Do You Need a Home Warranty?

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Do You Need a Home Warranty?

What is a Home Warranty?

A home warranty is a service contract that pays the cost of repair or replacement of covered items, such as major kitchen appliances, as well as electrical, plumbing, heating, and air conditioning systems. A home warranty shouldn’t be confused with a homeowners insurance policy.

How it Works

Every year that you want to be covered under the warranty, you pay an annual premium which can range anywhere from a few hundred to a thousand dollars, depending on the size of your home.

When something in your home breaks down, you pay a deductible that can vary, according to the terms of your warranty. However, it usually falls between $50-$125. The warranty company will then send out a service company to make the necessary repairs or replacements if needed.


  • Peace of mind
  • Big savings on common repairs
  • Discounted service calls
  • Great for those that are not handy
  • Helps new homeowners that are unfamiliar with their new home’s systems
  • Fewer unanticipated costs


  • Not everything is covered (it is important to read through the terms of your warranty to see what is excluded)
  • No guarantee of replacement verse repair
  • Most companies give you no choice in service providers (please reach out to me to find out who allows you to pick your own providers)
  • They won’t cover items that have not been “properly maintained”
  • Yearly premiums

How to Decide

Home warranties can help give peace of mind to some of your maintenance concerns, but it’s not entirely fail-safe. Do your research and read over the contract before purchasing a home warranty, so you know what may or may not be covered.

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