Home warranties are typically offered as 1-year contracts and can be renewed annually. Unlike homeowner's insurance, they are not legally required and are entirely optional. Plans like these are frequently chosen by homeowners and buyers in areas like Houston, Texas, and they can also be a point of negotiation in the home buying and selling process. In short, a home warranty is a subscription service that protects not your home or appliances themselves, but rather the working condition of your home's systems and appliances.
How Does a Home Warranty Work?
Let's walk through the home warranty process step by step:
- Filing a claim: When a covered appliance or system in the home breaks down, the homeowner opens a claim (service request) with the warranty company. This is usually done by phone or through the company's online portal.
- Service scheduling: The warranty company dispatches a contracted repair technician or service provider to your home. The appointment time depends on the company's procedures and technician availability.
- Diagnosis: When a covered issue arises, the company typically sends a licensed technician to make the repair. The technician evaluates the problem with the relevant appliance or system and determines whether a repair or replacement is needed, then reports their findings to the warranty company. At this stage, your job is simply to let the technician know you have a warranty and, if necessary, provide your contract number.
- Approval and repair: The warranty company reviews the technician's report and either approves or denies the claim. If approved, the technician is authorized to complete the repair or replacement; your only out-of-pocket cost will be the monthly or annual premium you've already paid and the service call fee specified in the contract — typically around $75–$150 per visit. If the claim is denied — meaning the failure or its cause falls outside the plan's coverage — the company will not cover the repair. In that case, you'll pay for the repair yourself, and you'll still have paid your premium and service call fee. In other words, the warranty provided no benefit in this scenario, and your total out-of-pocket cost may actually be higher than if you hadn't had a warranty at all.
Home warranty plans generally charge a service fee for each claim, which is collected even if no repair is ultimately made. Also, many companies don't allow claims to be filed immediately when the plan begins — there's typically a 30-day waiting period from the start of the contract. This is to prevent people from signing up after a problem has already appeared and immediately filing for service. If you're obtaining a home warranty as part of a real estate transaction, the policy is generally set to take effect on the closing date. However, if you purchase a plan long after becoming a homeowner, issues that arise within the first month may not be covered. For this reason, it's recommended to start a home warranty plan when purchasing the home or immediately afterward to ensure full protection.
What Does a Home Warranty Cover?
As the name suggests, a home warranty protects the home's mechanical and electrical components — not the structural elements. Coverage varies by plan, but most standard home warranty policies typically include the following major home systems and appliances:
- Interior systems: Heating and cooling systems (furnace, air conditioning unit), interior plumbing (supply and drain pipes), electrical systems, water heaters — these essential systems are generally covered. Some plans also cover pipe blockages within the home or limited roof leaks.
- Appliances: Many kitchen and laundry appliances are typically included in standard coverage. For example, the refrigerator and freezer, oven and cooktop, built-in microwave, dishwasher, washer, and dryer are commonly covered.
- HVAC and climate control: Central heating and cooling systems (AC compressor, blower motor, etc.) are included in most plans since their failures can be very expensive. A home warranty can provide coverage to repair or replace these units up to a set dollar limit when they break down due to normal wear and tear.
- Combination plans: Many providers also offer systems + appliances bundled packages. These plans cover both home systems and appliances and are typically offered at tiered levels — more expensive plans provide broader coverage.
In some cases, coverage can be expanded with optional add-ons. For example, if your home has a swimming pool, spa, well pump, or septic system — items not included in standard plans — you may be able to add them for an extra fee. Since Houston-area homes with pools are common, if you want pool pump or heater coverage, you'll need to mention it when getting a quote. Whatever plan you choose, the most important thing is to read the contract carefully to understand exactly what's covered. Home warranties typically set an annual payment cap for each system or appliance; for example, if a plan covers AC repairs up to $1,500 per year and the repair costs more than that, you'll need to cover the difference. Being aware of the limits and conditions for each covered item is essential.
What Does a Home Warranty Not Cover?
Home warranties have exclusions just as they have coverage. Your policy will typically list these exceptions under a section titled "Exclusions" or "Limitations of Liability." In general, home warranties do not cover the following:
- Structural and cosmetic items: A home warranty does not cover the home's structural components or surface-level defects. Walls, foundation, full roof covering, paint, carpet, hardwood floors, and cosmetic damage are excluded. (Note: Some policies cover minor roof leak repairs on a limited basis, but this does not constitute a general warranty for roofing materials.)
