Do You Need a Home Warranty?

When you’re buying a home, renewing an existing policy, or weighing your coverage options, the question of whether you truly need a home warranty will inevitably arise. A home warranty is essentially a service contract designed to take some of the uncertainty out of homeownership by covering repairs or replacements for key systems and appliances when they fail from everyday wear and tear.

Unlike homeowners insurance — which protects against events like fire or storm damage — a warranty focuses on keeping the inner workings of your property functional. It typically covers HVAC systems, plumbing, electrical components, and major appliances like refrigerators, ovens, and washing machines.

The details matter, though. Each provider defines what’s covered, sets payout limits, and lists exclusions. If you’re going to invest in a warranty plan, you’ll want to know exactly where its protection begins and ends.

Buying a home can sometimes feel like a high-stakes leap. Even with a detailed home inspection completed, there’s always the possibility that an appliance or system could break soon after you move in. Thankfully, a home warranty acts as a safety net during that vulnerable first year, offering financial backup and one-call convenience when something goes wrong.

For many buyers, the appeal is about more than just money. It’s the ability to hand off the hassle of sourcing contractors, scheduling repairs, and negotiating costs. Instead of scrambling in an emergency, you can simply call your warranty provider, pay the service fee, and let them coordinate the repair.

If your home warranty is coming up for renewal, this is your perfect chance to re-evaluate whether it’s still worth the investment. Look at your usage over the past year, including how many claims you filed, how quickly repairs were handled, and whether the coverage still fits your home’s needs.

Homes evolve over time. Appliances are replaced, systems age, and your priorities shift. If you’ve made upgrades like installing a second HVAC unit or investing in newer, high-end kitchen appliances, your current plan may not provide the right level of coverage anymore. Adjustments now can save you from headaches later.

Not all home warranties are created with the same level of detail or terms. When reviewing plans, focus on more than just the price:

• Coverage limits – Assess the maximum payout per repair or replacement.
• Exclusions – Pre-existing issues, improper installation, or lack of maintenance may void coverage.
• Service fees – Understand what you’ll pay per call and whether it applies even if no repair is made.
• Repair network – Some providers require you to use their contractors; others allow more flexibility.

These details make the difference between a warranty that protects you and one that frustrates you.

Annual premiums for a home warranty generally range from $300 to $700 for basic coverage and up to $1,000 or more for comprehensive plans. The upfront cost may seem reasonable — especially when compared to the potential expense of a major repair — but remember to include service call fees and any partial coverage gaps in your calculations.

Replacing an HVAC system can run $5,000 to $10,000, so even a single large claim could make the warranty worth it. However, if most of your covered items are newer and unlikely to break down soon, you might pay more in premiums and fees than you would for occasional out-of-pocket repairs.

One of the biggest mistakes homeowners make is assuming that “covered” means “completely covered.” In reality, coverage is often narrower than expected. For instance, plumbing coverage might not include fixtures like faucets, while refrigerator coverage might exclude ice makers. Cosmetic issues like scratches, dents, or discoloration almost always fall outside the plan as well.

Another common frustration is claim denial due to “lack of maintenance.” If your warranty requires proof of regular servicing — like HVAC tune-ups — you’ll need to keep the proper documentation on hand.

A home warranty can be particularly valuable if:

• You’re buying a home with older appliances and systems.
• You want predictable repair costs rather than surprise expenses.
• You prefer to outsource the stress of finding and vetting contractors.

If your home’s major components are already under manufacturer warranties or are only a few years old, you may not get the same level of value.

When something breaks down, speed matters. To keep the process efficient:

• File your claim immediately rather than waiting for the problem to worsen.
• Provide clear descriptions and photos when possible.
• Keep maintenance records ready to submit if needed.
• Follow up if you don’t hear from the provider within their stated timeframe.

Prompt communication helps avoid repair delays and increases the likelihood of a favorable outcome.

The decision to purchase, renew, or upgrade a home warranty ultimately comes down to one thing: how you want to handle the financial side of inevitable breakdowns. For some, the predictable cost and streamlined service are well worth the premium. For others, keeping cash reserves for repairs offers greater control and flexibility. Evaluating your home’s age, the reliability of your systems, and your personal comfort with repair risk will point you toward the right decision.

A home warranty can be a valuable safeguard for some. The key is to choose a plan that aligns with your home’s needs and your lifestyle while understanding exactly what the warranty covers. With the right preparation, you can decide confidently — knowing you’ve struck the best balance between protection, convenience, and cost.

If you’re ready to begin, contact us—K.E. and Amy—at the Berry Boyd Group for trusted guidance, from home warranties to negotiations and beyond. We’ll help you achieve your real estate goals in North Texas.