Before purchasing a home warranty, it’s essential to understand what exactly is included in the coverage. A standard home warranty typically covers major systems such as heating, air conditioning, plumbing, and electrical, as well as key appliances like refrigerators, ovens, dishwashers, and washers/dryers. 

However, coverage can vary widely between providers and plans. Some may offer more comprehensive protection, while others might exclude items based on age, condition, or lack of maintenance. It’s important to read the policy details carefully and know the difference between basic and enhanced coverage. Identifying the systems and appliances that are most critical to your household can help you choose a plan that meets your specific needs. Ultimately, choosing the right home warranty requires a clear understanding of coverage, which will prevent surprises when it’s time to file a claim.

According to Forbes, 1,800 homeowners in March 2025 who purchased a home warranty within the past year were surveyed for this insight.

1. Compare Costs and Value

When evaluating home warranty options, it’s important to look beyond just the monthly or annual premium and consider the overall value the plan provides. Most home warranties come with a service call fee, also known as a deductible, that you pay each time a technician is dispatched to your home. These fees can range from $60 to $150 per visit, depending on the provider. Additionally, some plans have coverage caps, which limit how much the warranty company will pay for repairs or replacements. 

To make an informed decision, homeowners should estimate the potential costs of common repairs without a warranty and compare them to the total cost of the plan plus service fees. This comparison helps determine whether the plan is financially worthwhile based on your home’s age, the condition of appliances and systems, and your likelihood of needing repairs. Ultimately, the best home warranty is one that balances affordability with meaningful protection for the items you rely on most.

2. Take a Close Look at the Fine Print Before You Sign

Reading the fine print of a home warranty contract is one of the most important steps you can take before making a purchase. Every provider has different terms, and understanding these details can help you avoid unexpected costs and disappointments later on. Start by checking the waiting period, which is the time between when you purchase the warranty and when coverage actually begins. This is typically around 30 days, but it can vary. Next, look for clauses about pre-existing conditions, which many providers do not cover. Be sure to review coverage limits or caps, which determine how much the company will pay per repair or per item in a given year. 

Also, some contracts require homeowners to show proof of regular maintenance for appliances and systems in order to qualify for coverage. It is also wise to understand how the company handles repairs, whether they choose the service provider or allow you to pick your own. Finally, read the cancellation policy carefully. Some companies may charge cancellation fees or only offer partial refunds if you decide to end your contract early. Taking the time to evaluate these terms in detail ensures you choose a home warranty that matches your needs and avoids future frustrations.

3. Research the Provider’s Reputation

Before choosing a home warranty company, take the time to research the provider’s reputation to ensure you are working with a reliable and trustworthy business. Start by reading customer reviews on reputable sites such as the Better Business Bureau, Trustpilot, or Consumer Affairs. Pay close attention to feedback about how the company handles claims, the quality of repairs, and the responsiveness of their customer service team. 

Look for consistent patterns. Frequent complaints about denied claims or delayed service may be a red flag. It is also helpful to check how long the company has been in business and whether it has faced any legal issues or regulatory actions. You can also ask friends, family, or real estate professionals for recommendations based on their experiences. Choosing a well-reviewed provider increases your chances of receiving dependable service when you need it most. A strong reputation is often a good indicator of a company that values its customers and stands behind its coverage.

4. Understand the Claims Process

Knowing how the claims process works is essential before signing up for a home warranty plan. Each provider handles claims differently, so it is important to understand the steps involved in requesting service. Typically, when a covered item breaks down, you will need to contact the warranty company either online or by phone to file a claim. From there, the provider will assign a service technician to diagnose and fix the issue.

In most cases, you will be responsible for paying a service call fee at the time of the visit. It is also important to ask whether the company allows you to choose your own contractor or if they only work with specific service providers. You should find out how quickly they respond to service requests, especially during emergencies. Delays in repair or poor communication can be frustrating when essential appliances or systems are not working. Taking time to understand the claims process ahead of time can help you avoid surprises and ensure you know exactly what to expect when something goes wrong in your home.

5. Understand the Claims Process and What Is Not Covered

To make the most of your home warranty, it’s important to understand both how to file a claim and what is and isn’t covered. Here’s a simple breakdown to help:

• How the Claims Process Works:

Step 1: When a covered item breaks down, contact your warranty provider by phone or through their website.

Step 2: The company will assign a licensed service technician to inspect the issue.

Step 3: You’ll pay a service call fee, which usually ranges from $60 to $150.

Step 4: If the item is approved for coverage, the technician will repair or replace it based on the warranty terms.

What Is Home Warranty Usually Covered:

Major home systems such as:

• Heating and air conditioning (HVAC)
• Electrical systems
• Plumbing systems
• Water heaters

Common household appliances like:

• Refrigerators
• Dishwashers
• Ovens and cooktops
• Washers and dryers

What Is Usually Not Covered in Home Warranty plans:

• Pre-existing conditions or damage that occurred before the warranty started
• Improperly maintained appliances or systems
• Cosmetic issues, such as dents, scratches, or faded surfaces
• Outdoor items, like sprinkler systems or pool equipment (unless added as extra coverage)
• Structural components, including walls, windows, and foundations

By understanding these details, you’ll be better prepared to use your home warranty when needed and avoid unexpected claim denials. Always review your specific policy carefully, as coverage can vary by provider.

