Home Warranties: What Buyers Need to Know

A home warranty helps protect buyers and homeowners from unexpected repair costs by covering key systems and appliances, giving peace of mind after moving in. Here's what Buyers need to know:

What is a Home Warranty?

A home warranty is a service contract that covers repairs or replacement of major systems and appliances in a home, like HVAC, plumbing, electrical, or kitchen appliances. It’s not the same as homeowners insurance—it’s meant to reduce unexpected costs for breakdowns, not protect against accidents or natural disasters.

Why Consider a Home Warranty?

Peace of mind: Protects your budget from unexpected repairs in the first year of homeownership.
Convenience: One call can get a contractor out to fix a covered item.
Potential negotiation tool: Some sellers include a warranty to make their home more appealing.

Typical Coverage

Home warranties vary, but common items are listed below. Always read the fine print—coverage limits, service fees, and exclusions can vary widely.

Heating & cooling systems
Water heaters
Electrical & plumbing
Kitchen appliances (oven, dishwasher, refrigerator)
Washer & dryer

Costs to Expect

Annual premiums: Usually $400–$700
Service fees: Typically $50–$100 per claim
Optional add-ons: Pools, spas, or septic systems may cost extra

Practical Tips for Buyers

Compare providers: Not all warranties are created equal. Check reviews and coverage limits.
Bundle with inspection: If your inspection finds an older system or appliance, a warranty might be worth the extra protection.
Don’t rely solely on it: Warranties are helpful, but they can’t replace proper maintenance or insurance.

Things to Ask Your Warranty Provider

What exactly is covered and what’s excluded?
Are repairs done by licensed contractors?
How quickly do they respond to service requests?
Is there a cap on how much they’ll pay per repair?

Bottom Line

A home warranty can provide peace of mind, but it’s not a magic safety net. Understand what’s covered, how much it costs, and how claims work before signing the contract.

Let’s Build Your Real Estate Strategy

Michelle Schwinghammer (colloquially known as "Schwing") is a real estate agent, broker associate with West + Main Homes, and the local expert behind SCHWINGSTATE LLC. Operating across the Denver Metropolitan area, Michelle specializes in ensuring her clients are fully educated, protected, and empowered.

I help buyers structure offers that are both competitive and intentional. I also am a champion of buyer education. Let’s strategize before you submit your first offer.

Schedule your Buyer Consultation now.