How to Choose the Right Home Warranty

How to Choose the Right Home Warranty

As a first-time homebuyer or a seasoned real estate investor, you may have come across the term “home warranty.” A home warranty is a service contract that covers the repair or replacement of essential home systems and appliances. It provides peace of mind to homeowners and can be an attractive selling point for real estate agents. In this article, we will explore the ins and outs of home warranties, discuss the factors to consider when choosing one, and provide valuable insights to help you make an informed decision.

Understanding Home Warranties

A home warranty is different from homeowners insurance. While homeowners insurance covers damages caused by events like fires, storms, and theft, a home warranty covers the repair or replacement of essential home systems and appliances due to Normal wear and tear. Some examples of items typically covered by a home warranty include:

  • Heating and cooling systems
  • Electrical systems
  • Plumbing systems
  • Major appliances (e.g., refrigerator, oven, washer, and dryer)

Home warranties can be purchased by homeowners, real estate investors, or even real estate agents on behalf of their clients. They typically last for one year and can be renewed annually.

Benefits of a Home Warranty

There are several benefits to having a home warranty, including:

  • Financial protection: A home warranty can save you money on costly repairs or replacements of essential home systems and appliances.
  • Peace of mind: Knowing that your home’s essential systems and appliances are covered can alleviate stress and provide a sense of security.
  • Convenience: Home warranty companies typically have a network of pre-screened service providers, making it easy to find a qualified professional to handle repairs.
  • Increased home value: A home warranty can be an attractive selling point for potential buyers, as it demonstrates that the home has been well-maintained.

Factors to Consider When Choosing a Home Warranty

With numerous home warranty providers and plans available, it’s essential to consider several factors to ensure you choose the right one for your needs. These factors include:

1. Coverage

Home warranty plans can vary significantly in terms of coverage. Some plans may only cover basic systems and appliances, while others may offer more comprehensive coverage. When comparing plans, make sure to review the list of covered items and any exclusions or limitations. Additionally, consider any optional add-ons that may be available, such as coverage for a swimming pool or septic system.

2. Cost

Home warranty plans can range in price from around $300 to over $1,000 per year, depending on the level of coverage and any optional add-ons. In addition to the annual premium, most plans also require a service call fee (also known as a deductible) for each repair or replacement. This fee typically ranges from $50 to $125. When comparing plans, consider both the annual premium and the service call fee to determine the overall cost.

3. Service Provider Network

Home warranty companies typically have a network of pre-screened service providers that they work with to handle repairs and replacements. When choosing a home warranty, consider the company’s service provider network and whether they have a sufficient number of qualified professionals in your area. Additionally, inquire about the company’s process for handling service requests and their response time.

4. Customer Reviews and Ratings

Before selecting a home warranty provider, research customer reviews and ratings to get a sense of the company’s reputation and the quality of their service. Websites like the Better Business Bureau (BBB) and Consumer Affairs can provide valuable insights into customer experiences and satisfaction levels. Keep in mind that no company will have a perfect rating, but consistently poor reviews or numerous complaints should be a red flag.

5. Contract Terms and Conditions

Before signing up for a home warranty, carefully review the contract terms and conditions. Pay close attention to any exclusions, limitations, and the company’s cancellation policy. Additionally, make sure you understand the process for filing a claim and any requirements for maintaining your home systems and appliances to ensure coverage remains in effect.


Choosing the right home warranty is an important decision for homeowners, real estate investors, and first-time homebuyers. By considering factors such as coverage, cost, service provider network, customer reviews, and contract terms, you can make an informed decision that best suits your needs and provides peace of mind. Remember, a home warranty can be a valuable investment in protecting your home’s essential systems and appliances, so take the time to research and compare your options before making a final decision.

Kurby Team

The Kurby Content Team is a diverse group of seasoned real estate experts dedicated to providing insightful, reliable information for homebuyers, real estate investors, and real estate agents. With backgrounds ranging from real estate brokerage, property investment, and residential home buying, our team combines decades of experience with a passion for demystifying the real estate world. We at Kurby are committed to helping you make informed, successful real estate decisions. Whether you're a first-time homebuyer, a seasoned investor, or a real estate professional, count on the Kurby Content Team to deliver the most relevant, actionable real estate content you need.

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