What Do You Get with a Home Warranty?

Restoration 43
May 18
3 min read

Updated: Jul 8

By now, you’ve likely seen the ads, gotten the emails and maybe even hung up on a few robocalls going on and on about the benefits of a home warranty. Are they actually worth getting, though? Let’s take a closer look at home warranties and what they really have to offer. This will help you to decide if a home warranty is right for you or if it would just be a waste of your money.

As a trusted Realtor in Texas, I’m here to shed some light on whether a home warranty might be a smart move for you.

What Is a Home Warranty?

First of all, just what is a home warranty? This is an important question, because many people don’t actually know what a home warranty is for. A common assumption is that a home warranty is like some version of homeowners’ insurance, perhaps offering short-term coverage after closing on a home. While the timing aspect is pretty close, a home warranty is actually significantly different than a homeowners’ insurance policy. Instead, a home warranty covers certain things within the home to allow for their replacement in case they break soon after buying the property. Think: HVAC systems, water heaters, kitchen appliances, and more.

so, Do You Need a Home Warranty?

Whether you actually need a home warranty or not is kind of a big question.

it depends. If you're buying a new construction home, many of your systems and appliances are already under manufacturer warranties. However, if you're purchasing a pre-owned home, especially one with aging systems, a home warranty could offer peace of mind and protect your investment.

As with any decision, it comes down to cost vs. benefit. Plans typically range from $400–$900 annually, and in some cases, I can even negotiate for the seller to cover this as part of the deal. The right home warranty can be a good buy, but it’s worth looking at the cost and coverage to make sure the plan is actually what you need.

General Comparison Summary

Provider	Best For	Monthly Cost	Service Fee	Standout Features
Liberty Home Guard	Customization & Customer Service	$49–$59	$65–$125	42 add-ons, 60-day workmanship guarantee
American Home Shield	Comprehensive Coverage	$39.99–$79.99	$75–$125	$5,000 HVAC cap, roof-leak coverage
First American Home Warranty	Appliance Coverage	$45–$70	$75–$125	Efficient claims process, optional add-ons

What Does a Home Warranty Include?

The specifics of what a home warranty covers can vary a bit depending on the specific home warranty plan you purchase. In general, though, home warranties are designed to cover major systems and appliances within the home. When you’re buying a home, your home warranty will have you covered if something like the refrigerator or water heater breaks down a few months after you move in. In most cases, major systems such as plumbing and HVAC are covered as well. The policy functions like most standard warranties, allowing you to get needed repairs or replacements while the warranty is still in effect.

What’s Not Covered?

Unless it’s specifically mentioned in your home warranty, general home repairs or other maintenance are not included in the warranty. This means that something like a broken window, a weak spot in the floor or peeling paint would have to be repaired as an out-of-pocket expense if they aren’t covered under your homeowners’ insurance. The home warranty is designed to cover only your new home’s appliances and major systems.

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How Long Do Home Warranties Last?

Again, the term of a home warranty depends on the specific warranty policy you take out. One of the most common warranty periods is one year, giving you a full year’s worth of peace of mind after you take out the policy. Depending on your needs, however, you may be able to get a home warranty for shorter or longer periods as well.

Can You Add Extra Services?

Depending on the home warranty provider you choose, there may be add-ons that you can include with your warranty service for an additional cost. These can include things like swimming pool maintenance and repair, well maintenance and expanded services such as maintenance tune-ups for your HVAC system. Some providers even use add-ons to create customizable warranty plans, offering up a basic general plan and then expanding it to meet your needs by letting you add only the features you want.

My goal is always to ensure you feel informed, confident, and supported long after closing day. Whether you’re a first-time buyer or upgrading to your forever home, I want you to know all the options available to protect your investment.

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Still unsure if a home warranty is right for you? Reach out to me, Alex Watson, your trusted Realtor, and I’ll help you evaluate whether it fits your specific home and lifestyle.