Items listed here are based off a sample contract from an American Home Sheild (AMS) Home Warranty (downloaded at http://www.ahswarranty.com/AHSProductPresentment/HomeshieldProductPresentment.aspx)

G. LIMITATIONS OF LIABILITY

1. The following are not covered for the homeowner for the first 30 days after the Effective
   Date (see Section B): (a) malfunction or improper operation due to rust or corrosion of
   appliances, heating systems (including built-in wall units or heat pumps) and/or air
   conditioning systems/coolers or pools/spas; (b) collapsed ductwork.
2. AHS is not responsible for providing or closing access to covered items except as noted
   in Sections D.1. and D.5.
3. You may be charged an additional fee by the Service Contractor to dispose of an
   old appliance, system or component, including, but not limited to the following
   items: condensing units, evaporator coils, compressors, capacitors, refrigerators,
   freezers, water heaters, and any system or appliance which contains dangerous or
   hazardous materials.
4. AHS is not liable for restoration of any wall coverings, floor coverings, cabinets, counter
   tops, tiling, paint, or the like, nor the repair of any cosmetic defects.
5. AHS is not responsible for electronic or computerized home management systems
   including, but not limited to, energy, lighting, security, appliances, entertainment, comfort or
   audio systems.
6. AHS is not responsible or liable for secondary, incidental and/or consequential loss or
   damage resulting from the malfunction of any covered item including, but not limited to,
   food spoilage, loss of income, utility bills, additional living expenses, personal and/or
   property damage, or authorized contractor’s service or delay in service.
7. AHS is not responsible or liable for any delay in service or failure to provide service
   caused by conditions beyond its control, including, but not limited to, delays in obtaining, or
   shortages of, parts and/or equipment, or labor difficulties.
8. AHS is not responsible or liable for repair of conditions or replacement caused by
   chemical or sedimentary build up, misuse or abuse, failure to clean or maintain, missing
   parts, structural changes, fire, freezing, electrical failure or surge, water damage, lightning,
   mud, earthquake, soil movement, storms, accidents, pet damage, pest damage, acts of
   God, or failure due to excessive or inadequate water pressure.
9. AHS has the sole right to determine whether a covered system or appliance will be
   repaired or replaced. AHS is responsible for installing replacement equipment of similar
   features, capacity, and efficiency, but not for matching dimensions, brand or color. Except
   when repairing or upgrading covered systems to maintain compatibility with equipment
   manufactured to be 13 SEER or 7.7 HSPF compliant, or compliant with any higher SEER or
   HSPF requirements, AHS is not responsible or liable for upgrades, components, parts or
   equipment required due to: (a) the incompatibility of the existing equipment with the
   replacement system or appliance or component or any part thereof; or (b) any new type of
   chemical or material utilized to run the replacement equipment including, but not limited to,
   © 2009 AHS Corporation CAHS10
   differences in technology, refrigerant requirements, or efficiency as mandated by federal,
   state, or local governments. AHS is not responsible or liable for the cost of construction,
   carpentry, or other modifications made necessary by the existing equipment or installing
   different equipment.
10. AHS is not responsible or liable for repairs related to inadequacy, lack of capacity,
    misuse, improper installation, previous repair or design, manufacturer’s defect, and any
    modification to the system or appliance. AHS does not perform routine maintenance. You
    are responsible for providing maintenance and cleaning on covered items as specified by
    the manufacturer to ensure continued coverage on such items. For example: heating and
    air conditioning systems require periodic cleaning and/or replacement of filters and cleaning
    of evaporator and condenser coils. Water heaters require periodic flushing.
11. This contract does not cover appliances or systems deemed or classified by the
    manufacturer as commercial.
12. AHS is not responsible for any repair, replacement, installation, or modification of any
    covered system, appliance, or component or part thereof: (a) that has been, or is,
    determined to be defective by the Consumer Product Safety Commission or the
    manufacturer; (b) that a manufacturer has issued, or issues, a warning or recall; (c) that has
    a malfunction caused by the manufacturer’s improper design, use of improper materials,
    formula, manufacturing process or other manufacturing defect; or (d) while still under an
    existing manufacturer’s, distributor’s, or in-home warranty.
13. AHS reserves the right to provide pre-approved reimbursement of itemized costs or
    cash back in lieu of repair or replacement. Both pre-approved reimbursement of itemized
    costs and cash back in lieu of repair or replacement will be based on what AHS would
    ordinarily expect to pay for the same parts and labor, which may be less than retail or your
    actual cost. Acceptable proof of the repair and your actual itemized costs must be provided
    to and approved by AHS before any reimbursement will be paid.
14. AHS reserves the right to rebuild a part or component, or replace with a rebuilt part or
    component.
15. AHS is not under any circumstances liable for the diagnosis, repair, removal or
    remediation of mold, mildew, bio-organic growth, rot or fungus, or any damages resulting
    from or related to mold, mildew, rot or fungus, even when caused by or related to the
    malfunction, repair or replacement of a covered system or appliance.
16. AHS will not contract to perform service nor pay costs involving hazardous or toxic
    materials including, but not limited to, asbestos, mold, lead paint, and sanitation of sewage
    spills, nor will it pay costs related to recapture or disposal of refrigerants, contaminants,
    hazardous, or toxic materials. AHS will only pay costs related to freon recapture if it is
    part of your coverage plan.
17. This contract does not cover fees associated with use of cranes needed to install or
    remove any equipment located on the roof top.
18. AHS is not responsible for like-for-like replacement of appliances if the appliance
    contains any features that do not contribute to the appliance's primary function including,
    without limitation, TVs or radios in refrigerators.

No damages due to water related issues stemming from roof, gutter or drainage issues are covered.  They consider these issues as arising outside of the foundation, even if the water enters inside the foundation.

!!Caveat Emptor!!