Home warranty plans

Systems plans cover the built-in infrastructure of the house. These are the expensive failures, which is why systems coverage is usually the version that makes financial sense if any version does. Basic protection plans run roughly $35 to $50 a month or $400 to $600 a year.

Appliance plans cover things you could otherwise replace outright. Appliance protection runs about $35 to $45 a month or $400 to $500 a year. Compare that against the replacement cost of your actual appliances before buying — for a kitchen full of budget appliances, a year or two of premiums plus service fees can approach the price of just replacing the one that dies.

Combined plans ("total protection") run about $40 to $75 a month or $450 to $900 a year. More coverage is not automatically better value; it is more surface area for exclusions and caps to operate on.

Buyer and seller coverage are the versions attached to a real estate transaction. Note one legal detail: in California, furnishing a home protection contract without charge is itself a violation — the contract must involve consideration, whether paid up front or on transfer of title. So a "free" warranty in a transaction is being paid for by someone; ask who and how much.

How to choose

Buy systems, skip appliances, if you buy at all

Systems failures are the ones that produce bills you can't absorb. A dishwasher is not that.

Add the service fees to the premium

Three claims a year at $75 to $125 each adds $225 to $375 on top of a $400 to $900 premium. That's the real annual cost.

Ask what 'covered' means for your specific equipment

Age limits, code-upgrade exclusions, and per-item caps all apply. Get it confirmed in writing for the units you actually own.

In a real estate deal, ask who's paying

A contract provided at closing is being paid for by a party to the transaction. Find out which one and what it cost.

Never buy on a phone call

Get the sample contract by email, read the exclusions, then decide. Nothing about this product is time-sensitive.