Should You Get a Home Warranty?
A home warranty could lower your expenses for certain repairs, but you should weigh whether paying the premium is worth it.
 
 
Appliance repairs are expensive. Fixing your washing machine may cost as much as $450, and replacing complex parts, such as refrigerator compressors, may run up to $1,250, according to home-services website Angi. A home warranty could offset those expenses, but it’s important to understand what it includes and whether purchasing one makes sense for you.
A home warranty is a service contract that covers the cost of repairing and replacing major appliances that have been damaged by wear and tear. Some contracts also cover your plumbing, electrical, and heating, ventilation and air conditioning (HVAC) systems. These costs aren’t typically covered by homeowners insurance, which pays for damage to your home’s structure or your personal property. Premiums vary, ranging from $25 to $150 a month, depending on the level of coverage, says Viktoriya Cully, director of underwriting, warranty and specialty risk at AmTrust Financial.
In addition to the premium, you can expect to pay what’s known as a trade service call fee, which is a fixed charge you incur every time you request a service call. This fee, which is similar to an insurance deductible, averages $75.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
 
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Should you buy a home warranty?
A home warranty may be beneficial if the manufacturer’s warranties on most of your appliances have expired or you have older appliances that break down often, says Robert Washington, a real estate broker with Savvy Buyers Realty in St. Petersburg, Fla. However, if you have a newly built home or brand-new appliances that are still under the manufacturer’s warranty, a home warranty probably isn’t worthwhile. You should also consider whether you’re better off putting the money you would spend on premiums in an emergency fund, which would earn interest and be available for other expenses, too.
Because home warranty providers send service technicians to you, you won’t have to worry about finding someone to make repairs. That can be a drawback, however, if you’re not happy with your provider’s technicians. In addition, warranty companies often impose limits on the amount they will pay for repairs and replacements, so you may end up with a lower-quality appliance than you would buy on your own.
If you decide that purchasing a home warranty may be worthwhile, you can search for providers and check customer reviews on the websites of the Better Business Bureau, Angi, BestCompany and Trustpilot.
Most contracts require you to wait 30 days from the time you obtain the warranty before filing a claim. This measure is designed to prevent customers from filing a claim for a preexisting problem. When you file a claim, the warranty company will typically send a technician within two days to diagnose the problem. If it’s a minor issue, the technician will usually fix your appliance on the spot. If more work is required, you’ll have to schedule follow-up visits, and you’ll be charged a service fee for each one.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Ella Vincent is a personal finance writer who has written about credit, retirement, and employment issues. She has previously written for Motley Fool and Yahoo Finance. She enjoys going to concerts in her native Chicago and watching basketball.
- 
 The Original Property Tax Hack: Avoiding The ‘Window Tax’ The Original Property Tax Hack: Avoiding The ‘Window Tax’Property Taxes Here’s how homeowners can challenge their home assessment and potentially reduce their property taxes — with a little lesson from history. 
- 
 Is Mint Mobile's Home Internet a Game-Changer or Just Another Option? Is Mint Mobile's Home Internet a Game-Changer or Just Another Option?Mint Mobile recently unveiled its new home internet service. We break down how it works so you can determine if it's a great value for your needs. 
- 
 Is Mint Mobile's Home Internet a Game-Changer or Just Another Option? Is Mint Mobile's Home Internet a Game-Changer or Just Another Option?Mint Mobile recently unveiled its new home internet service. We break down how it works so you can determine if it's a great value for your needs. 
- 
 How to Add Your Driver’s License or State ID to Google Wallet How to Add Your Driver’s License or State ID to Google WalletStore and use your digital ID securely on your Android device for TSA, age verification and more. 
- 
 Where You Choose to Stash $100k Now Comes with a Big Opportunity Cost Where You Choose to Stash $100k Now Comes with a Big Opportunity CostThe Fed recently cut rates. Here's where to maximize your savings while rates remain higher. 
- 
 The Social Security Earnings Test: Know This Rule Before Working in Retirement The Social Security Earnings Test: Know This Rule Before Working in RetirementWhen you work and collect Social Security benefits before your FRA, you are subject to the Retirement Earning Test that could result in a temporary reduction of your benefits. 
- 
 I'm a Government Employee and Need to Get By Until the Shutdown Ends. What Can I Do? I'm a Government Employee and Need to Get By Until the Shutdown Ends. What Can I Do?The second-longest shutdown in history is leaving many federal workers with bills due and no paycheck to cover them. Here's what you can do to get by. 
- 
 CMS Brings Back Furloughed Staff for Medicare Open Enrollment Lifeline CMS Brings Back Furloughed Staff for Medicare Open Enrollment LifelineThe government has recalled approximately 3,000 workers to assist with Medicare and ACA Marketplace Open Enrollment. 
- 
 This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had Holes This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts. 
- 
 How Prepaid Verizon Phone Service Works and When It's a Smart Choice How Prepaid Verizon Phone Service Works and When It's a Smart ChoiceExplore the differences between Verizon Prepaid and Verizon Postpaid plans — costs, perks, flexibility and when going prepaid makes sense.