Buying a home is one of the biggest financial moves you’ll make. Once the paperwork is signed and the keys are in hand, settling in and protecting your investment is the next step. One of the questions that often arises during this stage is whether to purchase a home warranty. Some buyers see it as an added layer of protection, while others wonder if it’s worth the cost. Knowing what these plans actually cover—and when they make sense—can help you make the right call for your home and your budget.
What Is a Home Warranty?
A home warranty is a service contract that covers the repair or replacement of major systems and appliances in your home. It’s different from homeowners' insurance, which protects against fire, theft, or storm damage. Instead, a home warranty steps in when something inside the home breaks down from regular use, like a dishwasher that stops working or a furnace that needs repair.
These warranties typically last one year and can be renewed annually. They’re often offered during the home-buying process and may be included by the seller as part of the transaction. Others are purchased by the buyer after closing, either through their agent or directly from a warranty provider.
What Do Home Warranties Cover?
Most home warranty plans cover a standard list of items. These may include:
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HVAC systems (heating and air conditioning)
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Electrical systems
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Plumbing
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Water heaters
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Kitchen appliances (refrigerators, ovens, dishwashers)
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Laundry appliances (washers and dryers)
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Garbage disposals and garage door openers
Some plans also offer optional coverage for items like pools, spas, roof leaks, or septic systems. The specific items covered (and the maximum payout per item) can vary between providers, so it’s important to read the fine print before signing up.
Keep in mind that home warranties don’t cover everything. They usually won’t pay for cosmetic damage, pre-existing conditions, or items that have not been properly maintained. If a contractor determines that a system failed due to neglect or improper installation, it may not be eligible for coverage.
How Does It Work?
If a covered item stops working, the process typically goes like this:
- You contact the warranty company and request service.
- They assign a local contractor to evaluate the issue.
- You pay a service fee (usually between $75 and $125) for the technician’s visit.
- If the item is covered, the contractor will repair or replace it based on the warranty’s terms.
The warranty company often decides whether to repair or replace an item. Some plans allow homeowners to choose their own contractors, while others require you to use professionals from their approved network.
The Benefits of a Home Warranty
For many homeowners, the appeal of a home warranty is the added predictability it brings. If something breaks unexpectedly, you won’t have to worry about finding a technician or covering the entire cost out of pocket.
This can be especially valuable during the first year in a new home, when you’re still learning the property's quirks. It also provides peace of mind for buyers who have stretched their budgets during the purchase and may not have extra cash for major repairs.
Home warranties can also help when managing a property from a distance. For second homes or rental properties, having a service plan in place reduces the stress of coordinating repairs remotely.
Do You Need a Home Warranty?
This question doesn’t have a one-size-fits-all answer. It depends on the age of your home, the condition of your systems, your comfort level with unexpected repairs, and your financial cushion. If you’re buying an older home or moving into a property with aging systems, a warranty might be a smart buffer against surprise expenses. If you’ve just bought a move-in-ready home with newer systems, it may not be necessary right away.
Also, consider your own preferences. Some buyers appreciate knowing they have a number to call when something goes wrong. Others prefer to handle issues themselves or work with contractors they’ve used before. Evaluating your habits and priorities will help you decide if a warranty matches your needs.
Do you need a home warranty when selling a home? In some cases, yes. Offering a one-year home warranty can make a listing more appealing to buyers. It adds reassurance, especially for homes with older systems or appliances. Sellers may choose to provide this coverage to help smooth negotiations or stand out in a competitive market.
Tips for Choosing a Home Warranty Provider
If you decide to purchase a warranty, it’s worth doing your homework before choosing a provider. Here are a few tips:
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Compare coverage: Not all warranties cover the same items. Make sure you understand what’s included, what’s excluded, and what optional coverage is available.
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Check the limits: Look at payout caps for each system or appliance. Some warranties may limit coverage for certain items.
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Read customer reviews: Look at how other homeowners rate their experiences. Pay attention to how providers handle claims and customer service issues.
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Ask about service fees: You’ll usually pay a fee each time a technician comes out. Compare these fees across plans to see how they affect your overall cost.
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Review the claims process: Understand how to file a claim and how long service typically takes.
Expert Advice for Every Part of the Process
From warranties to walk-throughs, every step of a home purchase involves choices that affect your long-term experience. Knowing what questions to ask and when to ask them can help you make decisions with more confidence. If you’re buying or selling a home in
Burr Ridge, working with a professional who understands both the market and the details that matter will keep you on solid footing.
Jeff Salhani offers local insight, reliable guidance, and a straightforward approach that makes navigating the real estate process feel less overwhelming and more in control. When it’s time to make your next move, start with a conversation that focuses on what matters to you.
*Header image courtesy of Pexels
