A home warranty is a service contract designed to protect homeowners from the cost of repairing or replacing major systems and appliances that fail due to normal wear and tear. Unlike homeowners insurance—which covers fire, theft, and natural disasters—home warranties handle things like a broken dishwasher, failing HVAC unit, or leaky plumbing.

They’re often priced at $400–$800 per year plus a service fee (usually $75–$125) whenever you file a claim. Whether they’re worth it depends on your home, your appliances, and your appetite for risk.

Why Some People Like Home Warranty Plans

• Financial protection: You won’t face the full burden of an unexpected $5,000 furnace repair.

• Convenience: The warranty company arranges technicians, saving you from having to shop around.

• Great for older homes: Useful if systems are aging and repairs are more likely.

• Negotiation tool: A home warranty can be requested by buyers as part of a real estate offer, giving buyers extra peace of mind during the first year of ownership. Sometimes sellers agree to include one as an incentive.

Why Some People Don’t Like Them

• Coverage limits: Many contracts exclude “pre-existing conditions” or cap payouts (sometimes $1,000–$7,000 depending on the plan).

• Claim frustrations: Some customers complain of slow service, denied claims, or repairs that don’t fully fix the issue.

• Cost vs. usage: If nothing breaks, you may spend hundreds without receiving any benefit.

• Limited contractor choice: You generally cannot pick your own repair company.

Spotlight: First American Home Warranty

• Plans: Starter ($42–$47/mo), Essential ($57–$62/mo), Premium ($77–$82/mo). Service fees $100–$125.

• Coverage: Appliances (dishwasher, fridge, range), systems (plumbing, electrical, HVAC), and premium add-ons like pool/spa or roof leak repair. Appliance caps: $3,500 (Starter/Essential), $7,000 (Premium). Some system repairs have no dollar cap.

• Extras: “First American Advantage” perks such as hauling away old appliances or addressing code violations.

• Pros: High coverage caps, broad plan options, military and seasonal discounts.

• Cons: Reports of long repair delays, denied claims, or inconsistent contractor service.

Spotlight: Choice Home Warranty

• Plans & Pricing: Around $60–$68/month, $100 service fee. Basic and Total plan options.

• Pros: Affordable, 24/7 claims line, 90-day workmanship guarantee (longer than many competitors).

• Cons: Mixed reviews—some happy customers, but others cite delays, poor communication, and loopholes in coverage. Not BBB-accredited.

Manufacturer Warranties: Built-In Appliance Protection

When you buy a new appliance, it usually comes with a manufacturer warranty—different from a home warranty.

• What it covers: Defects in materials or workmanship, usually for 1 year (longer for certain parts like compressors). Covers parts and labor.

• What it doesn’t cover: Normal wear and tear, accidental damage, or misuse.

• How it works: You register the appliance with the manufacturer at purchase and contact them directly for claims.

• Key difference: Once that expires, only a home warranty or extended warranty would help with future breakdowns.

Type of WarrantyCovers DefectsCovers Wear & TearWho Handles Repairs Manufacturer Warranty✔ Yes✘ NoManufacturer/RetailerHome Warranty Plan✘ No✔ YesThird-party provider

Final Takeaways

• A manufacturer warranty protects against defects right after purchase.

• A home warranty kicks in later, covering wear and tear for both appliances and systems.

• First American is strong on coverage caps and flexibility, while Choice is budget-friendly but less consistent in service quality.

• In real estate, a home warranty can be negotiated during an offer, often included by sellers to reassure buyers.

Bottom line: A home warranty can be a smart safety net, especially for buyers of older homes, but it’s essential to read the fine print and weigh the cost against your household’s actual risk of breakdowns.

If you’d like to get more information about a home warranty, feel free to reach out to one of our contacts:

First American Home Warranty, Caroline Cross: 865-202-7780

Choice Home Warranty, Maryann Azambuja: 865-248-9921