Should You Consider Getting a Home Warranty?

As a homeowner, unexpected repairs are part of the deal — and they can get expensive fast.

That’s why many people consider purchasing a home warranty — a service contract that helps cover repair or replacement costs for key systems and appliances in your home.

But is a home warranty worth it? And how is it different from homeowners insurance?

Here’s what you need to know before deciding if a home warranty is right for you.

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What Is a Home Warranty?

A home warranty is a service contract that covers the cost of repairing or replacing certain major systems or appliances when they break due to normal wear and tear.

It’s not the same as homeowners insurance or a manufacturer’s warranty.

Here’s how it differs:

• Homeowners insurance covers damage due to unexpected events like fire, flooding, or theft.
• Manufacturer warranties cover defects in parts or workmanship for new items.
• Home warranties typically cover repairs to systems/appliances once the manufacturer warranty expires — but only for standard wear and tear.

For example:

• If your refrigerator compressor dies unexpectedly, a home warranty may cover the repair.
• If a pipe bursts and floods your kitchen, homeowners insurance would step in to cover the damage.

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What Does a Home Warranty Typically Cover?

Most standard home warranty plans cover the following:

• Heating & air conditioning systems (HVAC)
• Plumbing systems
• Electrical systems
• Water heater
• Built-in kitchen appliances (e.g., stove, dishwasher, built-in microwave)
• Washer and dryer (varies by plan)

Optional add-ons (at an additional cost) may include:

• Pool/spa equipment
• Second refrigerator or standalone freezer
• Well pump or septic system

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How Much Does a Home Warranty Cost?

• Average annual cost: $500–$700
• Service fee/deductible per claim: $75–$125 (varies by provider)

This cost structure is typically more affordable than an unexpected $2,000 HVAC repair — especially for new homeowners without an emergency savings fund for repairs.

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Who Can Purchase a Home Warranty?

Originally, home warranties were offered only during a home sale or closing. Now, many companies allow existing homeowners to purchase a warranty at any time — even if you’ve lived in your home for years.

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Pros and Cons of a Home Warranty

✅ Pros

• Peace of mind against surprise breakdowns
• May save money on major repairs or replacements
• Simple repair process (one call to the warranty company)
• Great for first-time homeowners or older homes

⚠️ Cons

• Doesn’t cover everything (read the fine print carefully)
• May not include full replacements
• Repairs must be handled by the company’s approved contractors
• Coverage may be denied for poor maintenance or pre-existing conditions
• Potential delays in service or limited availability of contractors

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What to Watch Out for Before Buying

• Read the contract carefully — understand what’s covered and what isn’t.
• Check for exclusions (e.g., ice makers, pre-existing conditions, old systems).
• Know what the policy covers: repair vs. replacement.
• Understand service call fees and how claims are processed.
• Be prepared to work with the company’s approved vendors, not your own.

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How Does It Work When Something Breaks?

1. You contact your home warranty company first (not a contractor).
2. The company sends a technician from their network.
3. You pay the service fee at the time of the visit.
4. If approved, the warranty covers repair or replacement.

Important: If you call your own contractor without prior approval, the warranty company likely won’t cover the cost.

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How to Choose a Home Warranty Company

• Look for providers with strong reviews and a solid reputation.
• Check the Better Business Bureau (BBB) for complaints or issues.
• Compare coverage levels, add-on options, and service fees.
• Read the fine print on contract terms, cancellation policies, and exclusions.

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Final Thoughts

A home warranty isn’t for everyone — but for many homeowners, especially those in older homes or without emergency savings, it can be a helpful layer of protection.

If you’re unsure, I’d be happy to help you review different plans or answer any questions about how they work in real life.

Have questions about whether a home warranty is right for you? Just email me — I’m here to help!