You live in a home you’ve loved for 30 years. Your air conditioner is 15 years old, and your water heater is pushing 12. You buy a home warranty to protect yourself from the inevitable breakdown.
But when the AC finally quits, the warranty company denies your claim. Their reason? “Pre-Existing Condition.”
This is the nightmare scenario for many seniors. It feels like a scam. You paid your premiums, but when you needed help, they pointed to fine print you didn’t understand.
As your trusted advocate, we are here to explain exactly what this clause means, the difference between “Known” and “Unknown” conditions, and how you can protect yourself to ensure your older appliances are actually covered.
Key Takeaways
- The Golden Rule: Warranties cover future breakdowns, not current broken items. If it’s already broken, fix it before you buy.
- The “Unknown” Loophole: Top-tier companies (like American Home Shield) cover conditions you could not have known about (like rust inside a pipe), even if the damage started years ago.
- The 30-Day Wait: Coverage usually doesn’t start until 30 days after purchase. If it breaks on Day 29, it is considered pre-existing and will be denied.
- Maintenance Matters: Keeping simple records (receipts for filters, tune-ups) is your best defense against a denial based on “neglect.”
"Known" vs. "Unknown": The Difference that Pays
Not all pre-existing conditions are treated equally. The best home warranty companies differentiate between what you knew was broken (negligence) and what was secretly failing (bad luck). Understanding this distinction is the key to getting your claim paid.
- Known Conditions (Never Covered) These are defects that would be obvious to a layperson without special tools.
- Definition: A visual or mechanical defect that a normal person would notice during a routine inspection.
- Examples: A visible leak under the sink you put a bucket under; an AC unit that rattles loudly and hasn’t cooled in months; a stove burner that hasn’t lit in years.
- The Verdict: If you call for service on these immediately after buying a plan, the technician will report that the damage is old/obvious, and the claim will be denied. Fix these items before you buy the warranty.
- Unknown Conditions (Often Covered) These are the hidden failures that happen deep inside a machine or wall.
- Definition: A defect that was not visible or detectable without opening the unit, even if the wear and tear started years ago.
- Examples: Sediment buildup inside a water heater tank; a frayed wire inside a wall; a compressor failing due to internal rust or metal fatigue.
- The Verdict: Companies like American Home Shield and Cinch explicitly cover these “unknown” issues. As long as the unit turned on and worked when you bought the plan, the internal age-related failure is covered.
The "Simple Test" Strategy
How do you prove an item was working? Before you buy a policy, perform this simple test on every major appliance. If it passes, you are generally safe to insure it.
- Turn it on: Does it start immediately without hesitation?
- Run a full cycle: Does the dishwasher fill and drain? Does the AC reach the set temperature on the thermostat within an hour?
- Check for leaks/noises: Is there water on the floor? Is there banging or grinding?
If it passes this test, it is considered “in good working order.” Any failure after your 30-day waiting period should be covered as a new breakdown.
Buying a Retirement Home? Your Secret Weapon
If you are downsizing and buying a new home, you have the ultimate proof: The Home Inspection Report.
- The Strategy: When you buy a home, the inspector tests every appliance. If their report marks the AC unit as “Satisfactory” or “Functional,” keep that document forever.
- The Defense: If a warranty company tries to deny a claim 3 months later saying, “This unit was already broken,” you can send them the inspection report dated just before your policy started. It is nearly impossible for them to argue with a licensed inspector’s report.
The "Right Words" to Use: How to Avoid Accidental Denial
When you file a claim, the intake agent will ask, “When did the problem start?” Your answer matters. Seniors often try to be helpful by giving too much history, which can backfire.
- The Wrong Way: “Oh, it’s been making a funny noise for six months, but it finally died yesterday.”
- Result: Denied. You admitted the problem existed before the current failure or waiting period.
- The Right Way: “It was working fine until yesterday, when it suddenly stopped cooling.”