6. Consider Your Home’s Age and Condition

When deciding on a home warranty plan, it’s important to take into account the age and condition of your home and its major systems and appliances. Older homes typically have aging equipment that may be more prone to breakdowns, making a comprehensive warranty plan more beneficial. If your HVAC system, water heater, or kitchen appliances are more than 8 to 10 years old, the likelihood of needing repairs or replacements increases. 

On the other hand, if your home is relatively new or recently renovated, many of your appliances may still be covered under manufacturer warranties, and a basic plan might be all you need. Also, consider the maintenance history of your home. Warranty providers often require that systems and appliances be properly maintained in order to qualify for coverage. By evaluating the current condition of your home, you can choose a warranty plan that provides the right level of protection without paying for coverage you don’t need.

7. Ask for Customizable Plans

Not all homes have the same needs, which is why asking for customizable home warranty plans can be a smart move. Many providers offer flexible options that allow you to add or remove specific types of coverage based on your home’s features. For example, if you have a swimming pool, spa, second refrigerator, or a well pump, you may want to include those as optional add-ons. Some companies also allow you to choose between different tiers of coverage for appliances or systems, so you can prioritize what matters most. 

Customizable plans give you more control over your budget and help ensure that you are not paying for protection you do not need. Before choosing a plan, speak with a representative to see what personalization options are available and whether the provider offers the flexibility to upgrade or adjust your coverage over time. This can help you get the best value while still keeping your home protected.

8. Compare Multiple Providers

Before committing to a home warranty, it’s a good idea to compare multiple providers to find the one that best fits your needs and budget. Each company offers different coverage options, pricing structures, service fees, and customer service experiences. Start by making a list of the most important features you want in a warranty, such as coverage for specific appliances, low service call fees, or a flexible claims process.

Then, research at least three to five companies and compare what each one offers. Look into customer reviews, Better Business Bureau ratings, sample contracts, and how the company handles claims and repairs. Pay attention to any fine print that may limit your coverage or delay service. For a helpful starting point, check out the best home warranty companies according to Forbes. By taking the time to compare providers side by side, you can make a more informed decision and choose a plan that offers reliable protection, fair pricing, and strong customer support.

9. Review and Update Your Coverage Annually

Your home’s needs can change over time, which is why it’s important to review and update your home warranty coverage each year. As appliances age or get replaced, or as you make upgrades to your home, the type of coverage you originally selected may no longer be the best fit. For example, if you install a new HVAC system or replace your kitchen appliances, you might not need the same level of protection you once did. 

On the other hand, if older systems are starting to show signs of wear, upgrading to a more comprehensive plan could save you money in the long run. It’s also a good time to reassess the service call fees and coverage limits to make sure they still work for your budget. Some providers offer the flexibility to add or remove items from your plan, so you can adjust coverage as needed. Taking a few minutes once a year to review your warranty can help you stay protected and ensure you’re not paying for unnecessary coverage.

10. Involve a Home Inspector or Contractor in Your Decision

One uncommon but highly effective tip when choosing a home warranty is to consult with a trusted home inspector or licensed contractor before selecting a plan. These professionals have firsthand experience with the types of system failures and appliance breakdowns that occur most often in homes, especially those similar in age and condition to yours. They can give you an honest assessment of which parts of your home are likely to need service soon and which warranty coverages would be the most valuable. 

A contractor might also tell you whether the brands and models in your home are commonly covered or prone to denial by certain providers. Their technical insight can help you avoid wasting money on unnecessary coverage and instead focus your investment on areas where you are most at risk for costly repairs. This kind of expert advice can add a layer of protection to your decision-making process that goes beyond what you would find in reviews or plan comparisons alone.

Conclusion

Choosing the right home warranty can be a complex and sometimes confusing process, especially for first-time homeowners or those unfamiliar with how these plans work. With a wide range of providers offering different levels of coverage, pricing structures, service fees, and exclusions, it takes time and careful attention to compare your options and understand which plan truly fits your home’s specific needs. Many homeowners find it challenging to weigh the cost of a warranty against the potential repair or replacement expenses they may face in the future. However, a well-chosen home warranty is not just a short-term convenience. It is a long-term investment in your home’s functionality, your financial stability, and the peace of mind of your entire family.

When a major appliance or home system fails unexpectedly, such as your heating in the middle of winter or your refrigerator just before a holiday gathering, having a home warranty in place can save you hundreds or even thousands of dollars in repair costs and help resolve the issue quickly. This protection becomes even more valuable as your home ages and appliances become more prone to wear and tear. Choosing a reliable provider with a transparent claims process and customizable coverage ensures that you are not just buying a policy, but securing a practical safety net for your household.

By taking the time to review your home’s condition, evaluate your budget, ask questions, and revisit your coverage every year, you are making a smart decision that protects both your home and the well-being of your loved ones. In the end, a home warranty should give you more than coverage. It should give you confidence and peace of mind for the years ahead.