Making Sense Of A Home Warranty

As a consumer, when you purchase an expensive item, like a car or refrigerator, you expect to receive a warranty that the manufacturer will repair or replace that product if it breaks down.

A warranty makes sense for big-ticket purchases, but what about for a home?

An Overview of Home Warranties

A home warranty typically covers the repairs on specific items in a home, such as heating and air conditioning systems, plumbing, and built-in appliances.1

A home warranty on a newly built home may be offered by the homebuilder and may cover up to 10 years on structural defects; one year on items like walls and paint; and two years for HVAC, plumbing, and electrical systems. Appliances may only be covered for six months. Typically, the cost of this policy is contained in the price of the home.

A home warranty on an existing home can also be purchased, usually paid for by the seller or real estate agent to facilitate the sale of a house. These policies tend to have coverage lasting no longer than one year.

Occasionally, a home buyer may choose to purchase a policy, for instance, in the case of buying a foreclosure.

Be Realistic

You should understand the limits to which a home warranty can protect you. A home warranty promises you that certain items will remain functional; it does not promise you a new appliance or furnace.

Though it may be comforting to know repairs are covered, a warranty may restrict the contractors you can use to do the repair work.

A home warranty may be most beneficial to someone who will be purchasing an older home.

If you elect to buy a home warranty, make sure you work with a reputable company that has a long-standing record in your local area. And as always, be sure to comparison shop.

Home Warranty FAQs

• What is a home warranty?

  A home warranty is a service agreement that helps cover the repair or replacement costs of major home systems and appliances that may break down due to normal wear and tear. Commonly covered items include HVAC systems, plumbing, electrical systems, and built-in appliances.

• What does a home warranty typically cover?

  Coverage varies by provider, but most home warranties include major systems like heating and cooling, plumbing, and electrical, as well as appliances such as refrigerators, ovens, and dishwashers. It's important to review the policy details to understand exactly what is included.

• How long does a home warranty last?

  Home warranties on newly built homes may offer tiered coverage—up to 10 years for structural issues, two years for systems like HVAC and plumbing, and shorter periods for cosmetic elements and appliances. For existing homes, warranties typically last about one year.

• Who usually pays for a home warranty?

  In many real estate transactions, the seller or real estate agent may purchase a home warranty to make the property more attractive to buyers. However, buyers can also choose to purchase a policy themselves, especially when buying older homes or foreclosures.

• Does a home warranty guarantee replacement of broken items?

  No, a home warranty does not guarantee full replacement. It typically covers repairs needed to restore functionality. Replacement may only occur if repair is not feasible and is subject to the policy’s terms and limits.

• Are there limitations to home warranty coverage?

  Yes, home warranties often have exclusions, coverage caps, and may require you to use specific contractors within their network. Understanding these limitations before purchasing a policy is essential.

• Is a home warranty worth it for homeowners in Glastonbury, CT?

  A home warranty may be especially beneficial for buyers of older homes in Glastonbury, Connecticut, where aging systems and appliances could lead to unexpected repair costs. However, it’s important to compare providers and evaluate whether the coverage aligns with your specific needs.

1. Several factors will affect the cost of a home warranty policy, including the size, location, and contents in the home. Any guarantees associated with a home warranty policy are dependent on the ability of the issuing company to continue making claim payments.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2026 FMG Suite.

© 2026 Commonwealth Financial Network®