Are home warranty insurance worth it?

When it comes to home warranty coverage, there are differences of opinion on the matter. Like most things, some are for them, while others are against them. One of the biggest questions people often ask is are home warranties worth it? And when are home warranties worth it? Others also think that a home warranty is a waste of money.


Those that wonder if a home warranty is worth it do so because they want to make sure their money will be well spent. In addition, homeowners and consumers who purchase home warranty coverage, want to be certain their items will be covered.

What are Home Warranty Policies?

Before we can begin to answer the question of whether or not home warranty policies are worth the money, we must first explain what home warranty coverage is. Home warranty plans or home owners warranty insurance are policies that people can buy to protect their home appliances and home systems. These policies are sold by reputable home warranty companies who issue the policy contract to a homeowner. They also sell them to real estate professionals and others involved in buying and selling homes.

A homeowners warranty policy works the following way. You can purchase a plan according to your individual home appliance needs. Once you have purchased a policy contract, the company will then agree to either replace or repairs any appliances or major home systems. Of course, these must be on the policy in order to be covered. In the event that either a major home system or appliance breaks down, you can file a claim by phone or via online.

When and if your claim is approved, you will then have to pay a deductible fee. The amount of the deductible varies. They are typically very affordable, depending on the company you choose. The home appliance insurance company will then send one of their networks professional service contract providers. These technicians will check on the problem and see whether repairs or replacements need to be done.

How Much Does Home Warranty Cost?

The pricing and packages of home warranty providers fluctuate. The same goes for the what the plans cover and the amount of a deductible you will pay. There are some companies which cover more than others do, for almost the same prices. At the same time, there are those that cover far less for a lot more money. The average price for a home warranty policy is around $250 to as high as $650 a year.

The differences in pricing will depend on the plans and company you choose. Also, most home service warranty providers will charge extra for certain items. In many cases, you can get a home warranty plan promo code or coupon to bring down the overall cost.

What Do Home Warranty Policies Cover?

When it comes to what do home warranty policies actually cover, there are several factors to consider. Homeowners warranty insurance coverage will differ depending on what company you choose, what state you live in and the plan or package you select. For the most part, the best-rated home warranty companies typically cover:

are home warranties worth it

  • Kitchen appliances
  • Central heating systems
  • Central Air Conditioning Systems
  • Clothes Washer and dryer
  • Range/Oven/Cooktop
  • Built-in microwaves
  • Garbage disposal
  • Ceiling fan
  • Kitchen exhaust fan
  • Water Heater
  • Duct Work
  • Garage door opener
  • Electrical System
  • Plumbing System


For any major systems such as pools/Spa combo, well pump, septic tank pumping, roof leak repairs, freezer stand alone, 2nd refrigerator, and a few other items, coverage will be extra. Again, the pricing and actual coverage will depend on the state you live in. The home warranty company you choose will also make a difference in what is covered. No matter what type of plan you choose, be sure to read the fine print in detail. Also, make sure that you ask exactly what will be covered. Too many people often have problems with home warranties after they file a claim. That’s when most find out that certain items they thought would be under the policy, were not covered.

Is A Home Warranty Policy Worth It?

When all is said and done, the question of whether or not are home warranties worth the money remains. The answer to this question can be different, depending on your particular situation. For those that have just purchased a recently built home, purchasing a policy may not be worth. In most states, the builders are required to repair any defects in workmanship and materials for several years. In addition, the new appliances found in the homes may be covered under warranty for at least a year. Still, you should find out what exactly is covered under your new home policy. If you don't have enough coverage, or the appliances or systems are not covered, then a homeowners warranty policy may be required.

Homeowners warranty cost - Are they worth it?

On the other hand, for those that purchase existing homes, the answer is different. Older homes are typically equipped with appliances that older and major home systems that have been around much longer. Since these older homes, major home systems and appliances are older, the chances of them breaking down are higher. One of the major advantages of having a home appliance and major system coverage is what it offers. You don't have to worry about spending money on a technician if something does break down. Plus, if the appliance needs to be replaced completely, the home warranty policy will cover it. That can mean huge savings for you and can lead to the policy paying for itself in the long run.

Home Warranty Advice – Are Home Warranties Worth It?

Home appliance insurance plans or home warranty protection plans are a preemptive tactic. That means that you don’t have to wait for something to break down or need replacing for you to have coverage for the item. It is the same as not waiting for your home or business to be broken into before you install a security system. Using that logic does make home warranty policies worth it. Fact is that there are many pros and cons to purchasing home appliance warranty insurance. However, when they are compared side by side, there are more pros than cons.

Although home warranties can cost about $250 to $600 a year, the price is not much when compared to the alternative. Most major appliances’ replacement or repairs can end up costing quite a lot more. Even more so, major home systems can actually end up with more replace or repair costs. Too many homeowners have had to file for bankruptcy or gone into debt after a major home system failure. The cost can end up being far more than what some have saved or can afford. In the end, home warranties can give you peace of mind knowing your major home systems and appliances will be under the policy if something happens. That is one of the biggest pros of having home appliance cover or a home warranty policy in place.

Choosing The Best Home Warranty Coverage

Top rated home warranty companies

If you do decide that home warranty protection is for you, then the next step is choosing a provider. To make sure that you select a reputable, dependable and reliable house warranty insurance company, keep this in mind. Always search for one of the top home warranty companies out there.

Factors such as their BBB ratings, reviews, pricing and overall coverage are important. The same goes for any complaints filed against them, the lack of coverage and the time they take to answer your claims. We have reviewed many of the best-rated home warranty companies here. You can check to see which ones are worth the money and which ones to avoid.

Final Thoughts on If Home Warranties are Worth it

To some, a home warranty policy may not be the perfect solution. However, to others looking to protect their appliances, home, and future, it can provide an umbrella of security. In the long run, it is better to have protection in place when the time calls for than not. While there are some home buyers protection insurance companies that will be there when you need them, there are others that will not. Make sure you get the company and research all you can about them before making your decision. Consumer reports full reviews of most of the top ten home warranty companies in 2017 to help you to more wisely make your decision.