Is a home warranty worth it?

Whether a home warranty is worth it depends on your situation, budget, and risk tolerance. Home warranties typically cover repair or replacement of major systems and appliances like HVAC, water heaters, and kitchen appliances when they fail from normal wear. They charge an annual premium plus a service call fee each time you file a claim. The value depends on the age and condition of your home systems, whether you have savings set aside for repairs, and the specific coverage and exclusions in the policy. Some buyers negotiate for the seller to provide a warranty as part of the purchase contract. Read the contract carefully, as coverage limits and exclusions vary widely between providers.