Published On: Tue, May 16th, 2023

Things to Consider Before Getting A Home Warranty for Your New Home

Home warranty – often confused with home insurance and a term often tossed around during buying and selling of a house – is a one-year agreement that covers the repair and replacement of home appliances and systems. It provides easy repair and replacement services for your appliances; you should always ensure that your seller has included it with the purchase.

According to Cinch Home Services, a company providing home warranty in Columbus, Ohio, “With a home warranty plan, you no longer need to dread the next failed appliance or home system. You know you’re covered, and you pay your deductible at the time of the service request.” It’s undoubtedly the best security for your home appliances. But even so, before getting a home warranty, ask yourself the following important questions to ensure that you’re making the right decision.

photo/ mohamed Hassan

The Need for a Warranty

If you have home insurance, don’t dismiss the idea of getting a home warranty. The former won’t cover the costs of replacing or repairing your home appliances in case of breakdown, and that can be costly. If your seller hasn’t included a home warranty plan in the sale, you may purchase one from home warranty companies later on. It’s always better to opt for a home warranty if you want to keep your home appliances and systems protected.

Contract Coverage

Understanding the coverage is essential before signing a home warranty contract. Make a list of all your home appliances and systems that might need repair or replacement soon and check if they are included in the contract. Include any expensive items that you want to protect. The terms tend to have exclusions or loopholes, so read through the terms and conditions to understand what’s covered and what’s not. Some policies may not cover damage caused by user error, such as improper handling or using appliances in unspecified ways. If you have questions or doubts about a clause, clear them before signing the contract.

Repair vs. Replacement

Your contract can provide repair for some items and replacement for some, so understand it well before signing. While some contracts only offer partial coverage, others may cover full replacement costs. Read through the terms and conditions of the contract carefully to avoid surprises. Mark the appliances that can be repaired or replaced, and the ones excluded from coverage. If an item falls under the exclusion list, it won’t be replaced under the warranty contract. If too many important items are listed under exclusion or aren’t guaranteed by a replacement, you can go for another company that is a better fit.


Home warranty typically costs several hundred to a thousand dollars per year. Payment can be made upfront or in monthly installments. The property type may affect the cost, but the property’s size may not have an impact. Newer homes tend to have higher cost, and any improvements or modifications will also bump it up. Apart from the warranty cost, each service request costs around $60 to $100 for repair or maintenance, and additional services may require an extra charge. These numbers will further help you determine whether you want home warranty for your home.

Contract Limitations

Home warranty contracts tend to have restrictions and monetary limits set by the service company. Monetary limits are the maximum amounts that the warranty will cover for appliance repair or replacement. There can be restrictions on specific appliances not covered under the contract. Some companies have maximum limits on all repairs and replacements, whereas others offer unlimited coverage. Be sure to choose a contract that fits your budget and covers your needs.

Company Reputation

A company with a good reputation is bound to provide good service, so ensure it before signing a contract. Ask the company for references. Look for reviews online and check the company’s ratings on reputable websites. Sign with them only if they’re trustworthy and have a good track record of providing excellent service to customers. Your appliances and home systems are costly and an integral part of your home, and poor maintenance can cause more damage. So, beware of scammers and learn how to identify good companies.

Company Expertise

A reputed company earns their reputation through expert staff and steady service. So, don’t forget to consider professionalism and expertise when choosing a home warranty company. Ask the company to provide details about their licensed technicians before signing a contract. Many states require companies to hire only licensed technicians for home maintenance work to ensure quality service and reduce the risk of mishaps. Experienced staff will quickly understand your problems and provide top-notch service without any hassle. Hiring a reputable and capable company will protect your investment and also give you peace of mind.

Buying a home is an important milestone for every homeowner, and it’s natural for us to get insurances and warranties to keep the home and belongings safe and covered. There are many things you need to look out for before making such an important investment, and home insurance is one of them. However, choosing the wrong company can create more problems than solutions. Home warranties are not one-size-fits-all solutions, and various companies offer different coverage options. So, take your time to find a company that best suits your needs.

Author: Kayla Rench

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