The seller is offering a home warranty? Does that actually do anything?

Do home warranties actually help?

The seller is offering a home warranty that comes with your purchase, and you want to know if home warranties provide real value. A home warranty covers repairs or replacements for major systems and appliances that break down after you move in. The warranty company typically charges a service fee (commonly $75-$125) when you file a claim, then covers the repair or replacement cost up to certain limits. Coverage commonly includes HVAC systems, water heaters, electrical systems, plumbing, and major appliances like refrigerators and dishwashers. The warranty runs for one year from your closing date, though you can usually renew it.

Check what the specific warranty covers and what situations are excluded—some policies don't cover pre-existing conditions or items that weren't maintained properly. You can also review the service fee amounts and coverage limits for each system. Many home buyers appreciate the peace of mind, especially in older homes where systems might need attention. Others prefer to set aside money for repairs instead. If the seller is paying for the warranty, you can accept it and decide later whether to renew. Share the warranty details with your agent and they can walk you through what's included.