- Natural disasters and external events: Damage caused by natural disasters — earthquakes, floods, hurricanes, storms, lightning — is not within the scope of a home warranty. Similarly, unexpected accidents like fire or explosions are covered by homeowner's insurance, not the home warranty.
- Pre-existing conditions: Failures and problems that existed before the contract was established are generally excluded. So if an issue was identified in your home inspection when you bought the home, that component likely won't be covered under the warranty even if you later include it in a plan. Companies exclude failures that occurred prior to the contract start date or known recurring problems.
- Improper use or neglect: Breakdowns caused by misuse of appliances, failure to perform routine maintenance (neglect), or user error are generally excluded. For example, if you try to have the AC repaired by an unauthorized technician and cause further damage, or if the water heater has never had an annual flush/cleaning, the warranty company may deny the resulting claim. Similarly, unauthorized modifications to appliances may void the contract.
- Other exclusions: Common exclusions that vary by policy include: mold, mildew, or pest-related problems; plumbing outside the home (like irrigation systems); wear and tear from commercial use; secondary damage (such as damage to hardwood floors from a leaking water heater); and manufacturer recalls or repairs covered under manufacturer warranties belong to the manufacturer, not the home warranty company.
In short, a home warranty focuses on mechanical failures that occur under normal conditions over time. Anything outside of that — unusual events or situations not explicitly listed in the contract — is the homeowner's responsibility. That's why it's crucial to thoroughly understand what's excluded before purchasing a policy. Remember: no matter what a sales rep promises, every plan has exclusions and limits — reading the contract text prevents future surprises.
Why Get a Home Warranty?
Looking at the reasons home warranties are popular, we can see that they offer advantages for both buyers and sellers. For homeowners — especially new buyers — the biggest motivation is the desire to protect themselves against unexpected large repair bills. For example, in a hot-climate city like Houston, a serious AC breakdown could mean a bill of thousands of dollars including parts and labor. With a home warranty, when such a failure occurs, the company covers the bulk of it and you only pay a relatively small service fee to get the problem resolved. This gives homeowners financial predictability — they're protected against a sudden expense that could shake their home budget.
Another reason is the feeling of peace of mind and convenience. Many people appreciate having a phone number to call and an expert to dispatch when something breaks. For homeowners who aren't technically inclined or who don't want the hassle of finding a reliable contractor, a home warranty provides great convenience. When your refrigerator breaks, instead of deciding which repair technician to call, you contact your warranty company and they arrange a licensed professional. This saves time and reduces your stress.
Getting a home warranty is also a commonly recommended practice for first-time homebuyers. Many real estate agents recommend purchasing a one-year home warranty with every home purchase. The reason is that when you move into a new home, you may not fully know the home's history, and there's a chance some systems could fail within the first year. With a warranty, unexpected repairs won't be a headache as you're settling into your new home — if something breaks down, the buyer contacts the warranty company rather than pointing fingers at the seller. This provides peace of mind for the buyer and protects the seller from post-sale liability. In fact, home warranties also serve as a safety net for sellers: if an appliance breaks after the sale, the buyer calls the warranty company directly instead of coming back to the seller. This prevents post-sale disputes.
Finally, a home warranty can be a selling point in real estate marketing. Sellers can offer buyers a one-year home warranty as part of the listing. In the competitive Houston market, this is a common sight. From a buyer's perspective, buying a home with a warranty is more attractive — knowing that major repair costs are covered for at least the first year makes it easier to submit an offer. That's why sellers — particularly for older homes — may choose to offer a home warranty to put buyers at ease. In short, home warranties are popular because they provide peace of mind and protection for buyers and help facilitate the sale.
Who Gets a Home Warranty and Should You?
Those who most frequently choose home warranties are individual homebuyers — especially first-time buyers — and owners of older homes. First-time homeowners are unfamiliar with the maintenance and repair costs a home can bring, having come from renting; potential unexpected costs can create anxiety. So if their budget allows, they choose to reduce risk by purchasing a home warranty for the first year. It gives them a buffer period while they learn how to manage the home's systems. Real estate professionals may also commonly tell younger or less experienced buyers, "For peace of mind, get a home warranty from a reputable company your first year."
