What Does a Home Warranty Typically Cover?
Basic plans typically cover major systems: heating, air conditioning, plumbing, electrical, and water heater. Enhanced plans add appliances: refrigerator, oven, dishwasher, washer, and dryer. Optional add-ons may include a pool, spa, second refrigerator, or well pump. Coverage has limits — read the fine print for dollar caps per repair, excluded components (rust, pre-existing conditions, improper installation), and service call fees.
How Do Home Warranties Work When Something Breaks?
When a covered item fails, you contact the warranty company, pay a service call fee ($75 to $125 per visit), and the company dispatches a technician. If the item is covered, repairs or replacement are handled at no additional cost up to the plan's limits. You don't choose your own contractor — the warranty company selects from their network. Response times and contractor quality vary significantly by provider.
Is a Home Warranty Worth the Cost?
Home warranties typically cost $300 to $700 per year. Whether they're worth it depends on the age and condition of your systems and appliances, your risk tolerance, and your ability to cover surprise repair costs. Newer homes with modern systems may rarely need claims. Older homes with aging HVAC and appliances may get good value from a warranty. Read reviews carefully — claim approval rates and service quality vary widely among providers.
Frequently asked questions
Is a home warranty the same as homeowners insurance?
No. Homeowners insurance covers sudden damage from covered perils like fire, wind, and theft. A home warranty covers mechanical breakdown of systems and appliances from normal wear. Both can be valuable, but they serve entirely different purposes and are purchased separately.
Can a seller offer a home warranty as part of a sale?
Yes. Sellers commonly offer a one-year home warranty as a concession during negotiations, typically costing $300 to $500. It provides buyers peace of mind against breakdowns in the first year of ownership and can make a home more competitive to sell.