Home warranties
Is a Home Warranty Worth It? Home Warranty vs. Homeowners Insurance
Is a home warranty worth it? Learn how home warranties differ from homeowners insurance, common exclusions, service fees and caps, and smart alternatives.
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Home warranties
A home warranty is a service contract, not insurance. It can help with some appliance and system repairs, but caps, exclusions and service fees decide whether it pays off for you.
Frequently asked questions
Is a home warranty the same as homeowners insurance?
No. Homeowners insurance pays for sudden damage like fire or wind. A home warranty is a service contract that may pay to repair or replace covered systems and appliances that break from normal wear.
Do I have to buy a home warranty?
No. Home warranties are optional. Sellers sometimes include one at closing, and lenders do not require them.
What should I read before buying one?
Read the full contract, not just the brochure: what is covered, the exclusions, the service fee per visit, coverage caps per item, and how the company chooses and schedules technicians.
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