Are Home Warranties Worth It?

In order to find out more about the value of a home warranty plan and how homeowners feel about their policies, we surveyed 1,800 homeowners in March 2025 who have purchased a home warranty in the past year. We found some key insights that may help inform your decision on if a home warranty is worth it, especially in these key situations.

You Value Financial Peace of Mind

When asked, 64% of people in our survey said peace of mind was a major driver for taking on a home warranty, the most common answer that homeowners gave. A home warranty can offer great peace of mind if you’re concerned about upfront repair or replacement costs. For example, a broken fridge typically costs about $250 to fix, while refrigerator replacement can climb to $2,000. Home warranty policies can help you avoid paying for a pricey repair on the spot and instead limit your cost to a monthly premium and a service fee if the repair is covered.

Your Appliances and Systems Are Getting Old

When your appliances are nearing the end of their lives, they may need more frequent repairs or even replacement. Forty-four percent of people surveyed said they require coverage for aging systems and that was one of their reasons for opting for a home warranty. Home warranty plans are typically more valuable for older appliances and systems because of their tendency to break down while also no longer being under the manufacturer’s warranty.

However, some home warranty plans have age limits or restrictions on preexisting conditions, so be sure to ask about these if this is your main reason for getting a plan.

You Don’t Need To Choose Your Own Technician

Unless you have a roster of great technicians, it can be a job in itself to find a contractor you trust who is in your budget and available to perform a repair. In fact, 40% of homeowners surveyed said they wanted to have a single service for arranging repairs and that was a reason they opted for a home warranty. With home warranty plans, you typically submit a request for a repair and the company will assign an approved contractor without you needing to do the legwork.

However, if you do have pros you trust, you can still find a home warranty plan that will allow you to work with your own contractors, but there may be preapprovals required and other restrictions.

Budget Management and Potential Savings

Homeowners know that home maintenance can quickly add up, especially in older homes when repairs on and replacements of multiple items seem to pile up all at once. Home warranties can come in handy when budgeting because instead of factoring in the variable costs of multiple repairs or replacements, you can better anticipate what you’ll pay with set premiums and service fees. You can also save money because even one repair without a home warranty can greatly exceed the cost of your monthly premium. It tracks then that 35% of those we surveyed said budget management was a plus of a home warranty plan.

Keep in mind that not all home repairs will be covered, whether because of the reason for the repair, coverage limits or the item not being a part of your plan, but a home warranty can help give you some control over common repairs on your most important appliances and systems.

You Lack the DIY Skills To Do Repairs

While you may have some DIY skills, there’s no shame in being unfamiliar with or intimidated by repairing certain home appliances or systems. In fact, we’d recommend you leave more dangerous tasks to the pros. Having access to a network of trusted contractors with a home warranty plan can be a serious perk and relieve the stress of trying to repair something yourself.

Reduces Stress for New Homeowners

Home warranties often come with a new home, but if your closing didn’t come with one, it can still be a wise purchase for a new homeowner. The first year of home ownership can be daunting as you get used to unexpected repairs, especially in an older home. A home warranty plan can give you a resource to check out any interesting sounds coming from your dishwasher or flickering lights in your basement.

Selling a Home With a Home Warranty Included

The housing market can be tough, so adding a home warranty as part of the deal can be a smart way to make your home more attractive. Additionally, some home warranty plans can protect your home during the listing period, which can come in handy to ensure everything stays in tip-top shape.

For all of the peace of mind they can provide, home warranties have drawbacks. Here are a few situations when a home warranty may not be such a good idea:

You Purchased New Home Construction

Homes that are purchased as new construction will likely be covered under builders warranties and have appliances still under warranty as well. In this case, a home warranty typically won’t be worth it. Sometimes, warranties issued by another party (such as an appliance manufacturer) can void a home warranty, so you’re typically better off waiting to get one.

On a similar note, ideally, new homes won’t need repairs for a while, so you may pay for a home warranty you won’t have to use.

Claim Limits Are Not High Enough

If you’re worried about specific systems, we recommend looking at the coverage limits for that item in your home warranty contract. Then, you should price out what repairs may cost outright for that item. If typical repairs or replacements are much higher than your coverage limit, then a home warranty may not be worth it.

However, we recommend shopping around here, as some home warranty companies have higher coverage limits than others or you may be able to opt for add-ons or a higher plan to close the gap.

Wait Times Can Be Too Long

Sometimes the time it takes to contact a home warranty company and have it dispatch a contractor can be a major downside for homeowners. If you prefer a quicker turnaround time and a direct line to the contractor, a home warranty may not be the best choice.

However, some home warranty companies brag about their quick turnaround times, so if this is a specific concern, ask companies about their response times.

Your Contractor Choices Can Be Limited

While many home warranty companies assign a contractor to the job so you don’t have to shop around for one, you won’t always have a choice of service professional. You’ll need to check the fine print to find out if you can choose the technician. While some may prefer not having to look for a pro on their own, it can be a con for some.

