Are home warranties worth it?

A man working on a printed ledger


Many homeowners aren't sure what home a warranty covers or how it is different from their insurance policy. So it’s tough to decide whether it’s worth the warranty cost..

But going without a warranty protection plan can be an expensive gamble.


What does a home warranty cover that homeowners insurance does not?

Unlike insurance, warranty coverage isn't required by your bank when you get a mortgage, so it might get missed on the "must-do" list for first-time homebuyers or be overlooked on the annual once-over you give your insurance coverage. Consequently, many homeowners don’t realize they have glaring gaps in their home’s coverage.

A homeowners insurance policy covers major damage, theft, loss or liability associated with your home. But a home warranty covers situations your insurance doesn’t — the cost of repairing or replacing your major appliances and home systems. If anything — from your built-in microwave to your plumbing — gives you problems due to everyday wear and tear or sudden malfunction, warranty coverage comes to the rescue.

While an insurance policy has your back for major disasters, it won’t cover you for these day-to-day mishaps.


How much can you expect your home warranty to save you on household repairs and replacements?

Appliance repair could cost you thousands. But a warranty plan from Cinch Home Services can cost as little as $35 per month. While costs vary based on where you live and the amount of coverage you need, the potential expense of replacing one of the major appliances your family relies on daily far outweighs the monthly payments on an annual warranty plan.

With coverage, when something goes wrong for a covered item, you only need to pay a one-time service fee to the service provider instead of absorbing the entire cost of the repair. Plus, the warranty company connects you to a qualified contractor when you make a claim, so you don’t need to worry about overpaying for repair or getting shoddy service.

On top of offsetting upfront repair costs, a warranty plan also injects predictability into your home maintenance costs. It makes sense to put money aside every month to save for either regular or unexpected home repairs, and a warranty service contract is one way to ensure you’re allocating some of your budget to home maintenance every month.

Real estate agent Mark Strickland says that if you don’t keep up with regular maintenance on your home, it “could easily lose 10 percent of its appraised value.” Even newly built homes that sometimes come with builder home warranties (which don’t usually cover appliances) can require unexpected repairs soon after moving in.

Investing in a home warranty plan not only saves you money on the up-front repair costs of your appliances but also makes you money when it’s time for you to sell your home.


Why getting a home warranty is particularly worthwhile when buying a home

Maintenance is one of the hidden costs of owning a home. First-time buyers are often surprised by the extra expenses that sneak up on them after their closing. Besides adding stress to your life, unexpected maintenance issues can seriously gouge your pocketbook.

Since home inspections don’t usually include assessment of appliances, you might feel like you’re making a blind bet on the condition and lifespan of the appliances when you move into your new house. That’s why it’s best not to wait until you’ve settled in or had your first big maintenance scare to get a quote from a warranty company.

Wrapping a service contract into your house closing so that you have coverage from the minute you take ownership is a really good idea.


Dangers of not getting a home warranty

Without warranty coverage, you might try to push off maintenance costs or avoid repair when it poses a real challenge to your budget. But appliances, like your fridge, and home systems, such as your HVAC, are the kinds of repairs that cannot wait. You need them up and running right away.

For example, if you live in a flood zone and your sump pump goes down, you can’t leave it to chance that you’ll have extra money on hand to repair it. And you likely can’t tackle maintenance or repair needs yourself on complex systems, like your air conditioner or plumbing, or essential appliances, like washers and dryers. Without a warranty, you risk major up-front costs plus the extra hassle of trying to find reputable and affordable service providers. Supplementing your standard insurance with a home warranty plan takes both the guesswork and financial pressure off maintaining your appliances and home systems.


Protect yourself with an affordable home warranty plan

Whether you are purchasing your first home or are a long-time homeowner, it makes financial sense to consider a home warranty plan in addition to your insurance policy.

Here are some key reasons why a warranty plan is definitely worth it for homeowners:

  • Home warranty plans cover situations that insurance doesn’t.
  • Investing a few hundred dollars in a warranty can save you thousands in up-front repair costs for appliances.
  • A warranty company sends a vetted, licensed repair contractor to your home as soon as you file a claim, saving you the time and stress of arranging one yourself.
  • A home warranty plan offers peace of mind that your home is covered no matter what kind of unexpected repair or maintenance issue crops up.

Millions of Americans have already saved money, time and a whole lot of headaches by investing in a home warranty plan from a warranty company like Cinch Home Services. Discover the Cinch difference, and shop our plans today.

A home warranty not only saves you money on the up-front repair costs of your appliances but also makes you money when it’s time for you to sell your home.