It’s no secret that buying a house is an investment, and it’s one that you want to protect. By purchasing a home warranty, you know you’re covered should anything happen to your appliances or home systems.

What is a Home Warranty?

A home warranty is a service contract that pays for the repair or replacement of the appliances and home systems that are covered in the contract. These items typically include kitchen appliances, electrical, plumbing, and HVAC systems. These warranties do not cover any structural features of a home. Home warranties can provide homeowners with peace of mind by protecting their budget from unexpected expenses that can arise from breakdowns or malfunctions of appliances or systems in their homes. With a home warranty, you pay a monthly or annual premium, and in exchange, the warranty company will repair or replace covered items that break down due to normal wear and tear.

Is a Home Warranty Worth It?

The cost of a home warranty can be anywhere between $300 and $600 a year, sometimes, even more, depending on the type of coverage you require. A homeowner should also be prepared to pay a fee for service calls throughout the year (depending on the contract).

Without a home warranty, you could spend thousands of dollars repairing and replacing the systems in your home. Ultimately, deciding whether or not a home warranty is worth the cost depends on your individual situation and needs. Consider the age and condition of your appliances and home systems, as well as your budget and risk tolerance. If you have older appliances or systems that are more likely to break down, a home warranty may provide valuable protection. However, if your appliances and systems are newer or covered by a manufacturer’s warranty, a home warranty may not be necessary.

Average Approximate Replacement Costs

  • Central Air Conditioning: $3,882 – $7,903
  • Furnace: $2,809- $6,795
  • Water Heater: $847 – $1,703

Costs via HomeAdvisor.com

Who Should Consider a Home Warranty?

Individuals purchasing a home that has been previously owned should consider a home warranty, especially if the home inspection revealed that the home systems and appliances are nearing the end of their lifespan.

When purchasing a home warranty, it’s important to understand the terms of the contract, how long the coverage lasts, and what it will and will not cover. Additionally, it’s important to note that home warranties are not the same as homeowners insurance, which covers damage caused by events such as fire, theft, or natural disasters. Before purchasing a home warranty, make sure you understand what is covered and what is not, as well as any limitations, deductibles, and service fees associated with the warranty.

In addition to protecting your investment, a home warranty can also be beneficial when selling your home. A transferable home warranty can give potential buyers peace of mind knowing that they will be protected from unexpected repair costs for a certain period of time after purchasing the property.

Pros & Cons of a Home Warranty


  • Peace of mind when purchasing a home with used appliances and older systems
  • The convenience of making a phone call to have an appliance or home system repaired or replaced
  • Alleviates the worry of hiring a trusted technician


  • Some companies have dollar limits per repair, per year
  • If the system or appliance hasn’t been properly maintained, the home warranty company may deny the repair/replacement request
  • Appliance and system repairs and replacements are not always covered depending on the circumstance
  • You may not have a say in what make or model of the replacement is

When purchasing a home warranty, be sure to do your research on the company you are purchasing the warranty from. When shopping around, look at the various premiums, exclusions, and caps on benefits.

Our expert REALTORS® at Lamacchia Realty can be your guide and help you navigate through the home warranty process. We guide buyers and sellers to their success every day across Massachusetts, New Hampshire, Connecticut, Rhode Island, Maine, and South Florida! Give us a call today, and let us help you accomplish all your real estate goals!