Should You Buy a Home Warranty? Pros and Cons!

Thinking about a home warranty for peace of mind—or because it’s customary in your area? Here’s a clear, no-nonsense breakdown so you can decide if it’s worth it.

The gist

• In Orange County (and many nearby markets), sellers commonly provide a 1–2 year home warranty to buyers. It’s cheap insurance that helps if something fails right after closing.

• Key limiter: pre-existing conditions are not covered. You must prove items were in good working order at policy start or at close.

Pros

• Helps deliver the home in working condition and reduces finger-pointing after move-in

• One call for common systems/appliances (HVAC, water heater, basic electrical/plumbing depending on plan)

• Predictable service fee per claim (example in video: $85)

• Good for first-time buyers and anyone bracing for move-in expenses

Cons

• Coverage denials if an issue looks pre-existing or poorly maintained

• Scheduling can be slow; you use the provider’s contractor network

• Replacement is like-kind, not “upgrade to premium”

• Service fee on each claim; small issues may not pencil out

Make it actually work (buyers and homeowners)

1. Document “working condition.” Keep invoices and service reports that say “unit functioning properly.” Add photos/video at move-in or policy start.

2. Call the warranty first. Don’t hire your own tech and try to submit the bill later.

3. Know your add-ons. Examples: refrigerator, washer/dryer, AC, pool, sewer line, roof leak coverage.

4. Pick the plan before you write the offer. Price it and ask the seller to provide a warranty “up to $___.”

5. If you’re the seller, budget for it. It’s inexpensive goodwill that can save a post-closing dispute.

Who should get one?

• Yes: first-time buyers, buyers of older systems, sellers providing customary coverage, landlords who want a predictable process.

• Maybe: experienced owners who prefer their own vendors and fast turnarounds.

• No (often): owners who’d rather self-insure, demand premium brands, or can’t tolerate delays.

1-year vs 2-year plans

If you can afford it, the 2-year often prices better than buying a 1-year and renewing later.

Common denial triggers

• Pre-existing failures documented in the home inspection

• Lack of maintenance (filters, tune-ups)

• Code upgrades, haul-away, permits not included unless you buy those options