Things to Consider Before Buying a Home Warranty

5 min read
07 November 2023

Home warranties are often a worthwhile investment, but they can also be costly. Before you purchase one, it is essential to assess your needs carefully. You should collect relevant data, including model numbers and receipts, and evaluate the maintenance history of your appliances and systems. 

Also, make sure to read sample contracts from providers. These will contain information about what is covered, what is not, and actions that void coverage. Do your research to find the best home warranty company there is so that you can avoid scammers and illegitimate companies. 


The cost of a home warranty varies from provider to provider

. The cost includes an annual premium and a service call fee. The contract should clearly outline what's covered, actions that can void the warranty, and caps on service calls and reimbursements. 

Most providers offer a combination plan that covers systems and appliances, or you can choose an a la carte option to cover specific items. In addition to determining what types of coverage you want, it's a good idea to read sample contracts and compare costs. 

If you're a new homeowner, a home warranty can help reassure you that the system or appliance you've purchased is in working order and not about to break down. In addition, it can protect you from making unreasonable demands on a seller to repair a system after the sale. If you have a mortgage, your lender may offer a home warranty as part of the loan. 


Home warranty companies have varying coverage plans. Some have lower service call fees and limits, while others offer more extensive coverage. When choosing a plan, be sure to read the contract and compare costs and coverage options carefully. Also, look for testimonials and online reviews about a company’s customer service. 

A home warranty is a good option for homeowners who want to save money by not paying for repairs out of pocket. 

Before purchasing a home, ask the seller about the appliances and systems to see whether they are still under warranty from the manufacturer or builder. If they are, you should get a copy of the contract and see if you can transfer it to your name. This will ease the stress of buying an older home, and you’ll have peace of mind that your purchase is protected. 

Claims process

The claims process is an important factor to consider when buying a home warranty. Most home warranties have limits on how much they will reimburse you per year and exclusions for different criteria. These can include failure to conduct regular maintenance, manufacturer defects, and inappropriate installations. 

It is also important to read the company’s service contract carefully. Many reputable home warranty companies have standardized appeals processes that they expect their customers to follow. This will help them avoid wasting their customers’ time and money. 

Another important consideration is the company’s local presence. If a company doesn’t have a strong local presence, it may not be able to respond quickly to your claim or provide adequate support. You can also check online reviews to see if the company has a good reputation. Some companies even offer sample contracts for consumers to compare pricing and coverage options. This allows them to determine if the home warranty will be worth it. 


Home warranties are similar to home insurance policies in terms of premiums, deductibles and coverage. However, they are different in that homeowners’ insurance covers damage to the house itself and its contents, while a home warranty is intended to maintain the functionality of household appliances. It is important for homeowners/buyers to find a company with a good reputation that works with reliable contractors and will actually pay when something breaks or wears out. Consumers can learn more about a company’s reputation by reading online reviews and comparing companies that offer residential service contracts in their state. 

Home warranties can provide peace of mind, especially for first-time homebuyers who may not have saved enough money to cover unexpected repair costs. However, it is vital to read the contract closely and compare costs and coverage before deciding whether to buy one. Also, it is important to consider the home warranty company’s local presence and reputation, as many claims will involve a local contractor.

Home warranty plans differ in terms of coverage, protection limits and service fees. As a result, choosing the right plan depends on a homeowner’s specific needs and budget. 

In case you have found a mistake in the text, please send a message to the author by selecting the mistake and pressing Ctrl-Enter.
Alex 9.8K
Joined: 4 years ago
Comments (0)

    No comments yet

You must be logged in to comment.

Sign In / Sign Up