You May Not Use It

Home warranty plans aren’t insurance, but they do have something in common with a home insurance policy—you may pay for it for years without using it. If you get lucky enough that nothing in your home breaks for a while, you’ll still be paying your premium without any benefit beyond peace of mind. That can be a fair trade-off for many, especially when the day comes that you do need the policy, but if the idea of paying for an optional service without immediate benefit bothers you, a home warranty may not be the best choice.

When we asked 1,800 people who purchased a home warranty in the last year how they felt about their home warranty plans, we found some interesting insights. While every person will feel a bit differently about home warranty plans based on the company and plan chosen, their home repairs needs and more, the insights can shed some light on the pros and cons.

• When asked if they thought their home warranty plan gave them adequate value for their money, 85% of respondents gave their plans a good rating, selecting at least a seven out of 10 on a 10-point scale. Satisfaction is high across all regions, with the Southwest standing out as the most satisfied region, reporting an average rating of 8.4. The West showed the lowest perceived value, with an average rating of 7.9.

How do you rate the value for money you receive from your home warranty company?

		REGION
	Total	Northeast	Southeast	Southwest	Midwest	West
1 = Very poor	1%	0%	1%	1%	1%	1%
2	1%	0%	1%	0%	0%	2%
3	1%	1%	1%	1%	1%	1%
4	1%	2%	1%	0%	1%	1%
5	4%	3%	4%	2%	5%	6%
6	7%	5%	7%	6%	7%	11%
7	13%	14%	10%	13%	18%	11%
8	22%	23%	21%	21%	23%	22%
9	22%	24%	25%	21%	18%	22%
10 = Excellent	28%	28%	30%	34%	25%	23%

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• In our survey, 89% of respondents said they are satisfied with the overall customer service experience with their home warranty company, as they rated between seven and 10 on a 10-point scale.

How satisfied or unsatisfied were you with the overall customer service experience of your home warranty company?

		REGION
	Total	Northeast	Southeast	Southwest	Midwest	West
1 = Very unsatisfied	1%	0%	1%	1%	1%	1%
2	1%	0%	1%	0%	0%	1%
3	1%	1%	1%	1%	1%	2%
4	1%	0%	2%	0%	1%	2%
5	3%	4%	2%	2%	5%	4%
6	5%	4%	4%	5%	5%	8%
7	11%	10%	10%	9%	14%	13%
8	20%	21%	17%	18%	21%	24%
9	26%	26%	27%	28%	25%	21%
10 = Very satisfied	32%	33%	35%	35%	29%	25%

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• Most—85%—of respondents say they are likely to recommend their home warranty service to family or friends, while only 14% are unlikely to do so, indicating customer confidence in their chosen company. Regionally, the Southwest stands out with the highest likelihood of a recommendation and the Midwest and West scoring 32 and 29, respectively, reflect weaker recommendation likelihood.

Based on your overall experience with your chosen home warranty company, how likely or unlikely would you be to recommend it to a friend or family member?

		REGION
	Total	Northeast	Southeast	Southwest	Midwest	West
1 = Very unlikely	1%	0%	1%	1%	1%	2%
2	1%	0%	1%	1%	0%	2%
3	1%	1%	1%	1%	1%	1%
4	2%	2%	1%	0%	2%	3%
5	3%	4%	3%	2%	4%	5%
6	7%	6%	7%	5%	8%	8%
7	12%	11%	10%	13%	13%	14%
8	19%	21%	18%	16%	23%	18%
9	22%	22%	24%	23%	19%	23%
10 = Very likely	32%	33%	34%	38%	29%	26%

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• The majority—81%—of respondents said they intend to renew their home warranty plan, while 9% will check coverage and plans of different companies before committing to a contract renewal. Regionally, the Northeast and Southeast are more likely to renew, while the West is more likely to search for an alternative home warranty provider when their contract ends.

When your contract is/was over with, which of the following did you do/do you intend to do?

		REGION
	Total	Northeast	Southeast	Southwest	Midwest	West
Cancel	3%	2%	4%	2%	2%	3%
Renew	81%	84%	84%	83%	79%	74%
Shop for a different home warranty company	9%	9%	5%	10%	10%	13%
Not sure	7%	5%	7%	5%	8%	9%

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Part of determining if home warranty costs are worth it is to compare your monthly premiums with typical home repair costs that would likely be covered under your plan. For instance, typical water heater repairs are around $600 on average. If your plan is in line with the average home warranty cost of $57, and your service fee is between $75 and $100, as many companies’ are, the repair is equal to roughly nine months of home warranty premiums.

