Is a Home Warranty Worth It? How to Decide for Your Home

What you actually pay

Plans averaged about $73 a month in 2026, with most falling between $28 and $191 depending on coverage. On top of that, you'll pay a service call fee, typically $0–$200 and about $108 on average, each time a technician visits. At those averages, a plan with two repair visits works out to roughly $1,090 a year. Compare that to what you'd expect to spend on repairs without it.

When a warranty makes sense

• Your HVAC, water heater, or major appliances are near the end of their lifespan.
• You don't have several thousand dollars set aside for a surprise replacement.
• You're a first-time buyer moving into an older home.
• You're a landlord who wants one number to call for repairs.
• You prefer a predictable monthly cost to an unpredictable one.

When you can probably skip it

• Your home is new and still under a builder's warranty.
• Your appliances are under manufacturer warranty, often 1–2 years and longer on some parts.
• You have a healthy emergency fund and you're handy with small repairs.
• Your biggest worries are things warranties typically exclude, like roof leaks or foundation issues.

Run your own numbers

List each covered system and appliance, how old it is, and what it would cost to replace. If several big-ticket items are past mid-life and a single replacement would cost more than a year of premiums, a warranty can pay for itself. If not, put the same amount into a dedicated savings account each month and build your own warranty.

How to get the most from a plan

Keep maintenance records and receipts. Companies can deny claims they attribute to poor maintenance. Read the exclusions before the first breakdown, and file claims as soon as something fails rather than letting a small problem grow.