Is buying a home warranty a good idea?

Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Q:  We are getting ready to buy a home and wonder if having a home warranty would be a good idea?   What do you think?   Is it expensive?

Home WarrantyWe do recommend home warranty insurance, and we could help 
you determine which company offers the best coverage for the home you have in mind.  A home warranty can be very useful for those buying older homes on the Treasure Coast of Florida. In fact for many of our customers we will pay for the first year of your home warranty should you want it.

The home warranty insurance is fairly inexpensive, typically ranging from $250 to $400 a year, depending on the coverage you want. When a repair or replacement is necessary, the homeowner pays a trade fee, which is usually less than $100.

It pays all or part of the cost to repair or replace an item in your newly purchased home. Usually, the item will be replaced if the contractor hired by the company has determined that it's not repairable.

Because the last thing you want to worry about after closing on a home is what could break or malfunction, the insurance is a good idea. There are several warranty plans to choose from. Before choosing, it's important to make a list of each appliance and system that you want covered.

The National Home Service Contract Association, a nonprofit industry organization, says the best way to ensure a positive experience is for the company to provide the customer with clearly defined expectations of what a contract will cover.

For a quick reference remember the word PEACH: Plumbing, Electrical, Appliances, Cooling and Heating. Basic coverage does not include such things as the roof, windows, termite damage, or pre-existing conditions.

Sometimes the seller pays for the warranty coverage. It's to the seller's advantage to do so because it's a selling point. Further, the seller knows the new owner won't be calling after the closing if something breaks.

The policies are prepaid for a year in advance, at which time they expire or they can be renewed. Sometimes warranty companies compete with each other by offering discounted sales.


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Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ

GOOD MORNING GABE!  Real estate pros get asked this question alot!  It is critical to make sure clients know what is and isn't covered with a home warranty and if they purchase one to make sure it suits their specific needs! -- G

Feb 19, 2011 12:29 AM #1
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

Home warranties can certainly help a buyer feel more comfortable about making a committment to a house.

Feb 19, 2011 12:40 AM #2
Renée Donohue
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate - Las Vegas, NV
Las Vegas Real Estate Broker -

Very thorough explanation on WHY one should think about a home warranty!  You knocked the ball out of the park Gabe!

Feb 19, 2011 06:42 AM #3
Jeff Markell
Ladera Ranch, CA
Mortgage Loan Originator | NMLS 224196

Well written Gabe. I'm a big believer in home warranty protection. It does help when they can choose which appliances and systems to cover.

Feb 19, 2011 11:33 AM #4
Laura Giannotta
Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ
Your Realtor Down the Shore!

I've had some bad experiences with home warranty companies.  I've found a new one, and hope my clients luck will be better with this one!  Good post Gabe!

Feb 20, 2011 11:14 PM #5
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for your comments, always appreciated.

Jul 20, 2015 05:35 AM #6
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Gabe Sanders

Stuart Florida Real Estate
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