Buying a home is a monumental event and one of the most important investments people make in their lifetime. During the process, buyers are oftentimes focused on the purchase price and the mortgage payment amount, but the costs of owning a home do not end at closing. Homes require maintenance in more ways than many new home buyers are aware of. Over time the structure and the systems that keep the home functional require work to be done throughout its lifetime, which can add up to a hefty sum.
Industry data shows homeowners now spend nearly $6,000 per year on maintenance and repairs, with first-time homeowners sometimes spending over $12,000 in their first year alone. Heating and cooling systems, appliances, and plumbing issues can turn into costly repairs quickly, often when homeowners least expect it.
Why these costs matter more than ever
Today’s buyers are more cautious and financially aware than in years past. Home inspections are becoming more important than ever, and selling a home can be determined on the quality of the systems and structural surfaces. Moving in can be stressful enough, but sometimes unexpected repairs can be the real worry.
With the costs increasing, shifting perspective to preparing for repairs is just as important as financially planning for the purchase.
What is a home warranty?
A home warranty is a renewable service plan that helps cover the repair or replacement costs of major home systems and appliances when they break down due to normal use. Coverage varies by plan and provider, but most warranties include items such as:
Heating and cooling systems
Plumbing and electrical systems
Refrigerators, dishwashers, ovens, washers, and dryers
It’s important to note that a home warranty is not the same as homeowners insurance. Insurance protects against unexpected damage like fires, storms, or theft, while a home warranty helps manage the everyday wear-and-tear breakdowns that naturally happen over time.
When paired together, homeowners insurance and a home warranty can provide more complete protection for both the structure of the home and the systems inside it.
Why home warranties make sense for many homeowners
With repair costs climbing, home warranties have become an increasingly practical tool. Instead of facing a sudden $5,000–$6,000 HVAC repair or a major appliance replacement out of pocket, homeowners can rely on a warranty to help offset those expenses.
A home warranty can be especially valuable for:
Owners of older homes or aging systems
First-time buyers adjusting to the realities of maintenance costs
Sellers looking to offer buyers added peace of mind
Anyone who prefers predictable annual costs over surprise repair bills
While new homes and appliances may still be covered by manufacturer warranties, those protections expire, often sooner than homeowners expect. A home warranty can help bridge that gap once those initial warranties run out.
What do home warranties typically cost?
Home warranties are generally far less expensive than most major repairs. On average, in Easter New York, home warranties can cost approximately $400 to $1,000+ per year, with average plans costing around $600–$700 annually. While this can seem daunting when initially considering a home warranty, the cost of replacing a furnace, AC unit, or major appliance, many homeowners find the investment well worth it.
What’s usually covered, and what’s not
Home warranties commonly cover the repair or replacement of major systems and appliances, but coverage details vary. Most plans do not cover:
Structural elements like foundations, walls, or flooring
Pre-existing conditions
Improper installation or lack of maintenance
Cosmetic issues or code violations
Reading the contract carefully and choosing a plan that fits your home’s specific needs is key.
The bottom line
While the costs of maintenance and repair continue to rise, the conversation around homeownership is more important than ever. While dreaming of your new home, it’s also important to consider it’s future.Thoughtful planning for you and your home can lead to feeling even more excitement and confidence when signing for the purchase of your home. It can also eliminate mountains of stress knowing that you are properly prepared for risks, ensuring your make even more happy memories within it.
A home warranty isn’t about eliminating every risk, it’s about managing it wisely.