Picture this...You just moved into a new home and within days the AC is out. Or you just unpacked all your moving boxes and the furnace goes out in the dead of winter. Moving is already something that can be difficult and these little problems have the potential to add up and be quite expensive and frustrating.

Purchasing a home warranty can help to help alleviate some of those financial burdens that accumulate when a home system or major appliance malfunctions. Here are some pros and cons of a home warranty and how to know if purchasing one may be worth it for you:

Home Warranty vs. Home Insurance

You may be wondering what a home warranty is and how it differs from an insurance policy. Depending on the plan, a home warranty includes the coverage or replacement of major appliances such as electrical, plumbing, heating, AC units, large kitchen appliances, etc.

On the contrary, home insurance covers the damages that are made by unexpected events such as fires, natural weather.

Pros of a Home Warranty

When considering if purchasing a home warranty is right for you, here are some pros to consider:

  • Peace of mind: One of the greatest benefits of a home warranty is peace of mind. It is a great way to provide homeowners with a sense of financial security against unexpected/expensive home repairs. Also, if you are new to an area, you may not have established any relationships with mechanics or contractors. Your home warranty company usually finds those connections for you making it a bit easier for you.
  • Savings: Purchasing a home warranty can potentially allow you to save money on repairs that could originally cost you hundreds or even thousands of dollars. With a home warranty you are going to see fewer unanticipated costs.
  • Transferability: With some home warranties there is the possibility of transferability. This means that someone could purchase a home warranty then sell their property and transfer it to the new owner.


While there are a number of pros to purchasing a home warranty, there are potential cons that should be considered:

  • Wait time: If you are in need of a quick fix or have an emergency that needs to be fixed fast, there could be some delay. The wait times can sometimes be a bit lengthy for some home warranties. However, there are some ways to get around extended wait times such as setting up an online account to submit your claim faster.
  • Coverage: An issue with some home warranties is lack of coverage. Some people will purchase a warranty without thoroughly reading the exclusions of coverage. This could result in believing that there is coverage for something that does not actually have coverage. It’s important to fully read and inspect the limitations of your home warranty prior to purchasing.
  • Lack of Say: The home warranty companies often pick whether or not an appliance will be fixed or replaced, and the homeowner may have no say in their opinion. Also, let's say the company chooses to replace the appliance. The homeowner may not have a say in what make or model the replacement may be. So, there is the potential of lack of say so in repairs.

Choosing a company: Not all home warranty companies have the same protection plans and prices. If you find an affordable company that you want to work with it is important to try and select a provider that is easy to contact and has the right intentions.

Overall, there are a number of pros and cons to purchasing a home warranty. The most important thing to do is extensively explore your options and find the best fit for you and your home.

Here at Holland Homes Sales, we want the selling and purchasing of your next home to be a positive and stress-free experience. Our experienced professionals are here to make that possible! Contact us today!

Get in touch with us today to discuss your home needs! 334-332-7157 334-332-7157