Home warranties promise to protect you from costly repairs—but do they actually save money in the long run? For many homeowners, the answer is yes, especially when large systems or appliances start to wear down. Here’s how to evaluate the cost-effectiveness of a home warranty plan.

Average Costs Without a Warranty
HVAC system repair: $300–$1,500

Water heater replacement: $800–$1,200

Refrigerator repair: $200–$600

Plumbing issues: $150–$1,000+

Now compare that to a typical home warranty plan:

Monthly cost: $35–$60

Service fee: $75–$125 per visit

One major breakdown could easily justify a full year’s premium.

Situations Where a Warranty Saves Money
Older homes with aging systems and appliances

New homeowners unsure of appliance condition

Busy professionals who prefer not to vet repair technicians

When It Might Not Be Worth It
Homes with new appliances still under manufacturer warranty

DIY homeowners who can make simple repairs

Homes with limited covered items under the plan

Hidden Costs to Watch
Coverage caps (per item or per year)

Claim denials for “pre-existing conditions”

Extra charges for out-of-network service

Conclusion
Home warranty plans can offer real savings—but only if you choose wisely. Do the math, read the contract carefully, and assess your home’s condition before signing up.