3 Things You Need To Know Before You Purchase A Home Warranty

If you buy a house, even if it is not new, there is a high possibility that you will be provided with a home warranty as your safety net against unexpected costly repairs. It might sound like a fantastic form of financial protection, but is it the safety net needed by homeowners?

When you purchase a house, home warranties also come up for you to have peace of mind that every part of your house would be fixed cheaply and efficiently. The seller can offer to buy one on your behalf; otherwise, you will certainly receive multiple mail requests to acquire a home warranty after the deal closes. Let’s figure out if your home warranty is worth it.

How Much A Home Warranty Cost?

If the warranty company has a payment method, a home warranty costs several hundred dollars annually, through installments or paid up-front. The plan’s cost depends on the type of property, such as duplex, townhouse, condo, detached single-family, and whether the homeowner can also purchase an extended plan.

Typically, the cost does not change with the property’s age, only if the house is new, which raises the coverage cost. In most cases, the house’s square footage usually doesn’t change the worth only if the land will be more than 5,000 sq ft.

The basic policy typically does not include distinct structures, such as guest houses, but may be covered for an added charge. However, as a standard feature of a warranty, garages should be included.

The call fee is an addition to an annual payment, which is often called a trade call fee of about $75 to $125 when the warranty holder asks a service provider to go to the house to inspect an issue.

Suppose the issue involves an electrician or a plumber to visit over one service type. For example, the homeowner will need to pay the service charge for both. Getting a home warranty does not imply that the homeowner would never have to spend a dime on repairs for the house.

The warranty would not cover some issues, either because the homeowner did not buy coverage for that service or the warranty agency does not provide coverage for that issue.

Often, home warranties typically do not include components that have not been appropriately maintained. If the warranty provider refuses a complaint, the homeowner will have to pay the service charge and still be responsible for repairs.

What Are The Advantages of a Home Warranty?

A home warranty will serve as a buffer for a homeowner that does not have an emergency savings fund or needs to reserve money for many other things. For people who do not want to get stressed or those who are not that handy regarding chasing down a contractor if they are concerned, home warranties are helpful. Warranties can, however, make sense for those with expensive appliance choices.

During the selling and purchasing of a house, the discussion of home warranties often arises. A home warranty will give confidence to the home buyer who has a limited understanding about how a home component should be maintained or perhaps the situation of existing construction—how well the house was built.

A warranty will also benefit those who have already spent their funds to purchase a house and wish to prevent some high extra costs.

For home sellers, providing the buyer a compensated, one-year home warranty with the purchase can include a level of protection towards buyer concerns regarding some defects or issues found which might occur after the transaction completes.

However, providing a home warranty would not exempt sellers from the legal obligation to report any suspected home issues.

Is Home Warranty Worth It?

Sellers could provide a year of coverage as an incentive to home buyers, as a thank you gift for buying the house. Also, real estate agents often offer home warranties to customers. Some buyers of old houses believe that they are given trust through the warranty.

To cover home replacements and repairs, other homeowners conclude that they are better off setting up excess cash. Some recommend insurance for homeowners instead of a home warranty.

Buyers or homeowners who feel more secure with a home warranty can do proper research to find the top home warranty companies. It can be worth it if the company utilizes reputed and reliable contractors and can compensate for necessary repairs when required, and for home sellers who decide to provide a home warranty to a buyer.

A home warranty may be a smart option for expensive components near or beyond their average lifespan. However, components that have pre-existing issues are usually exempted from coverage.


A home warranty is not the best method for the problems and hidden costs that homeowners encounter. But If a seller offered you one, it’s beneficial on your part. And if you are planning to purchase one, though, read the home warranty contract and evaluate properly whether the warranty is good to go.

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