What Is a Home Warranty?
A home warranty is a renewable service protection plan that covers the repair or replacement of major home systems and appliances when they break down due to normal wear and tear. Unlike homeowners insurance, which protects against disasters like fire or theft, a home warranty offers peace of mind by safeguarding your budget from unexpected repair costs.
When purchasing a home, buyers can opt for a home warranty to cover essential appliances, plumbing, electrical systems, HVAC units, and more. First American Home Warranty, for example, provides 13-month coverage with flexible plans that offer more coverage, upgrades, and savings.
How Much Does a Home Warranty Cost?
Home warranty plans typically range from $400 to $700 annually, depending on the coverage level and optional add-ons. Basic plans often include kitchen appliances, plumbing, electrical systems, and HVAC. More comprehensive plans, like the “Max Plan,” can cover upgrades like code violations, plumbing in concrete, and external pipe leaks.
When placing a claim, homeowners usually pay a service call fee, ranging from $75 to $100 per visit. Considering the high cost of replacing major home systems, this predictable expense helps reduce financial surprises.
Can You Get the Seller to Pay for a Home Warranty?
Absolutely! Negotiating for the seller to include a home warranty in your offer is a common strategy. Sellers often agree to this because it gives buyers peace of mind, making the home more attractive and reducing post-sale disputes. Plus, a home warranty can protect the seller from unexpected repair costs while the home is listed.
Pro tip: When making an offer, ask your agent to request a seller-paid home warranty as part of the closing terms.
What Does a Home Warranty Include?
Most home warranty plans cover the essentials:
Kitchen appliances (ovens, dishwashers, built-in microwaves)
Plumbing systems (leaks, breaks, and stoppages)
Electrical systems (wiring, panels, and circuit breakers)
HVAC units (heating and air conditioning)
Water heaters and garage door openers
Optional add-ons can include coverage for pools, spas, well pumps, and even structural components. First American Home Warranty’s “First Class Upgrade” offers expanded protection, including re-key services and discounts on new appliances.
Finding the Right Plan
When choosing a home warranty, consider your home’s age, the condition of appliances, and your budget. Plans like those from First American allow customization with optional coverage for major systems, pest control, roof leaks, and more. Knowing what’s covered (and what’s not) ensures you get the protection you need.
A home warranty can provide invaluable peace of mind, protecting both buyers and sellers from unexpected repair bills. As you navigate the home-buying journey, consider negotiating for a seller-paid plan or investing in a comprehensive coverage package for your new home.
