Is Home Warranty Actually Worth It?

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Home warranties offer peace of mind and financial security; however, before investing in one it’s essential to research its provider thoroughly based on reputation and fine print.

It may not make financial sense to purchase a home warranty if you move into a brand-new home with brand-new appliances that are covered under warranty, or have enough emergency savings available for repairs.

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Peace of Mind

Home warranty companies are an invaluable resource for people without the time or skills necessary to deal with malfunctioning appliances or systems on their own. Before buying one, homeowners should carefully assess their home’s age and condition as well as premiums and service fees before making their decision. To find the most cost-effective warranty option.

Home warranties can also make an appealing selling incentive for sellers of their homes, providing buyers with peace of mind about the state of appliances and systems in your home. Be sure to choose a provider with excellent coverage limits and customer service as well as read through any fine print before signing any policy agreements.


New homeowners may balk at the initial cost of home warranties; however, when compared with anticipated repairs or replacement costs for appliances and systems in their new homes, such warranties could prove worthwhile.

But the I-Team has discovered that not all home warranty companies are equal; some can leave consumers in the cold if their furnace or dishwasher breaks down.

Before choosing a home warranty company, make sure it has an excellent reputation with local consumer agencies and online reviews. When reading its service contract, read carefully so that you understand exactly what is covered as well as any limitations or exceptions. Also inquire about add-on services like roof leak repair and electronic protection plans from American Home Shield – some even provide additional savings like pool/inground spa protection plans and septic pumps!


Home warranties provide homeowners with peace of mind knowing that should an appliance or system break down, it won’t wreak havoc with their budget. Although home warranties cost more than other methods of protecting yourself from financial costs, millions still find them worthwhile.

When selecting a home warranty company, it’s essential to evaluate coverage, costs and service providers carefully. Transparency and ease of claims submission play an integral role in rating providers; consumer reviews as well as websites of your state attorney general or Better Business Bureau may provide helpful insight.

Home warranties can be an invaluable aid for both first-time buyers and sellers, helping cover repairs necessary for maintaining good condition in their houses, while sellers can use them during listing as a selling point. They won’t cover acts of nature or homeowner negligence, so homeowners must always be mindful of its limitations before purchasing one. Comparing providers and reading sample contracts will help determine whether this warranty suits your needs best.


When purchasing a home warranty, it’s essential to carefully read through and comprehend its provisions and coverage. Keep in mind that this doesn’t replace homeowners insurance – which protects possessions from fire, weather-related damage and structural issues – while home warranties cover unexpected failures of systems and appliances due to normal wear and tear.

Note that most new home systems and appliances come with manufacturer warranties that cover them for an agreed-upon period. Therefore, in these instances a home warranty might not make economic sense as most come with claim caps and deductibles which make them less than worthwhile in certain instances. But if you’re buying an older home with little emergency savings set aside then purchasing one might be worthwhile.