If you’re here, chances are you either:

  • Own a home and are considering getting a home warranty, or
  • Already have one and want to understand it better.

Good news—you’re in the right place. This guide covers what a home warranty is, what it can do for you, and whether it’s the right choice for your home.

What Is a Home Warranty?

A home warranty is a service contract that helps cover the cost of repairing or replacing certain home systems and appliances when they break down from normal wear and tear.

Like insurance, you pay either a monthly or yearly premium, and in return, you get coverage for the items listed in your contract.

What Does a Home Warranty Cover?

Coverage depends on the provider, but most home warranties include major home systems and appliances, such as:

  • Oven
  • Refrigerator
  • Water heater
  • Plumbing systems
  • And more

Important: Each contract spells out what’s covered, payout limits for each item, and the maximum payout per coverage period. Read your contract carefully before buying, and don’t hesitate to ask your provider’s customer service team for clarification.

What Does a Home Warranty Cost?

According to HomeAdvisor, a home warranty premium can range from $219 to $1,719 per year, with the average cost sitting at $964 annually.

In addition to your premium, you may have to pay a service call fee (deductible) whenever you file a claim. This amount varies by provider and may depend on the level of coverage you choose.

How Does a Home Warranty Work?

When a covered item breaks down:

  1. File a claim with your home warranty company.
  2. Most providers send an approved, licensed technician to diagnose the issue.
  3. If repairs cost more than the item’s value, the company may help cover replacement costs.

Why APHW is different:
America’s Preferred Home Warranty lets you choose ANY licensed contractor—not just from a pre-approved list. This means you can work with a technician you already know and trust. Plus, because they work for you (not the warranty company), you have more control over the process.

Do You Need a Home Warranty?

While homeowner’s insurance is typically required, a home warranty is optional. Still, there are two major reasons to consider one:

1. Budget Protection

Unexpected repairs can cost hundreds—or even thousands—of dollars. Depending on your contract, a home warranty can cover part or all of that expense, shielding your budget from major hits.

2. Peace of Mind

When an essential system or appliance breaks, you’ll know exactly who to call—reducing stress and getting your home back to normal faster.

The Bottom Line

A home warranty won’t cover everything, so it’s important to read your contract carefully before signing. But if you want budget protection and peace of mind for your home’s most important systems and appliances, a home warranty can be a smart investment—especially if you’re on a tight budget.

Click HERE to get your free quote today!