We broke down some additional home repair costs below so you can do the math yourself:

COMMON REPAIRS	COST
Leaky faucet	$150 - $350
Roof repairs	$950
Water heater repairs	$600
HVAC issues	$215 - $1,200+
Electrical issues	$250 - $1,000+
Septic issues	$1,775
Dishwasher repairs	$250

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HVAC systems, which refers to the heating, cooling and ventilation systems and associated items in your home, are some of the most commonly covered items by home warranty plans. In fact, in our home warranty survey, heating was the most covered item by plans and AC was third. Because these issues can be so costly to repair (major HVAC issues can cost you over $2,000) and make your home so uncomfortable when these systems break down, home warranties can be worth it for HVAC systems. If your systems are on the older side and your plan doesn’t have age restrictions, it can be especially worth it.

As always, though, what is worth it to you will be individual, so be sure to do your research about certain plans and what they cover. We’d especially note that you should pay attention to the HVAC coverage limits with home warranty plans, as they can be lower than the cost of major repairs.

Home warranty plans can be worth it for appliances, as issues with your most important appliances can be inconvenient and costly. In our survey, 55% of respondents said their home warranty plans covered kitchen appliances and 47% said they covered laundry appliances. Some home warranty companies even have appliance-only plans if you’re particularly concerned.

That said, home warranty coverage for appliances will typically be the most worth it for older appliances and those that may require costly repairs (for instance, washing machine drums and dishwasher control boards can be costly). Similarly, you should check your appliance coverage limits to ensure you have enough coverage to make your plan worth it.

A home warranty offers protection against wear and tear on your home’s appliances and systems. What each policy covers will vary by company, but think HVAC, plumbing and electrical appliances that fail after years of use. You’ll pay a monthly premium to stay enrolled in the plan and pay a service fee each time a professional is dispatched to make a repair.

It’s important to distinguish a home warranty policy from a home insurance policy. Homeowners insurance protects your home’s structure and your personal belongings from extensive damage from certain covered incidents, such as a fire or natural disaster, or if someone gets hurt on your property. If you have a mortgage, the lender will likely require you to hold homeowners insurance.

On the other hand, home warranties are optional and cover the systems that keep your home running rather than protecting its value. These policies are designed to cover wear and tear, not incidents that cause damage.

Home warranty coverage depends on which company you buy your policy from. Some plans will focus on appliances, some systems and some a combination of both. Some commonly covered items include:

• Kitchen appliances like a stove, oven, dishwasher or garbage disposal
• Laundry appliances
• Plumbing systems
• Electrical systems

If you’re closing on a new property, you’ll sometimes find the seller will provide a home warranty policy for at least a year as part of the purchase contract. But if you can shop around, the best way to find out what a home warranty will cover is to research, ask questions and get quotes for different plans.

While the specifics depend on your policy, a typical home warranty plan generally excludes a few things.

• Structural problems related to your foundation, walls, paint or flooring
• Repairs to any commercial-grade equipment or systems
• Issues with rust, corrosion and sediment
• Pest damage
• Preexisting problems, like an appliance that was already broken when you bought your home
• Asbestos detection and removal
• Radon gas remediation
• Mold removal
• Issues related to building or zoning code violations

Remember that some of these items may occasionally be covered by a certain home warranty plan, and what your particular plan covers and any limitations will vary.

When you’re shopping for the best home warranty company, here are a few factors to consider to make the best choice. Is the company new or established? What do people say online about it? Will you pay for coverage every month, or will you need to pay a lump sum each year?

Be sure to vet the following:

• Plans and coverage
• Years in business
• Customer reviews
• Monthly or yearly service fees
• Available add-on coverage

If you need help comparing policies and providers, we analyzed over 50 plans from 19 companies. We reviewed price quotes and customer sentiment and detailed each company’s policies. Explore our list of the best home warranty companies.

Home warranty plans are just one option for protecting your home and preparing yourself for unexpected repairs. You can also consider the following options:

Build an Emergency Fund

This method may feel obvious, but it’s a go-to strategy for a reason. Setting aside an emergency fund—and even going as far as earmarking money for home repairs—can be a good alternative to a home warranty. Your bill may be a bit more variable with this plan, but you’ll save month to month by not paying a premium. Many sources recommend setting aside around 1% to 3% of your home’s value for an emergency fund, but anything is better than nothing to start.

Check If Your Appliances and Systems Have Manufacturer Warranties

If your home is a new build or was recently renovated, many of your appliances and systems may still be covered under builder or manufacturer warranties. Many times these warranties can void your home warranty, but even if they don’t, they’re a good, typically free alternative to home warranties.

Once your standard warranty is up, some appliances will have the option to extend your warranty for a fee, so this option can be another alternative.

Get Systems and Appliances Serviced Regularly

It’s important to note that home warranty plans assume that you maintain your systems already (and for some plans, it’s part of the fine print), but regular maintenance can also be an alternative to a home warranty. With frequent inspections, tune-ups and repairs, you can be better prepared for when home items or systems may give out. You may choose to work with contractors on inspections and repairs as needed rather than pay into a monthly home warranty plan.