Just Bought a Home? How to Choose a Home Warranty for Your First Year

Your first year in a new home comes with plenty of surprises. You don't know how old the water heater really is or when the AC was last serviced. That's why many new owners look at home warranties.

Seller-paid vs. buyer-paid plans

Sellers sometimes include a one-year warranty as part of the deal. If yours did, find the contract, note the start date and save the provider's phone number. If not, you can usually buy a plan at closing or any time after.

What to look at first

• The age and condition of major systems, noted in your inspection report.
• Whether the plan covers unknown pre-existing conditions.
• Coverage caps for HVAC and plumbing, which tend to be the most expensive repairs.
• Whether there's a waiting period.

Use your inspection report

Your inspector likely flagged items that are older or showing wear. Ask providers how they'd handle those specific items. Read our guide on pre-existing conditions for the details.

Plan for renewal

Many first-year plans renew automatically at a different price. Review your renewal notice and compare options before it renews.

Check the provider

Make sure the company is licensed or registered where required in your state using our state regulation guide. Then compare home warranty quotes to see what's available in your ZIP code.