Is a Home Warranty Worth It? An Honest Way to Decide

There's no universal answer to whether a home warranty is worth it. It depends on your home, your budget and how you like to handle surprises.

When a warranty tends to make sense

• Your major appliances and systems are out of manufacturer warranty.
• You just bought a home and don't know the history of its equipment.
• A sudden repair bill of several hundred to a few thousand dollars would be hard to absorb.
• You'd rather have one phone number to call than find and vet contractors yourself.
• You own a rental and want predictable maintenance costs.

When it may not be the best fit

• Most of your appliances are new and still under manufacturer warranty.
• You have a healthy emergency fund and are comfortable choosing your own contractors.
• Your home has equipment that's commonly excluded, such as very high-end or commercial-grade appliances.

Run the numbers

Add up a year of plan payments plus the service fees you'd expect to pay. Compare that with what typical repairs might cost you. Remember that coverage caps and exclusions can affect what you'd actually receive.

Read before you buy

Review a sample contract, especially exclusions, caps and cancellation terms. Check that the provider is licensed or registered where required using our state regulation guide.

Compare before you commit

Prices and terms vary a lot between providers and ZIP codes. Our free tool lets you compare home warranty quotes side by side with no obligation.