Derek Morgan
Derek Morgan
Roof is Leaking or Pipe Rupture at Home
Derek Morgan
Derek Morgan

    Understanding Home Warranties: Coverage and Benefits for Buyers

    Explore the intricacies of home warranties, their coverage, and benefits. Get informed and make better decisions when buying a house with our comprehensive guide.

    What is a Home Warranty?

    A home warranty is essentially an agreement that you, as a homeowner, enter into with a home warranty company. This contract is your safety net against costly repairs and replacements of major systems and appliances within your home, including but not limited to your plumbing, HVAC, and electrical systems. Picture this as your financial defense mechanism after you've made your home purchase. It's a particularly useful tool for those moving into older homes or those that may not have received the best maintenance.

    Coverage: What Does a Home Warranty Cover?

    Understanding what a home warranty covers is crucial. Home warranties cover the repair or replacement of major home systems and appliances that fail due to wear and tear. This includes, but is not limited to:

    • Plumbing systems

    • Electrical systems

    • Heating and cooling systems

    • Kitchen appliances

    • Washer and dryer

    • Garage door openers

    Some home warranty plans cover additional items such as pools, spas, well pumps, and septic systems for an extra fee. Remember, home warranties do not cover everything in your home. They are not a substitute for homeowners insurance, which covers damage from accidents, fires, and theft.

    For more information, read Home Warranty Guide: Boosting Buyer Confidence, Increasing Property Value, and Ensuring a Smooth Property Sale.

    Flooded kitchen

    Key Benefits for Buyers

    Peace of Mind

    A significant benefit of home warranties is the peace of mind they provide to homeowners. It's not uncommon for significant appliances or systems to give up the ghost unexpectedly, especially if they've been around the block a few times. This is where the home warranty comes in. It serves as your backup, assuring you that you won't be tackling these potential problems single-handedly. The warranty company is responsible for handling and covering repair costs (minus the service fee). This assurance can be invaluable, especially during the first few years of homeownership when you're still getting familiar with your new home.

    Budget Protection

    Unexpected home repair costs can be high and often arrive at the most inconvenient times. From a faulty HVAC system in the middle of summer to a broken refrigerator full of groceries, homeowners can find themselves facing sudden expenses that strain their budget.

    A home warranty can serve as a financial buffer against these surprises. Instead of paying the entire repair or replacement cost, you would typically pay a predetermined service call fee, which is significantly less. This fee is set out in your warranty agreement and does not change based on the actual repair or replacement cost. This budget protection can make financial planning easier and less stressful.


    Another often overlooked advantage of a home warranty is convenience. When a covered appliance or system breaks down, you won't have to go through the process of seeking out reputable service professionals and gathering quotes. In a world where time is a premium, the last thing any homeowner wants is to be knee-deep in quotations and reviews trying to find a reliable repair service. If an essential system breaks down, you need it fixed yesterday, and this rush can lead to unnecessary stress. Having a home warranty smooths out this process. One call to your warranty provider, and they'll have a service technician scheduled to handle the issue.

    Increased Home Value

    Finally, having a home warranty can increase your home's value should you decide to sell. Properties with transferable home warranties are often more appealing to potential buyers. The reason is simple: a home warranty can give buyers confidence that they won't be immediately saddled with significant repair costs.

    The warranty acts as a safety net, which can help to speed up the selling process and even potentially increase the final selling price. If you're considering selling, including a transferable home warranty in your offering can tip the scales in your favor. In a buyer's market, this added security can make your property more appealing, potentially speeding up the sale and maybe even increasing your profit margin. It's a beneficial situation for all involved, but it's key to understanding the specifics of your warranty plan. 

    Check out our episode on The Unrealest podcast, where CEO & Founder of Unreal Estate, Kyle Stoner, and guest, Matan Slagter, discuss how to be prepared for when disaster strikes: Are you really in good hands with homeowners insurance? with Matan Slagter on the Unrealest

    Is a Home Warranty Right for You?

    Wrapping up, there's no denying that a home warranty can be a boon for homeowners. It can save you from unexpected expenses, provide you with serenity, and even boost your home's value. However, deciding whether a home warranty is right for you should be a personalized choice. Think about your home's age, your appliances' state, your readiness to deal with surprise repair costs, and your ease in managing repair services. A home warranty is only beneficial if it suits your situation and meets your specific needs. Always review the contract details before signing on the dotted line. Suppose you're a first-time homebuyer or an experienced homeowner. In that case, understanding the ins and outs of home warranties can help you make savvy decisions that can keep your wallet and sanity intact in the long haul.

    If you're ready to buy a home, visit and learn more about how we make buying your home simpler, faster, and more affordable than ever. Find listings near and far at to find your dream home today.

    We'd love to hear your thoughts about this article and our blog. Let us know how we did by completing the Unreal Estate Blog Feedback Survey.

    Unreal Estate stacked logo



    Updated January 2023: By using this website, you agree to our Terms of Service, and Privacy Policy.

    ⁠Unreal Estate holds real estate brokerage licenses under the following names in multiple states and locations:
    Unreal Estate LLC (f/k/a, LLP)
    Unreal Estate LLC (f/k/a USRealty Brokerage Solutions, LLP)
    Unreal Estate Brokerage LLC
    Unreal Estate Inc. (f/k/a Abode Technologies, Inc. (dba
    Main Office Location: 1500 Conrad Weiser Parkway, Womelsdorf, PA  19567
    California DRE #01527504
    New York § 442-H Standard Operating Procedures
    TREC: Info About Brokerage ServicesConsumer Protection Notice


    If you are using a screen reader, or having trouble reading this website, please call Unreal Estate Customer Support for help at 1-866-534-3726 
    Open Monday – Friday 9:00 – 5:00 EST with the exception of holidays.

    *See Terms of Service for details.

    LinkedIn Social IconInstagram social iconFacebook social icontwitter social iconYoutube Social Icon

    © 2023 Unreal Estate Inc. All Rights Reserved.

    Unreal Estate certified trust badge
    LinkedIn Social IconInstagram social iconFacebook social icontwitter social iconYoutube Social Icon