When you buy a home, you want to know that you won’t encounter problems with the house itself. However, unexpected issues arise in any property, whether old or new. Even if you’re diligent about maintenance, unexpected problems can happen. Fortunately, home warranty programs can help protect you from unexpected repair costs. The following are some common risks when purchasing a home warranty:

Repair costs that exceed your budget

One of the biggest problems with home warranties is that they don’t cover everything. While many are designed to cover major components of your home, such as appliances or HVAC systems, others are more general in scope. If you have an appliance warranty that doesn’t cover your fridge, for example, there’s a good chance your new fridge will break down. When that happens, you’ll have to pay for repairs, which could be more than what your warranty covers. Home warranty providers will often have a grace period when you need to make repairs and they don’t expect you to pay for them right away. However, if you run into a situation where you can’t afford the repairs, you’ll have to pay for them out of pocket.

Hidden costs to sign up

When you sign up for a home warranty, you’ll likely be required to pay a deductible. This is a fee that you pay upfront to cover the cost of repairs in the event that they’re covered by the warranty. However, some companies will require you to pay a higher deductible than others. While the average home warranty deductible is around $100, some companies require a $1,000 deductible. If you’re trying to save money by signing up for a lower-priced plan, you may not be prepared to pay that much out of pocket.

Lack of coverage for major repairs

Some home warranties don’t cover major repairs, such as roof replacements. Instead, these warranties will cover repairs that could be prevented by routine maintenance. For example, if your roof is old and in need of replacement, your warranty may cover the cost of temporary repairs while you wait for the roof to be replaced. However, if your roof is in good condition and you don’t need a temporary repair, you may not be covered.

Ongoing maintenance not covered

Depending on your home warranty provider, you may or may not have to maintain a certain level of upkeep in your home. If you don’t, you could end up falling behind on payments, which could cause your warranty to be cancelled. Some providers will require you to perform routine maintenance, such as changing out air filters or cleaning out your HVAC system. Others will only require you to perform preventative maintenance, such as having your HVAC system serviced once a year.


Home warranty programs can help protect you from repair costs that exceed your budget and unexpected repairs. However, you need to be careful to avoid hidden costs and falling behind on maintenance. With the right plan, you can protect your home investment and avoid unexpected repair costs.