- Result: Approved. This describes a sudden, new mechanical failure, which is exactly what warranties cover.
- The Rule: Be honest, but focus on the current breakdown, not the history of every noise the machine has ever made.
Why Maintenance Records are Your "Get Out of Jail Free" Card
Sometimes, a warranty company will deny a claim by saying the unit wasn’t “properly maintained.” This is common with HVAC systems.
- The Scenario: Your AC dies. The technician sees dirty coils and reports, “Denied for lack of maintenance.”
- The Defense: If you can produce a receipt showing you had the AC tuned up last year, or even receipts for buying air filters every 3 months, you can fight that denial.
- Action Step: Create a “House File.” Toss every receipt for filters, fluids, and repairs into it. This is your proof of coverage.
Top Picks: Companies That Cover "Pre-Existing" Issues
If you have an older home, you need a company with lenient policies. We recommend these providers for their specific stance on older systems.
Quick Comparison: Best for Older Homes
|
Company
|
Sagewise Rating
|
Pre-Existing Policy
|
Best For
|
|---|---|---|---|
|
American Home Shield
|
5.0 / 5.0
|
Covers rust, corrosion, & age
|
Older Homes
|
|
Cinch Home Services
|
4.0 / 5.0
|
Covers "unknown" conditions
|
Transparency
|
|
First American
|
4.5 / 5.0
|
Covers improper install/code
|
HVAC Systems
|
- Best Overall: American Home Shield (AHS) Sagewise Rating: 5.0
- Why: They famously cover rust, corrosion, and sediment. Most companies deny these as “pre-existing” or “maintenance” issues, but AHS accepts them as normal wear and tear on older homes. They also have no age limit on appliances.
- Best for Transparency: Cinch Home Services Sagewise Rating: 4.0
- Why: They have one of the clearest policies stating they cover “unknown pre-existing conditions.” If you didn’t know it was broken, they fix it. This removes the anxiety of hidden defects.
- Best for HVAC: First American Home Warranty Sagewise Rating: 4.5
- Why: Their Premier plan has high limits and covers “improper installation” or “code violations” from previous repairs. This is huge for seniors living in homes that may have had “DIY” repairs done by previous owners.
Your "Pre-Enrollment" Inspection Checklist
Use this checklist before you pay your first premium to ensure you won’t face a denial later.
- HVAC: Does the AC blow cold air (20 degrees cooler than intake)? Does the furnace blow hot?
- Plumbing: Turn on all faucets. Is the pressure good? Do drains empty quickly? Are there any stains under the sinks?
- Electrical: Do all light switches work? Do GFCIs (outlet buttons) test and reset correctly?
- Appliances: Does the ice maker make ice? Does the oven bake evenly?
If you find a “No”: Call a handyman to fix that specific item before your warranty starts. It is cheaper to fix a small leak now than to have a major claim denied later.
Frequently Asked Questions (FAQ)
For the best companies (like those listed above), no. They cover systems regardless of age. However, “bargain” companies often have age limits (e.g., “no units over 15 years”). Always check the fine print for an “age exclusion.”
Generally, no. Unlike buying a house, buying a warranty doesn’t require a professional inspection. However, getting a simple HVAC tune-up ($80) gives you a “clean bill of health” document that effectively proves the system was working, making it impossible for them to deny a pre-existing claim later.
Appeal it. Ask for the technician’s report. If the technician said “wear and tear” but the adjuster said “pre-existing,” you can use the report to fight back. You can also request a second opinion from a different contractor.
Many companies do deny for rust. This is why we recommend American Home Shield, as they are one of the few that explicitly covers failures caused by rust and corrosion.
Yes, almost universally. This is to prevent fraud (people buying insurance only after something breaks). However, if you are switching from one warranty company to another, some providers will waive the waiting period if you can show proof of prior continuous coverage.
Get A Free Home Warranty Quote (Find a plan that covers your older appliances today.)
