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6 minutes read

Do I Need a Home Warranty?

Find out what a home warranty covers and whether it’s worth buying for your home.

KB

Kyler Bruno

10/06/2025

Do I Need a Home Warranty?

Buying a home is one of the biggest financial decisions you'll ever make.

Beyond the mortgage, property taxes, and maintenance costs, there are other protections to consider, including home warranties.

But how do you know if a home warranty is worth it?

This guide will help you answer that question while explaining what a home warranty is and whether it makes sense for your situation.

What’s a Home Warranty?

A home warranty is a service contract that covers repairs or replacements of key systems and appliances in your home.

Unlike homeowners insurance, which protects against damage from events like fires or storms, a home warranty covers mechanical failures due to normal wear and tear.

Typical items covered include:

  • HVAC systems
  • Plumbing and electrical systems
  • Water heaters
  • Kitchen appliances (refrigerators, ovens, dishwashers, etc.)

For a set yearly or monthly fee, homeowners pay a service call fee whenever a covered appliance or system breaks down. The home warranty company then sends a technician to repair or replace it.

A home warranty can offer peace of mind, especially for first-time homeowners or buyers of older homes, where maintenance costs can quickly add up.

Do I Need a Home Warranty?

Whether you need a home warranty depends on several factors:

Age of the Home

Older homes tend to have more maintenance issues. If you’re buying a home that is over 10 years old, a warranty could protect you from unexpected repair costs.

Condition of Appliances and Systems

If major systems or appliances are nearing the end of their lifespan, a warranty may help cover costly replacements. For newer homes with updated appliances, the benefit may be less significant.

Your Risk Tolerance

Some homeowners prefer to take the risk themselves and save money by not purchasing a warranty. Others value the peace of mind that comes with predictable repair costs.

Budget Flexibility

If you have a tight budget and can’t absorb unexpected repair costs, a warranty can help prevent financial strain.

It’s also worth noting that some real estate sellers offer a home warranty as part of the sale to make their property more attractive. If this is the case, it may be worth considering even if your home is newer.

Do I Need a Home Warranty

Are Home Warranty Plans Worth It?

The value of a home warranty depends on how often you use it and the cost of coverage.

Here’s what to weigh:

Pros

  • Predictable costs: Warranties help avoid surprise bills for expensive repairs.
  • Convenience: The warranty company arranges repairs and replacements, saving you time and stress.
  • Peace of mind: Especially for first-time homeowners, a warranty provides reassurance.

Cons

  • Limited coverage: Not all systems and appliances are covered. Some warranties have exclusions for certain parts or types of damage.
  • Service call fees: You still pay a fee each time you request a repair.
  • Coverage caps: Most plans have limits on repair or replacement amounts.
  • Variable quality of service: Not all warranty companies provide the same level of service.


In short, if you have older appliances or systems that are prone to breakdown, a home warranty could be worth it. But if your home is newer and well-maintained, you might find a warranty unnecessary.

Are Home Warranty Plans Worth It

Should I Buy a Home Warranty?

When deciding whether to buy a home warranty, consider your specific situation:

  • First-time homeowners: A home warranty can provide peace of mind while you’re learning the ins and outs of home maintenance.
  • Older homes: A warranty can protect against costly repairs for aging appliances and systems.
  • Tight budgets: If unexpected repairs could strain your finances, a warranty offers protection.
  • Real estate purchases: If a seller offers a warranty, it can be a valuable perk.

Before purchasing, read the fine print.

Not all warranties cover the same items, and some may have significant exclusions or limitations. Comparing several providers will help you find the best value for your needs.

Should I Buy a Home Warranty

Additional Tip: Buying an Investment Property

If you’re thinking about buying an investment property, you might wonder whether a home warranty is worth it.

For rental properties, a warranty can make your property more appealing to tenants while protecting you from expensive repair costs that can eat into your profits.

For example, if your rental property has older appliances or HVAC systems, a warranty can cover those repairs without you having to spend time and money handling them yourself. It also helps maintain tenant satisfaction by quickly resolving maintenance issues.

FAQs about Home Warranties


Do I need a home warranty?

Not every homeowner needs a home warranty.

If your home has older systems and appliances that may break down soon, a warranty can protect you from costly repairs. However, if your home is newer or most items are still under manufacturer’s warranty, you may not need additional coverage.

Is it important to get a home warranty?

It’s important if you want peace of mind and predictable repair costs.

A home warranty can be especially valuable for first-time buyers, budget-conscious homeowners, or anyone purchasing an older property. If you’re comfortable handling unexpected repairs on your own, a warranty may be less necessary.

What are the cons of a home warranty?

Some of the main downsides include:

  • Limited coverage with many exclusions.
  • Service call fees, even if the repair is minor.
  • Coverage caps that limit how much the company will pay.
  • Potential delays or inconsistent quality of repair service.


Are home warranties worth it?

Home warranties are worth it if you use them frequently and have older appliances or systems that are expensive to replace.

They may not be worth the cost if you have newer systems still under the manufacturer’s warranty, or if you prefer to save money for repairs yourself.

What are two reasons not to buy an extended warranty?
  1. Overlapping coverage: Many appliances already come with a manufacturer’s warranty, so buying extended coverage may duplicate protection.
  2. Cost vs. benefit: If repairs are unlikely or inexpensive, the cost of an extended warranty could be higher than simply paying out-of-pocket.

Why More Washington Buyers Trust WithJoy.AI

When you’re buying a home, every dollar matters.

From down payments to closing costs, and even optional protections like home warranties, it’s important to keep your budget in check.

That’s where WithJoy.AI comes in.

🏡 Smarter Than a Discount Real Estate Agent

WithJoy.AI isn’t just another brokerage. We combine local real estate expertise with cutting-edge technology to deliver full-service support while helping you save thousands on your purchase.

💸 Real Estate Commission Rebates

That Free Up CashWe offer an incredible buyer rebate programs. That means up to 70% of your buyer agent’s commission is rebated/credited back to you at closing, cash savings you can use toward a home warranty, upgrades, or simply to boost your savings.

🤖 A Streamlined Buying Experience

Our platform makes it easy to explore homes that fit your needs, schedule showings on your time, and submit smarter, more competitive offers

💬 Why Buyers Are Making the Switch

Whether you’re weighing the cost of a home warranty, looking for ways to stretch your budget, or searching for a better homebuying experience, WithJoy.AI ensures you keep more money in your pocket without sacrificing service.

Why More Washington Buyers Trust WithJoy
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