Is Home Warranty Worth it?

Your home is probably your most prized asset, so it’s important to do everything you can to protect it.

A home warranty is an excellent way to safeguard your home and budget by covering the costs of repairs or replacements for many of your home’s major mechanical systems and appliances.

But is a home warranty worth the cost? Keep reading to know about home warranties, what they cover, and whether or not you should consider buying one for your home.


What Exactly Is A Home Warranty?

A home warranty is something that offers reduced maintenance and replacement services for home appliances and systems included under the policy.

The terms of the agreement might vary, and the coverage is determined by the kind of warranty that is purchased.

You should know the difference between a home warranty and home insurance since a home warranty does not offer the same degree of protection that homeowners insurance offers.

The average cost of a home warranty is around $300 to $500 per year, with some companies offering coverage for as low as $200 per year.

On the other hand, homeowners insurance will cost you twice or thrice the price of a home warranty, depending on where you live and the value of your home.

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Is Getting a Home Warranty Worth It?

Since you never know when your house’s systems or appliances will break, a home warranty is well worth the money.

This type of home protection plan will give you peace of mind if a large household item breaks down, and it will save you time looking for a reputable contractor in your area to make repairs.

A house warranty may not be necessary if you’re buying a newly built home because your house will be furnished with brand-new smart appliances secured by a manufacturer’s warranty.

A manufacturer’s warranty covers appliances if they fail due to faulty materials or manufacturing.

Manufacturers’ warranties are often only good for a year or two and don’t include equipment and appliances that stop working due to regular wear and use.

Once the manufacturer’s warranty has expired, it would be a good idea to buy a home warranty.

What Are The Pros And Cons Of A Home Warranty?

Now that you know what a house warranty is, how much it costs, and whether getting one is worth it, ​​let’s take a look at the pros and cons of having a home warranty.


  • You’ll have peace of mind knowing that your home’s appliances and systems are covered in case they break down.
  • You can save money on costly replacements or repairs.
  • You won’t have to spend time looking for a reputable contractor to make repairs.
  • Your home will seem like a better deal to buyers if you have a home warranty in place.
  • Most home warranty companies offer 24/7 customer service.


  • Home warranties come with a lot of fine print, so you’ll need to carefully review this policy to determine what is covered and what isn’t.
  • There may be a service fee or deductible that you have to pay when you make a claim.
  • You may be required to use a specific contractor or repair company affiliated with the home warranty company.

Bottom Line

A home warranty is well worth the money if you want to safeguard your home and budget against expensive repairs or replacements.

So make it a point to carefully read the fine print, understand what is and isn’t covered, and compare different home warranty companies to find the best coverage for your needs.

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