What buyers need to know before choosing one
When you are buying a home, especially one that is not brand new, a home warranty may come up during the process. Some buyers like the idea of that extra protection. Others are not sure if it is worth the added cost.
The truth is, it depends on the house, the age of the major systems and appliances, and whether that extra layer of coverage would actually give you peace of mind.
What is a home warranty?
A home warranty is a home protection plan that may help with certain repairs or replacements when covered systems or appliances stop working from normal wear over time.
That may include items like:
- HVAC systems
- plumbing
- electrical
- water heater
- kitchen appliances
- washer and dryer
The easiest way to think about it is this. Homeowners insurance usually covers major damage like fire, storms, or theft. A home warranty is different. It is more about some of the everyday breakdowns that can happen as a home gets older.
Why some buyers choose one
If you have been renting, this is one of the adjustments that can catch you off guard. When something breaks, there is no landlord to call.
For many buyers, that first year of homeownership already comes with enough expenses. You have your down payment, closing costs, moving expenses, and all the little things that come with settling into a new home. So if the water heater goes out or the dishwasher stops working soon after closing, that can feel like a lot all at once.
That is why some buyers decide a home warranty is worth considering. It can add a little peace of mind during that first year, especially if the home has older systems or appliances that are still working, but are not brand new.
What a home warranty can be good for
A home warranty can make sense when:
- you are buying an older home
- the major systems or appliances are not new
- you want added protection during your first year
- you do not have a large repair fund set aside yet
- the seller is willing to include one as part of the deal
For some buyers, it is not just about the money. It is also about feeling a little less exposed during that first year of ownership.
What a home warranty may not be good for
This is the part buyers need to pay attention to.
A home warranty does not cover everything in the house, and it does not mean every repair will automatically be approved. Every company has its own rules, exclusions, service fees, and coverage limits. That is why I always want buyers looking at the actual plan details, not just the company name.
A home warranty may not be the best fit if:
- you expect it to cover every issue
- the home is newer and already has builder coverage
- you already have money set aside for repairs
- the plan has too many limitations for your comfort
A home warranty can be helpful, but I would not look at it like a fix-all. It is one option, and it only makes sense if the coverage lines up with the home you are buying.
How I would think through it with a buyer
When I help a buyer think through whether a home warranty makes sense, I look at a few key things:
- How old are the major systems and appliances?
- Is the buyer already stretched financially after closing?
- Would that extra coverage bring peace of mind?
- Is the seller offering to pay for one?
- Does the actual plan cover what matters most?
That last part matters. Buyers sometimes hear “home warranty” and assume it covers more than it really does. I would much rather you slow down, read the details, and make a smart decision than pay for something that does not really fit your situation.
Tennessee home warranty plans
If you want to compare a few options, here are some home warranty companies serving Tennessee.
Old Republic Home Warranty
- https://www.orhp.com/
- 800.972.5985
2-10 Home Buyer Warranty
- https://www.2-10.com/
- 800.775.4736
Achosa Home Warranty
- https://www.achosahw.com/
- 888-509-2916
Choice Home Warranty
- https://www.choicehomewarranty.com/
- 888-373-7924
Cinch Home Services
- https://www.cinchhomeservices.com/
- Quote phone: 866-408-0024
First American Home Warranty
- https://homewarranty.firstam.com/
- Quote phone: 888-875-0533
Take time to compare coverage, fees, exclusions, and how each company handles claims. The goal is not just to pick a company. The goal is to choose a plan that actually fits the house and your comfort level.
Final thoughts
A home warranty can be helpful, but I would not choose one blindly.
Look at the age of the home, the condition of the major systems, and whether the coverage truly fits what you need. For the right buyer, it can absolutely add peace of mind. For someone else, it may just be an added expense.
The main thing is knowing what you are paying for, what it may help with, and where the limits are. That is what helps you make a confident decision.
