Everything You Should Know About Home Warranties
March 28, 2025
Buying a home is one of the biggest investments you’ll ever make, and protecting that investment should be a top priority. A home warranty is one way to ensure your appliances and home systems are covered in case of unexpected breakdowns. But what exactly is a home warranty, how does it work, and is it worth the cost?
In this article, we’ll break down everything you need to know about home warranties, helping you decide if they’re the right choice for your home.
1. What Is a Home Warranty?
A home warranty is a service contract that covers the repair or replacement of major home systems and appliances due to normal wear and tear. Unlike homeowners insurance, which covers damages from disasters like fire or theft, a home warranty helps protect against costly repairs from everyday use.
What Does a Home Warranty Typically Cover?
Major home systems – HVAC, plumbing, electrical, and water heaters
Kitchen appliances – Refrigerator, oven, dishwasher, and microwave
Laundry appliances – Washer and dryer
Other home essentials – Garage door openers, ceiling fans, and more
However, coverage varies by provider, and some plans may have limitations. Learn more about why home warranty companies have coverage limits and what to watch out for when selecting a plan.
2. How Do Home Warranties Work?
The process is simple and hassle-free:
1️⃣ Purchase a home warranty plan – Choose a provider and a plan that fits your needs.
2️⃣ File a claim when something breaks – If a covered system or appliance fails, you contact your warranty provider.
3️⃣ A service technician is dispatched – The warranty company sends a licensed contractor to diagnose and fix the issue.
4️⃣ Pay a service fee – While the repair is covered, you may have to pay a small service fee (typically $75–$125 per visit).
5️⃣ Repair or replacement – If the item cannot be repaired, the provider may replace it.
3. Why You Need a Home Warranty
Still unsure if a home warranty is worth it? Here are some key reasons to consider one:
🛠️ Save Money on Repairs & Replacements
A home warranty reduces out-of-pocket costs for major repairs or appliance replacements. HVAC repairs alone can cost $300–$5,000, making a warranty a smart financial safety net.
📅 Extend the Lifespan of Home Systems
Regular wear and tear is inevitable, but a warranty ensures proper maintenance and timely repairs, keeping your home running smoothly.
🚪 Increase Home Value & Attract Buyers
If you’re selling your home, offering a home warranty can make your property more appealing to buyers, as it provides them peace of mind.
😌 Peace of Mind for Homeowners
A home warranty eliminates the stress of unexpected breakdowns, so you’re never caught off guard with high repair costs.
💡 Still wondering if home warranties are worth it? Check out this in-depth analysis on whether a home warranty is a smart investment.
4. Are Home Warranties Worth It for You?
A home warranty is an excellent investment for many homeowners, but it’s especially beneficial if:
You have older appliances and home systems that are more likely to break down.
You don’t have an emergency fund for unexpected repairs.
You’re a first-time homeowner unfamiliar with maintenance costs.
You want added protection when buying or selling a home.
Final Thoughts: Protect Your Home Today!
A home warranty is a valuable tool to protect your home and save money on costly repairs. Whether you’re a new homeowner, a seller, or simply looking for added peace of mind, investing in a warranty can be a smart financial move.