Posted by Buying a home is exciting until the furnace quits in the middle of winter, or the dishwasher suddenly sounds like a jet engine. That’s when you start wondering: Should I have gotten a home warranty?
I remember moving into my first house, thrilled but clueless about home maintenance. A year later, my AC died on the hottest day of summer. The repair bill? A cool $1,200. Unexpected home repairs can drain your savings fast, which is why many homeowners consider warranties as a backup plan. After that, I seriously considered whether a home warranty would’ve saved me money and sanity.
What Exactly Is a Home Warranty?
A home warranty isn’t the same as homeowners insurance. Insurance covers damage from disasters like fires or storms, while a home warranty helps when appliances or systems think HVAC, plumbing, or your fridge break down from normal wear and tear.
It’s basically a service contract where you pay an annual fee usually $300–$600 plus a service call fee $50–$125 per visit, and the warranty company covers repairs or replacements. Sounds great, right? Well, it depends.
When a Home Warranty Makes Sense
If your home has older appliances or systems, a warranty can be a lifesaver. My neighbor bought a charming 20-year-old house, only to have the water heater fail within months. Her warranty covered a replacement, saving her nearly $800.
First-time homeowners like me might also benefit. When you’re new to homeownership, unexpected repairs can blindside you. A warranty gives predictable costs instead of sudden financial shocks.
When You Might Skip It
Newer homes with recent appliances? Probably not worth it. Most manufacturers offer warranties, and newer systems are less likely to fail. Plus, if you’re handy unlike me I can barely change a light bulb, you might handle minor repairs yourself.
Another catch? Coverage isn’t unlimited. If your fridge was already on its last legs when you bought the warranty, don’t expect a free replacement. Always read the fine print.
How to Decide If You Need One
Ask yourself:
How old are my appliances and systems?
Could I afford a $1,000 repair tomorrow?
Am I willing to deal with service call hassles?
If you’re buying a home, try negotiating a warranty into the deal. Sellers sometimes include one to sweeten the offer free coverage for you!
Final Thoughts
A home warranty isn’t for everyone, but for some, it’s a financial safety net. Weigh the costs, check reviews on providers, and consider your home’s condition. And if you do get one? Read that contract carefully because nothing’s worse than thinking you’re covered only to find out you’re not.
Have you had a good or bad experience with a home warranty? I’d love to hear your story!
References
U.S. Department of Housing and Urban Development. “Home Warranties: What Homeowners Need to Know”
National Association of Realtors. “Understanding Home Warranties”
Consumer Financial Protection Bureau. “Home Warranty Guide”
Insurance Information Institute. “Home Warranty Basics”