6 minutes read
Find out what a home warranty covers and whether it’s worth buying for your home.
KB
10/06/2025
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.
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:
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.
Whether you need a home warranty depends on several factors:
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.
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.
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.
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.
The value of a home warranty depends on how often you use it and the cost of coverage.
Here’s what to weigh:
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.
When deciding whether to buy a home warranty, consider your specific situation:
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.
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.
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.
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.
Some of the main downsides include:
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.
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.
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.
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.
Our platform makes it easy to explore homes that fit your needs, schedule showings on your time, and submit smarter, more competitive offers
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.
Here are the really good reasons why homebuyers pay for the inspection
KB
03/05/2025
A financing contingency lets buyers cancel and recover earnest money if they lack financing.
KB
07/26/2025
For new builds, request the builder's custom paperwork early in the sales process.
KB
07/28/2025
Full Service Home Buying - WithJoy.AI
The future is here. Buy your next home WithJoy.AI