Home Warranty
An annual service contract that pays for the repair or replacement of major home systems (HVAC, plumbing, electrical) and appliances when they fail from normal use.
Quick answer
Home Warranty: An annual service contract that pays for the repair or replacement of major home systems (HVAC, plumbing, electrical) and appliances when they fail from normal use. Typical cost: $400–$900 per year; $75–$150 service-call fee per claim..
Why it matters
Closes the gap between homeowners insurance (sudden, accidental damage) and out-of-pocket repair costs. Best value on homes with 10+ year-old systems.
Typical cost
$400–$900 per year; $75–$150 service-call fee per claim.
Pros
- • Caps your annual repair exposure
- • One number to call for any breakdown
- • Easy to budget
- • Useful for new homeowners
Cons
- • Exclusions for pre-existing conditions
- • Coverage caps per item
- • You don't pick the contractor
- • Net negative if your systems are new
Common uses
- • Older homes with aging systems
- • First-time buyers
- • Rental properties
Alternatives
Self-insure with a $2,000–$5,000 repair fundManufacturer extended warranties on individual appliances
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Frequently asked questions
- Is a home warranty worth it?
- Worth it when your home has 10+ year-old HVAC and appliances. Less useful on new builds or homes with manufacturer warranties.
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