What to Know About Getting a Home Warranty

Purchasing a home is usually an expensive endeavor, as the average median price of a home is well over $200,000. That is why purchasing a home is essentially considered an investment. One specific thing you will have to consider when purchasing a home is the home warranty.

Home warranties are essentially service contracts that guarantees payment for the cost of replacing or repairing items such as heating, air conditioning, plumbing and other malfunctioning appliances. Here are some of the details and tips that you will need to preemptively consider.

What To Know About Limitations

The first thing you need to understand about a home warranty is where the line is drawn. While you may initially have a peace of mind that expenses will be taken care of. However, you should also understand that providers often put provisions in those warranties to protect themselves from having to fully provide payouts. Consumers will often go to the Better Business Bureau because they didn’t get expected benefits.

Therefore, you need to fully evaluate your warranty and see that you are getting coverage for what you need. Most plans don’t cover items such as windows or the structure of your home. Make sure you’re not expecting coverage for something that isn’t.

Do You Already Have Protection?

Another thing to ask is whether or not you have coverage for the things that you need. Even if your appliances aren’t in new condition, they could be still under warranty if purchases were made on a credit card. With certain credit cards, the length of the warranty is extended. In fact, the warranty in a lot of cases could be extended up to an extra 24 months.


The cost of home warranties will generally depend on what provider you choose and the plan that you buy. There is basically three kinds of home warranties that you can buy. There are plans for a specific appliance, plans for all of your appliances or plans for appliances and electrical systems with plumbing.

These prices will often vary based on your location. Bigger and more populated areas such as New York may be pricier. In addition, you also have to consider the other associative costs that come with it. This includes the copayments and fees.


You should also be aware of whether or not there are limits on how much the plan will pay out. Usually, there are but once again, this is contingent on the provider you choose. One example is a 12-month membership plan from America’s 1st Choice Home Club. Up to $2,000 in repairs, replacements and diagnosis is paid for. However, the specific terms of the warranty varies across numerous companies.

Does It Replace or Repair Broken Items?

Finally, you’ll want to be clear on whether or not your warranty will repair or replace broken items. Usually, most companies will offer to replace an item rather than repair it if it is considered to be too expensive.