one unit but may be maintained by the association or the owner, such as a balcony or a rooftop AC pad.
• Unit owner responsibilities, typically everything inside your unit's walls.

Rules vary from one community to the next. Townhome associations often leave more to individual owners than condo associations do.

What owners are usually responsible for

In many condos and townhomes, the owner is responsible for systems and appliances that serve only their unit. That commonly includes:

1. Heating and air conditioning equipment serving your unit, including the air handler and sometimes the outdoor unit.
2. Water heater inside your unit.
3. Plumbing fixtures and the pipes within your unit, up to a defined point.
4. Electrical wiring inside your unit, outlets and switches.
5. Kitchen and laundry appliances, such as the refrigerator, dishwasher, oven, washer and dryer.
6. Garbage disposal and built-in microwave.

These are the same kinds of items a home warranty typically covers.

What a home warranty usually covers

Plans for condos and townhomes generally work like plans for single-family homes, sometimes with pricing based on home type or size. Common covered items include:

• Heating and air conditioning systems.
• Water heaters.
• Interior plumbing and electrical systems.
• Kitchen appliances and laundry machines, depending on the plan tier.

Items maintained by the association, such as the roof or shared plumbing stacks, are generally outside what an individual owner's home warranty covers.

Shared systems create gray areas

Condos sometimes use shared or central systems:

• Central boilers or chillers serving the whole building.
• Shared water heaters.
• Common plumbing lines that run through multiple units.

If a problem starts in a shared system, the association typically handles it. If it starts in your unit's equipment, you are usually responsible. A home warranty provider will generally cover only items that serve your unit and that you are responsible for. Ask the provider how they handle shared systems before buying.

Access and building rules

Repairs in multi-unit buildings come with logistics:

• Building access for technicians may require scheduling with management.
• Rooftop or closet equipment may need special access.
• Work hours may be restricted by the association.
• Insurance requirements for contractors may apply in some buildings.

These are not reasons to skip a home warranty, but they can affect how quickly a repair gets done.

When a home warranty makes sense for a condo owner

A plan can be worth considering if:

• Your HVAC equipment and water heater are older.
• You own several appliances that are past their manufacturer warranty.
• You want a predictable process when something breaks.

It may make less sense if the association covers most systems or your appliances are new.

Questions to ask before you buy

• Does the plan cover items that serve only my unit?
• How does the provider handle shared or central systems?
• Are there access or permit costs I would pay?
• What are the caps for HVAC and plumbing?

Check your insurance too. A home warranty is not insurance. In a condo, the association usually carries a master insurance policy for the building, and many owners carry their own policy for the interior of the unit and personal property. Water damage from a burst pipe, for example, is generally an insurance matter, while repairing the failed pipe or appliance may fall under a home warranty. Knowing which policy handles which part of a problem saves time and phone calls when something goes wrong.

How Warranty Wizards can help

We help condo and townhome owners compare home warranty plans from third-party providers and explain what each covers before you buy. Request a free quote at /get-a-quote/.