Pros and Cons of Home Warranties – Making the Right Decision

Pros and Cons of Home Warranties – Making the Right Decision

March 3, 2023

Home warranties are becoming increasingly popular among homeowners, especially those who have recently purchased a new home. They offer peace of mind by providing coverage for the home repair or replacement of major home appliances and systems. However, like any financial decision, there are pros and cons to consider before making a purchase. In this article, we’ll explore the pros and cons of home warranties, so you can make an informed decision for your home.

Pros and Cons Of Home Warranties

Pros of Home Warranties

  1. Financial protection: A home warranty can protect you from unexpected expenses when appliances or systems break down. Instead of paying hundreds or thousands of dollars out of pocket, you’ll only need to pay a service fee to the warranty company.
  2. Convenience: With a home warranty, you don’t need to spend time searching for a reputable contractor or scheduling repairs. The warranty company will take care of it for you.
  3. Peace of mind: Knowing that your home appliances and systems are covered by a warranty can give you peace of mind and reduce stress.
  4. Transferable: If you decide to sell your home, you can transfer the warranty to the new owner, making your home more attractive to potential buyers.

Also Read: What’s Not Covered By Standard Home Insurance

Cons of Home Warranties

  1. Cost: Home warranties can be expensive, and the cost may not be worth it if you don’t end up using the warranty.
  2. Limited coverage: Most home warranties only cover major appliances and systems, leaving out smaller items like doorbells, garage door openers, and faucets.
  3. Fine print: Like any contract, home warranties come with terms and conditions that you need to read carefully. Some warranties have exclusions, limitations, and deductibles that can make it difficult to make a claim.
  4. Limited contractors: With a home warranty, you’ll need to use the warranty company’s approved contractors, which may not be the most reputable or qualified in your area.

Making the Right Decision

When deciding whether to purchase a home warranty, consider the age and condition of your appliances and systems, as well as your budget and level of risk tolerance. If you have older appliances or systems that are more likely to break down, a home warranty may be a good investment. However, if your appliances are newer or still under warranty, you may not need the additional coverage.

It’s also important to do your research before choosing a home warranty provider. Look for companies with good reviews and ratings, and read the terms and conditions carefully to make sure you understand what’s covered and what’s not.

Ultimately, the decision to purchase a home warranty is a personal one that depends on your individual circumstances. By weighing the pros and cons and doing your due diligence, you can make an informed decision that’s right for your home and budget.


In conclusion, home warranties can provide valuable peace of mind and financial protection for homeowners, but they also come with limitations and costs. Before purchasing a home warranty, consider your specific needs and budget, and research different providers to find the best fit for your home.

Interested in a warranty to protect your home and belongings?

home warranty plan