Guide to Buying Home Warranties

Complete Guide to Buying Home Warranties: Is It Worth It?

Buying home warranties can be frustrating because you want to be covered but you don't want to overdo it. This guide should help you know exactly what you need.

What Does a Home Warranty Cover?

Usually, home warranties will cover electrical, plumbing and HVAC systems. They'll also cover common home appliances such as washer, dryer, oven, stove, and garbage disposal. You can also look into adding additional coverage for other areas of your home.

The Advantages of Buying Home Warranties

There are a number of advantages to consider when deciding whether or not a home warranty is for you. These advantages include:


It's likely when you move to a new home, you'll be lost searching for the right contractors. You wouldn't have had the time to establish relationships. With a home warranty, you don't need to worry about that. They'll send a contractor your way for any repairs you'll need. 

Money Savings

A home warranty could also save you a considerable amount of money. If your repairs add up to more than the cost of the warranty, it'll more than pay for itself.

Should I Buy a Warranty on My Older Home?

If you are buying an older home, you're inheriting all the home's maintenance. This includes anything the previous owners haven't done. Make sure there is a home warranty included in the sale of the house to cover you for anything an inspection didn't find. 

If you're currently living in an older home, you probably know about the woes of older appliances. They reach the end of their lifespan, sometimes quicker than you'd think. A home warranty will help you when those appliances eventually fail.

Keep in mind, the age of your house doesn't matter. A home warranty will cover the appliances in any home.

Should I Buy a Home Warranty on my New Construction Home?

If you're buying a home that has brand new construction, chances are you'll have a builder's warranty. That doesn't mean you're clear of any appliance failure, though.

As stated above, appliances can go at any time. Getting a home warranty can extend the builder's warranty out a few years after the purchase date. 

Who Can Buy a Home Warranty? 

Not sure if you're even eligible to buy a home warranty? Here is a list of exactly who has the option: 

The Seller

Buying a home warranty is an added selling point for the property.

The Buyer

You can purchase a home warranty as another layer of protection. 

Current Homeowner

Do you currently own a home? You can buy a home warranty at any time no matter how old the house is.

Real Estate Agent

Sometimes, a real estate agent may buy a home warranty as a gift to the buyers.

The Title Company

They use funds from the home sale to purchase the warranty.


A home warranty's annual cost will be anywhere between $350-$600. The price is determined by:

  • Extent of coverage
  • Type of Plan
  • Additional benefits
  • Home size

Depending on the company you choose, you may also have a service fee of $60-$100.

Is It Worth It?

Buying home warranties can save you money, no matter what home you have. Remember, appliances can fail at any time. Protection against that failure will put you at ease when it happens.

If you're looking into buying your own home warranty, we suggest starting with our free quote today. 

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