Home Warranties – Are They Worth the Cost?

Home Warranties

Home warranties provide coverage against costly appliance and system repairs or replacement costs, saving both you and your finances money in the process. They may seem costly at first glance but could end up saving both.

Home warranties offer peace of mind as well as time savings by eliminating the need to collect quotes from contractors or try DIY fixes yourself. But, not everything will be covered. For instance, read more here: Does a home warranty cover your microwave? | Cinch Home Services.

Peace of Mind

New homeowners often fear being hit with unexpected expenses soon after moving in, so home warranties can help alleviate their concerns by assuring that valuable appliances and systems are protected, with repairs or replacement costs not breaking the bank.

Home warranties and insurance policies can be especially valuable to those without significant savings or emergency funds to draw from in the event something goes wrong with their home. They can also help those who lack DIY experience and prefer not to have to rely on contractors when needed for assistance.

Before purchasing a home warranty policy, it’s essential to carefully read through its terms and conditions as well as check for accreditations from providers – this can be accomplished by visiting your state department of insurance or consulting the Better Business Bureau. Old Republic offers numerous coverage plans including heating/cooling systems, kitchen appliances, electrical systems, garage door openers, and more.


Appliances and systems in your home may wear down over time, even if they were just installed recently. When one breaks down, a home warranty company can connect you with local service providers who will repair or replace it as necessary – saving both time and money by eliminating multiple contractor quotes or doing repairs yourself.

Home warranties usually cost several hundred dollars annually depending on the plan you select, payable either monthly or as one lump sum payment. Most warranties also charge a service call fee when filing claims; fees will differ between providers; it’s important to read carefully through any contracts before making a purchase decision.

Home warranties can be an excellent investment for anyone who’s looking to lower the risk of unexpected expenses, but it’s important to remember that such warranties won’t cover repairs caused by acts of God or natural disasters.


Home warranties are service contracts that offer coverage for repairs and replacements of household appliances and systems, depending on the provider and coverage option you select. Usually, these plans cover similar items as homeowners insurance policies do.

An effective way of deciding if a home warranty is worth investing in is to carefully read its contract, which will outline what is and isn’t covered, along with actions that could void your policy. Furthermore, take a close look at its financial stability as well as the customer satisfaction ratings of its provider company.

Selecting a provider with an A rating from the Better Business Bureau is one way to ensure you will have access to the services when they’re necessary. Furthermore, compare costs and coverage limits between providers as well as review sample contracts; additionally, verify if there is an established network of service technicians available in your area.


Home warranties can save homeowners hundreds of dollars on repairs while giving them peace of mind. They’re especially useful for budget-minded or new homebuyers without enough funds to fix certain appliances or systems when they break down. While their worth to individual households will differ, most providers have online tools enabling users to receive customized quotes or reach representatives directly for personalized contact. Basic plan prices generally include monthly premium and service call fees with some companies also offering coverage options for additional items, like second refrigerators or appliances or roof issues for an additional monthly premium fee.

Annual premiums generally range from $50 or $75 at the low end to over $150 at the high end, with service charge rates depending on policy level, with higher-end plans typically offering reduced service charges. Direct costs should also be taken into consideration as well as what would happen should any system or appliance break down when making this decision about home warranties.