Dear Dave,

We are looking to buy a house and have narrowed it down to some of the older neighborhoods and older homes. One of the houses we looked at included a 1-year home warranty. We decided that house wasn’t right for us—but we did like the idea of the home warranty.

What do you think of home warranties—are they worth it or not?

Thanks for the help,
Rich and Lydia – Delta, CO

Rich and Lydia,

How exciting! I love hearing from people in the home-buying stage—it’s such a big, fun step, especially when you’re narrowing things down and getting closer to the one that’s “just right.” Thanks for a great question.

Truth be told, my opinion on home warranties has shifted over the years. I used to think they weren’t worth the money—more of a feel-good add-on than something that really moved the needle. But after seeing firsthand how they’ve helped some of our clients, I’ve come around. In the right situations, I now believe they can be a smart part of the buying process—especially for older homes.

A home warranty can be especially helpful when it comes to older mechanical systems and appliances that are still working at the time of purchase, but nearing the end of their life expectancy. We’ve had clients save thousands of dollars because they had a warranty when something like the furnace, water heater, or even major appliances gave out shortly after moving in. In cases like those, the home warranty was an absolute lifesaver.

No one wants to buy a home, settle in, and then get hit with a $4,000 furnace replacement three months later. With a warranty, your out-of-pocket cost is typically just the service fee or deductible—usually somewhere between $75 and $150, depending on the company. That’s a whole lot better than paying full price for a brand-new system!

Now, not every warranty claim goes perfectly. Some companies have fine print, limits, or exclusions that can create frustration if you didn’t read the coverage closely. And some repairs may be covered, while others are only partially covered. So it’s important to go with a reputable company, understand what’s covered (and what’s not), and manage expectations going in.

Most warranties last one year, but many companies allow you to renew coverage year after year, which can make a lot of sense if you’re buying an older home and want some long-term peace of mind.

So, what’s the bottom line? I’d say home warranties can be worth it—especially for homes where major systems are aging but still working properly. Think of it as a cushion to soften the blow if something fails unexpectedly. For a few hundred dollars, it’s a small investment that can pay off big.

Best of luck on your home search—I hope the perfect place is just around the corner!

Dave Kimbrough
The Kimbrough Team – RE/MAX 4000

HAVE A QUESTION? ASK DAVE!
dave@thekimbroughteam.com