Is Getting a Home Warranty Worth It?

It’s no secret that buying a home comes with many costs. At some point, you may have come across home warranties, which are contracts or policies that provide some coverage to various repair and maintenance services. According to ConsumerAffairs, you can expect to pay around $50 a month for good home warranty coverage.1

This homeownership month, we’ll be covering home warranties and whether we believe they are worth buying. You’ll learn about what some home warranties do and don’t cover and their advantages and disadvantages. 

What Does A Home Warranty Cover? 

Home warranties may not cover all your major household appliances. You’ll need to double-check the service contract to see what is and isn’t covered. Usually, home warranties do not cover components such as sprinkler systems, hot tubs, and windows. Below is a list of the most common covered household components by home warranties: 

  • HVAC Systems
  • Drain
  • Furnace
  • Plumbing (including water heater and toilets)
  • Leaks
  • Swimming pool
  • Sinks
  • Garbage Disposals

Home Warranty is it worth it

Is a Home Warranty Worth It? Pros and Cons 

Home warranties are generally worth the cost if you need coverage for unexpected repairs or breakdowns such as roof leakages or plumbing issues.


  • Relatively Inexpensive: According to Home Warranty of America, the standard price for home warranties range from $350 to $600 per year.2 However, keep in mind that each house call costs a service fee that can cost up to $100 per visit. 
  • Convenience: You don’t have to hunt down local contractors when you need a repair. 
  • Discounted services and repairs: You may only have to worry about paying the service fee if a covered appliance or component needs to be repaired or replaced.  



  • Partial Coverage: Home warranties do not cover all types of damages to appliances and major issues. Roof replacements, neglect, or structural repairs are typically not covered. 
  • Capped claims: There is generally a liability cap for repair and replacement costs. 
  • No control: You normally will not get a say in the contractors that home warranty companies send. You also may not get to choose the new replacements for broken items. 
  • Time: The contracts may not come as fast as if you hired them yourself and the claims may take a few business days to get approved.


A home warranty is not a major necessity for homeowners. However, it can give peace of mind if you received it as part of your new home purchase. If you do decide to purchase a home warranty, do your due diligence. Research the reputation of each company, compare prices of how much repairs will cost you without a warranty, and check the conditions of your appliances and components before making a decision. 

  1. 2021 Home Warranty Costs | ConsumerAffairs
  2. Home Warranty Costs & Coverage | Home Warranty of America (