Home Buyers Warranty: Why It’s Essential for New Homeowners


Homeownership is generally a wise investment but can get expensive when repairs are needed. It’s an issue that can impact owners who buy an existing home instead of new construction. With that in mind, many new owners purchase a home warranty that offers protection against sudden appliance or system failures. A warranty provides peace of mind, ensures quality repairs or replacements, and helps owners minimize financial strain.  

A Home Warranty Vs. Home Insurance

Although home insurance is not legally required, most owners buy it to cover the costs of emergency damage. A home warranty also provides protection, but the coverage differs from insurance. Each type of policy spells out its coverage, deductibles, and limits. 

Insurance covers damages caused by events beyond the owner’s control. For instance, if a plumbing leak causes flooding, a homeowner’s policy will pay to repair the damage but will not cover the cost of plumbing repairs. In contrast, products like a 2-10 Home Buyers Warranty can help when appliances and systems break down due to age and everyday use. A home warranty often picks up where expired manufacturers’ warranties leave off.

What a Warranty Can Cover 

Home warranty providers offer a range of products, allowing customers to choose coverage to fit their budgets and needs. A new homeowner who purchases a recently renovated older house may need minimal coverage because systems and appliances are still under manufacturers’ warranties. But, those who buy existing houses with aging appliances and systems benefit by adding extra coverage to cover expected breakdowns.  

According to Forbes, a home warranty covers costs to service, repair, or replace specific home systems. Warranties pay when covered items fail unexpectedly due to wear and tear, a manufacturer’s defect, or other related problem. Clients may choose from various coverage levels.  

Homeowners frequently want coverage for large home systems such as plumbing, electrical, HVAC, and water heaters. Some plans cover refrigerators, stoves, washers, and dryers. Companies typically offer optional coverage for home spas, pools, extra refrigerators, and even septic systems.  

How a Warranty Works 

Homeowners pay a premium for a home warranty. If they want to continue coverage after the first year, customers renew the warranty and continue to pay an annual premium. Depending on the size of the home and warranty’s scope, a premium may range from hundreds to thousands of dollars. 

At the time of purchase, a warranty provider explains the deductible cost and terms of service. Deductibles generally vary from $50 to $125 per service call. But, once a client pays the deductible, the warranty covers repair or replacement costs.

New Homeowners Can Face Repair Costs 

When buyers choose existing homes, pre-sale inspections may show that some appliances and systems are aging. However, there is no way to gauge exactly when they might fail. As a result, a new owner can face an expensive breakdown within weeks or months of moving in, straining their budget. According to Bankrate, a home warranty can help owners prepare for these costs.

The costs associated with buying a home warranty and paying deductibles is usually a fraction of the actual home repair costs. Replacing a failed central air conditioning system can cost several thousand dollars compared to a few hundred dollars when under warranty. Buying a home involves a substantial cash layout, so most new owners are on a careful budget for a few years. A warranty can help ease the financial strain and keep them on budget.  

Buying a new home is an exciting but often expensive process that can leave new owners on a tight budget. Unexpected appliance or system breakdowns may create financial strain. A home warranty offers an affordable way to protect against unexpected repair costs. If a covered item breaks down, homeowners make a call, and professionals are dispatched to evaluate the situation and provide repair or replacement. 

Written by Megan Taylor
Megan is a beauty expert who is passionate about all things makeup and glam! Her love for makeup has brought her to become a beauty pro at Glamour Garden Cosmetics.