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Home Warranty Facts Home Owners Should Know

Home warranties are service contracts that cover the cost of repairs or replacement for certain appliances and systems in your home, typically including an annual fee and service call fees when there is an issue that needs attention.

Homeowners spend much of their lives inside their homes, which puts strain on systems and appliances which eventually break down or need replacing.


Home warranty plans typically cost several hundred dollars annually in premiums that must be paid upfront (or monthly if the home warranty company offers payment plans) to cover repairs or replacement of potentially hazardous items in your home.

Read more about this here: Home Warranties – A Fresh Approach | Cinch Home Services

Home warranties typically feature a deductible. Once a claim has been filed, your home warranty provider sends one of its service contractors out to your house to address it; depending on the company, these technicians should have been thoroughly vetted as professionals in their respective fields.

Many new homeowners purchase a home warranty to mitigate financial risk and cut costs shortly after moving into their new homes. But this strategy only makes sense if the cost of the plan is less than what could be spent on emergency repairs or prevents building an emergency fund. Some buyers try negotiating its cost through negotiations with their seller or real estate agency as part of their sales process.


Home warranty companies provide homeowners with various plans designed to meet their unique needs. Some plans cover only systems, like HVAC units and water heaters; others encompass more comprehensive home systems including appliances. Septic tanks, well pumps, and pest control may also be covered as add-on options – additional coverage could even extend to swimming pools, hot tubs, and other amenities!

Home warranties typically provide coverage for repairs caused by normal wear and tear; however, in certain instances, a home warranty company may deny claims due to “improper maintenance” or repairs that fall outside their coverage policy. Buyers should carefully read through a home warranty contract’s limitations and exclusions and compare prices among providers to get the best value for their money.


Home warranties can be an invaluable asset for new homebuyers or sellers, yet quality home warranties come with specific restrictions that protect both parties involved – exclusions and coverage limits to prevent abuse are among these measures.

Home warranties do not act like insurance policies and therefore don’t cover things such as preexisting conditions; thus, buyers and sellers need to carefully evaluate any policy before making their decisions.

Additionally, home warranties will not cover items damaged due to improper installation or violations of codes, nor structural problems such as foundations and support beams – these should usually be covered through homeowners insurance instead.


Home warranties differ from homeowners‘ insurance policies in that they do not overlap. As with any contract, consumers should carefully read through a warranty contract to understand which appliances, systems, and components are covered and what actions will void its coverage. Some state governments regulate companies that provide home warranties; their license lists are often available online.

Real estate agents frequently recommend home warranties to their clients and sellers may even include them as part of the sales agreement, yet buyers should carefully evaluate if these services are worth paying for – particularly given limited knowledge about how well a house was maintained or built as well as having already spent all their savings to buy their new house.

Furthermore, it is essential to keep in mind that warranty contracts often contain loopholes designed to benefit warranty companies. Specifically, such agreements often exclude items determined to be in disrepair or showing unusual wear and tear by them.

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