Skip to main content

    Home Warranty

    Predictable repairs cost. Worth it?

    What is home warranty?

    • Covers home appliances + systems.
    • NOT same as homeowners insurance.
    • $50-$80/month + $75-$125 service fee.
    • Covers HVAC, plumbing, electrical, appliances.
    • Replaces expensive repairs.
    • Especially older homes.

    Major providers

    • American Home Shield — largest.
    • Choice Home Warranty.
    • First American Home Warranty.
    • Cinch Home Services.
    • Liberty Home Guard.
    • Compare BEFORE buying.

    Worth it when

    • Older home (10+ years).
    • Aging HVAC + appliances.
    • Don't have plumber/electrician you trust.
    • Want predictable budget.
    • Seniors valuing peace of mind.
    • Limited mobility for DIY.

    Drawbacks

    • Companies often deny claims.
    • You don't pick the contractor.
    • Cheap parts replacements.
    • Pre-existing exclusion.
    • Many require maintenance records.
    • Self-insurance often better.

    Math the value

    • $60/month × 12 = $720/year.
    • + $100 service fee per call.
    • HVAC replacement = $5,000-$10,000.
    • Some seniors break even.
    • Many pay more in premiums than save.
    • Self-insurance often wins.

    Self-insurance approach

    • Save $60/month in "home repair fund."
    • Build to $5,000+ over time.
    • Pay actual repairs from fund.
    • Excess stays your money.
    • You pick best repair person.
    • No claim denials.

    Self-fund unless aging home

    For most senior homeowners, putting $60/month in a home repair fund beats buying a home warranty. You control quality of repairs + keep extra funds. Home warranties make sense only if you have an aging home with multiple systems near failure. Read reviews carefully — many homeowners find warranties frustrating.