Home Warranties: The Good, The Bad, and The Ugly

When it comes to home warranties, there are three things you need to know: the good, the bad, and the ugly. Let’s start with the good.

Home Warranties: The Good, The Bad, and The Ugly

The Good

Home warranties can be a great way to protect your investment. If something goes wrong with your home, you’re covered. That means you won’t have to pay for repairs or replacement out of pocket.

Home warranties can also save you money over the long run since they often cover parts and labor that are not typically included with typical homeowners insurance policies. Furthermore, many home warranty companies offer additional coverage for appliances, HVAC systems, and other items that may not be covered by a traditional policy. That peace of mind can give you assurance when it comes time to make home repairs or replacements.

Real estate agents also often recommend home warranties for home buyers. This can give homebuyers the assurance that they are getting a home with coverage, and it can provide them with additional peace of mind should something go wrong after closing on the home. Home warranties can also be used by sellers as an incentive to attract home buyers, as it can give the home additional value in the eyes of potential home buyers.

There are a few things to keep in mind when you’re shopping for a home warranty. First, make sure that you understand the coverage. What does the warranty cover? What doesn’t it cover? Make sure you’re clear on that before you buy. Second, pay attention to the deductibles. Some home warranties have high deductibles, which means you’ll have to pay more out of pocket before the warranty kicks in. Others have low deductibles, which can save you money in the long run.

Finally, compare prices. Home warranty companies charge different rates, so it pays to shop around. Get quotes from several companies before you make a decision. A home warranty is a service contract that covers the repair or replacement of home systems and appliances that break down due to normal wear and tear. The average cost of a home warranty is $300 to $600 per year. Home warranties typically cover HVAC systems, plumbing, electrical systems, water heaters, and major appliances such as refrigerators, dishwashers, and washing machines. Some home warranties also cover pools, spas, and other outdoor features.

Home warranties can provide a cost-effective way to maintain and repair your home without having to break the bank. The insurance coverage provides protection against unexpected repairs or replacements, which means you don’t have to worry about paying for those out of pocket.

Overall, home warranties can be a good way to protect your investment and save money in the long run. It’s important to do your research to make sure you get the right coverage for your needs. With careful consideration, a home warranty can give you peace of mind that your home is covered should something go wrong.

All in all, home warranties can be a great way to protect your home and give you peace of mind when it comes to home repairs and replacements. They provide coverage that traditional home insurance policies may not cover, and they also allow home buyers and sellers additional assurance when purchasing or selling real estate.

The Bad

The bad news is that home warranties can be expensive. You’ll typically pay a few hundred dollars for a policy, and then you’ll have to pay a deductible whenever you use it. That can add up over time.

Plus, home warranties can be confusing and the coverage offered may not always be the most comprehensive. It’s important to read the fine print and make sure the policy you choose is the best one for your needs.

A lot of the larger home warranty companies such as HAHA, American Home Shield, and Old Republic only protect certain appliances. But when your HVAC goes out or your water heater has an issue, they’re not there to help.

Home Warranties: The Good, The Bad, and The Ugly

Also, depending on the company you go with, they may not cover everything in the home warranty plan. It’s important to do the research and make sure the plan you choose covers the items you need it to.

After waiting on the phone for hours, all you hear from a customer service representative is “Read the fine print”.

The Ugly

The ugly part is that the home warranty industry can be full of scams. Be sure to do your research and make sure the company you’re going with has a good reputation and isn’t trying to sell you something you don’t need.

These large companies are more concerned with protecting their own bottom line than they are with helping the average homeowner.

Some home warranties can be difficult to get out of. Some providers require you to pay a cancellation fee if you decide to cancel your policy early. Others may not refund any portion of your premium, even if you have only used the service once or twice during the coverage period.

When buying a home, homeowners and first-time buyers are not that concerned about the home warranty, because their mindset is usually on the loan, appraisal, and other issues.

Home Warranties: The Good, The Bad, and The Ugly

But it’s important to be aware of the good and bad aspects of home warranties so that you can make an informed decision when buying or selling a home. Having knowledge about this topic will also help you avoid scams and unnecessary costs in the long run. Doing your research is key, as always!


So there you have it – the good, the bad, and the ugly when it comes to home warranties. Do the research, make sure the plan covers the items you need covered, and don’t get scammed. With the right plan in place, home warranties can be a great way to protect your investment and save you money over the long run.

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2 thoughts on “Home Warranties: The Good, The Bad, and The Ugly”

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