Buyers of older or resale homes also gravitate toward home warranties. Appliances in a home that's 10–15 years old (HVAC systems, water heaters, kitchen appliances) are more likely to fail given their age. In such a home, it's not uncommon to need multiple repairs in the first year. A home warranty gives the homeowner assurance on the maintenance of these aging appliances. In Houston especially, since AC systems run heavily for much of the year, it's wise for resale home buyers to have warranty coverage for AC and plumbing failures.
So should every homeowner get a home warranty? Actually, this depends entirely on personal preference and the condition of the home. If you bought a newly built home, you likely already have a builder's warranty covering certain structural matters, and your appliances are brand new with active manufacturer warranties. In that case, the added benefit of a home warranty may be limited. That said, even in new homes, issues can arise during installation or first-year use, and a warranty provides an extra layer of protection. On the other hand, some homeowners prefer to set aside what they'd otherwise pay in warranty premiums for when they actually need a repair (we'll cover this in the alternatives section).
In general, anyone who might struggle to cover unplanned repair costs — or who doesn't want that stress — can benefit from a home warranty. It's not insurance; it's an optional service. If you're very confident in the condition of your home's systems, are technically savvy, and are comfortable paying for repairs out of pocket when needed, you may skip it. However, trying it for the first year is a common practice: after buying your home, take a one-year home warranty for the first 12 months and see if it's actually useful. If the home is reasonably new and well-maintained, you may not need it. But if you want to sleep soundly without worrying about what happens if the AC breaks during Houston's brutal summer, a home warranty may be right for you.
Ultimately, a home warranty is not something every homeowner needs to get, but it is an option worth considering for every homeowner. The person's financial situation, the home's age, the condition of its appliances, and their personal risk tolerance all factor into the decision. Remember that even if you have a home warranty, your home maintenance responsibilities continue — if you neglect routine upkeep, the warranty may refuse to pay. So "I have a warranty, I don't have to worry about anything" is not the right mindset; it simply provides extra peace of mind and service convenience.
When Should You Get a Home Warranty?
When should a home warranty be activated? This question becomes especially important in the context of a real estate transaction. The general recommendation is that the home warranty should be purchased as part of the home sale process, at the time of closing. In real estate transactions, the cost of the home warranty is sometimes included in the closing costs, typically paid by the buyer. This means the buyer is simultaneously purchasing their first year of home warranty coverage when they buy the home. In some cases, the buyer may request that the seller pay all or part of the home warranty cost — this is entirely a matter of negotiation and can be reflected in the closing documents if the seller agrees.
Speaking specifically about Houston, Texas, a home warranty is not a legally required closing item (it's not required in any U.S. state). Therefore, sellers may proactively offer to provide the buyer with a home warranty. This is particularly common when selling an older home — the seller might say, "I'm covering your first year of home warranty coverage for your peace of mind," which is a nice gesture. It's also smart for the seller, since they avoid being the point of contact for the buyer if an appliance fails after the sale. In fact, in some states (Texas being one of them) a home warranty is not standard as a closing cost, so in these markets, it's most common for the seller to purchase and transfer it to the buyer. Who pays is entirely a matter of buyer-seller negotiation and local practice — there's no hard rule. For example, a buyer's offer could include the condition that the seller provide a one-year home warranty, or the seller could proactively advertise it.
If a home warranty wasn't obtained at closing, as a homeowner you can always purchase a plan. Say you bought your Houston home and after a few months decided you'd like a home warranty — you can contact a company and start a policy immediately. But remember that for new policies started outside of a real estate transaction, there's generally a 30-day waiting period. This prevents abuse of the plan. So you need to start the plan before a problem appears, not after something breaks — otherwise you won't be able to benefit. The ideal time is to try it for the first year when you purchase the home. If you didn't get it then, you can also get a plan when your home gets older or when you start worrying about major expenses. Many people in Texas enroll in a home warranty plan in the first month after buying their home (even if not at closing). Adding a home warranty to your new-home to-do list is a smart move.
Who Pays for the Home Warranty: Seller or Buyer?
Who pays for the home warranty depends largely on the circumstances and the agreement. Generally, if the home warranty is being obtained as part of a real estate transaction, it depends on the outcome of negotiation. In many real estate transactions, buyers simply incorporate the home warranty as part of their closing costs — so it's added to their expenses at the time of purchase and the policy begins in the buyer's name.
