Home Warranties

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Real Estate

Should You Buy a Home Warranty? Your Questions, Answered


By: John Dunbar


Owning a home is expensive. You may face major repairs with little or no warning, and they can put an unexpected dent in your budget. Fortunately, a home warranty can take some of the sting out of big expenses.

What Is a Home Warranty?

T-Square Properties notes that normal wear and tear can cause your home systems and appliances to break down. A home warranty is a contract that protects you from paying the high costs of home system or appliance repairs, which is the main reason purchasing a home warranty makes sense. It lasts for a specified period, usually one year.

A home warranty can also help facilitate your replacement or repair and keep you from spending time searching for a local, trusted contractor. If you want peace of mind from worrying about unplanned breakdowns, a home warranty can help.

What Coverage Do You Require?

Not all warranties are alike. Before you purchase one, you must determine what kind of coverage your home and budget require.

Think of the type of appliances and systems you have. Are they older models? Older systems may need parts that are harder to obtain. On the other hand, a home warranty might not cover newer systems under the manufacturer's warranty.

You should also consider how much coverage you want. Are you mainly concerned with covering major appliances, or do you want a broader warranty that includes electrical and plumbing systems? Once you determine the coverage you require, you can narrow your choices.

How Can You Choose Between Providers?

Once you know what you're looking for, you can compare companies and plans. Say, for example, you find two warranties that cover HVAC repairs, but one also pays for seasonal maintenance. If you don't want to pay for a tune-up every six months (and don't want to do it yourself), you may opt for the plan that covers maintenance expenses.

You may find other differences between plans. One home warranty may charge higher service fees, while another might not cover all the types of repairs you want. It's critical to read the terms and conditions of the warranties to understand what you get with each one. When you find an ideal option, you’ll sleep easier knowing that your home systems and appliances are covered.

Who Can Help You Make a Decision?

If you're buying a new home warranty, ask your real estate agent for recommendations. Your agent may know what companies offer the best service.

You can ask family and friends if they have home warranties and if they are pleased with their service. Information from a trusted source can help inform your decision.

It's also good to read online reviews and research a company's reputation before finalizing a home warranty purchase. According to Podium, 93% of internet users have made a purchasing decision based on an online review.

A home warranty can offer peace of mind when you face hefty repair bills. Take time to shop for your best option, and don't hesitate to ask for recommendations.


Kathy Larson Real Estate of Keller Williams Realty has extensive knowledge which helps buyers, sellers and investors reach their unique real estate goals. Team up with Kathy today! 801.205.0792