Are Home Warranties Worth It?

Justin weighs in.


 Although buying beats renting any day, many new homeowners might dread the upkeep that comes with buying a home… what if the AC won’t turn on in the middle of summer? Or if your shiny new smart fridge just stops working? These hiccups can be expensive and annoying, especially if you’ve just closed on your dream home.

Enter: home warranties.

Purchasing a home warranty is an upfront cost that can help alleviate some of the financial burdens if a major appliance or home system goes out. It can cover the cost of repair or replacement of covered items (such as your fridge), as well as electrical, plumbing, heating, and air conditioning systems. It doesn’t cover windows, doors, or other structural features.

This is separate from your homeowner’s insurance, which would cover losses incurred if your home and belongings were damaged or lost due to fire, theft, or other calamities.

A home warranty will cost around $350 to $600 a year– or more depending on what you want covered.

Without a home warranty, you could spend hundreds or thousands of dollars repairing or replacing major appliances or systems. If you don’t have money set aside for these expenses, a home warranty can more than pay for itself.

When it is worth it— if you are purchasing an older home, or your home inspection uncovers that several of the home’s appliances and systems are nearing their life span.

When to skip it— if you are buying new construction or a newly-renovated home, you will likely get some type of warranty from the builder and appliance/system manufacturers. In these cases, a home warranty would simply be duplicate coverage.

If you decide to go with a home warranty, be sure to shop around, check ratings with the Better Business Bureau, and closely review the contracts.

And as with anything having to do with your home, my team and I are here to help you determine if a home warranty is a smart choice for you and refer companies we personally work with and trust.



Interested in knowing more about buying or selling in Central Florida in the current market? Our team is ready to help. Give your favorite Core Group agent a call, or call the office at 407-930-4855.