3 Important Reasons to Get a Home Warranty When You Buy a Home

So, Are Home Warranties Worth It?
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Homeowners insurance. Manufacturers warranties. Builders warranties. And now home warranties? How much coverage does one home need?

Actually, each of the options above covers different elements of a home. And while it’s smart to be careful not to pay for duplicate coverages, home warranties can be a smart option for first-time home buyers or buyers new to a region. 

Today, let’s look at exactly what a home warranty is, what it typically covers, and three important reasons why you should get one when you buy a home.

What is a Home Warranty, and What does it Cover?

A home warranty is a home service plan that protects you, the homeowner, from covered breakdowns. The warranty will help reduce the cost to repair or replace many of the systems and appliances in your home, especially those no longer covered by manufacturer warranties and not included in your homeowners insurance. Home warranties typically last one year, but can be renewed for additional time.

Home warranty plans vary by price and coverage. According to the National Home Service Contract Association (NHSCA), a typical home warranty will cover:


  • Electrical
  • Ductwork
  • Heating
  • Interior plumbing
  • Water heater


  • Air conditioning (sometimes optional)
  • Dishwasher
  • Garage door opener
  • Garbage disposal
  • Pool equipment (optional)
  • Oven, range, or cooktop
  • Refrigerator (sometimes optional, may exclude ice maker)
  • Spa equipment (optional)

A warranty doesn’t cover windows, doors, or other structural features.

1. Home Warranties Provide Peace of Mind

There are many features of your home that aren’t covered by homeowners insurance. Homeowners insurance may protect your water heater from theft, vandalism, or fire damage. But if it dies a sudden death on a chilly February morning, leaving you with no hot water for a shower before work, what can you do? 

Home warranties are there to cover the costs of repairs or replacement so that you don’t have to dip into your savings or emergency funds. The warranty company also does the hard work of scheduling a trusted professional to complete the repairs. This peace of mind is especially helpful during your first year in a home, when you have limited information about how well the home’s components have been maintained, or if you’re new to the area and unfamiliar with local service professionals.

2. Warranties Don’t Vary by Home Age and Size

Home warranties in Western North Carolina average $350–$500 for basic coverage, which is typically paid in one payment up front. This coverage usually does not vary with the property’s age. (However, if a home is brand new, it can increase the cost of coverage.) For homes under 5,000 square feet, the home’s size also does not usually affect the price. Compared to the thousands of dollars it could cost you for a new water heater or range, home warranties are very affordable. Should you need a new system or appliance during your coverage period, the warranty will have more than paid for itself.

3. The Seller May Buy It for You

If the two reasons above don’t sell you on the need for home warranties, maybe this one will: In many cases, the home seller will purchase the warranty for you, the buyer, as part of their closing costs. If the home does not have an existing warranty that can be transferred to you, some sellers will offer to purchase one as an incentive to buyers on closing day. In the current seller’s market we’ve seen, this is less common than in years past. However, if this is an important stipulation for you in your negotiations or due diligence, it never hurts to ask for it.

So, Are Home Warranties Worth It?

Like all forms of insurance and property coverage, home warranties are only as good as your coverage when needs arise. However, if your home purchase temporarily drained your financial safety net, or if you’re moving into an older home with appliances near the end of their lifespans, home warranties can offer the peace of mind you need over the first year in your new home. 

Do you have additional questions about home warranties and other new home buyer concerns? Your full-service Beverly-Hanks agent is with you from contract to closing—and beyond! Contact your Beverly-Hanks agent today for all your home buying needs.

Can you think of other reasons to get a home warranty? Share them with us in the comments!

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