However, as a negotiation item, the buyer can ask the seller to pay for the home warranty. If the seller agrees, the warranty cost can be covered by the seller and a policy issued in the buyer's name. Especially when the seller wants to make the home more attractive to buyers, or if there are question marks about the home's condition, the seller might say "I'm including the home warranty as a gift" and absorb the cost. This practice is seen in many markets including Houston and benefits the seller, as it gives buyers confidence and protects the seller from potential post-sale liability.
To summarize, who pays for the home warranty is entirely a negotiation matter. There's no legal obligation for either the buyer or the seller — it's purely a matter of goodwill and deal-making. The parties can agree to have the seller pay, the buyer pay, or even split it 50/50. If you're a buyer and the home has older systems, you can include in your offer a requirement that the seller provide a one-year home warranty. If you're a seller who wants a quick sale, you can advertise "1-Year Home Warranty Included" and offer this assurance to buyers. Regardless of who pays, what matters is that the policy is active by the time of closing and available for the buyer's use. Also note that if you already have an active home warranty, you may be able to transfer it to the new buyer — many companies allow policy transfers, so it doesn't go to waste.
How to Get a Home Warranty in Houston, Texas
Getting a home warranty in Houston and across Texas is a fairly straightforward process. Many national home warranty companies operate throughout Texas and can serve homes in the Houston area. In Texas, these companies operate under a "Residential Service Company" license and are regulated by the Texas Real Estate Commission (TREC). So make sure the company you choose is a licensed and legally registered provider.
There are two ways to get a home warranty: The first is during the real estate process, either through your real estate agent or by choosing and purchasing a plan on your own. Agents can often recommend companies they trust. The second is to apply individually to a company after becoming a homeowner. In either case, the process is similar: you choose the plan and optional add-ons you want, apply to the company, make your payment, and start the contract. Your home is now registered and you can call the company whenever something breaks down.
Some of the leading home warranty companies serving Houston include:
- American Home Shield (AHS): One of the most well-known home warranty companies in the country, widely preferred in Texas. Offers a wide range of plan options and has a long track record.
- First American Home Warranty: An active company in the Texas market with comprehensive plan offerings.
- Old Republic Home Protection: A trusted company frequently recommended by real estate agents.
- Liberty Home Guard: A provider that has risen to prominence in recent years and offers policies in Texas as well.
- Choice Home Warranty: One of the national companies operating in Houston (though user experiences vary, so be sure to read the contract details carefully).
Beyond these, companies like Cinch Home Services, Select Home Warranty, 2-10 Home Warranty, and America's First Choice (AFC) Home Club also provide policies in Texas. The home warranty industry is quite competitive, so in a large state like Texas there's no shortage of options. What matters is finding the company and plan that best fits your needs and budget. For example, some companies offer a lower service call fee while others have a lower monthly premium; some may cover a certain appliance (like a second refrigerator or a pool) at no extra cost.
When getting a home warranty in Houston, you should also consider the company's customer service quality, technician network, and reputation. If possible, read reviews from other homeowners (on sites like BBB, Yelp, Consumer Affairs) and check TREC or Texas Department of Licensing records for complaints. Remember, the cheapest plan isn't always the best — fast service and honest claims assessment matter just as much. A good home warranty company should be able to resolve your issue as quickly as possible and in a fair manner when you file a claim.
The purchase process is generally straightforward: through the company's website or by calling customer service, you provide a few details about your home (age, square footage, address, desired add-ons, etc.) and they give you a price quote. You make the payment, confirm the contract, and your policy begins. You'll receive a copy of your policy by email — read it carefully, as it details what's covered and what's excluded. After that, whenever you have an issue with an appliance, you simply contact this company. In a large city like Houston, most warranty companies can dispatch service within the same day or within 24–48 hours, which is a significant advantage.
How Much Does a Home Warranty Cost?
The cost of a home warranty varies based on the plan's coverage, the home's size, optional add-ons, and the company's pricing. A standard home warranty plan typically runs $300–$600 per year. This base plan covers a typical home's major systems and certain key appliances. If you want more comprehensive coverage (e.g., all systems plus all appliances, plus optional pool, well, etc.), that can add an additional $100–$500 per year. Top-tier plans can reach the $800–$1,000/year range.
On a monthly basis, according to 2025 data, the average monthly cost of a home warranty plan in the U.S. is around $62. Basic plans can start as low as $25–$30/month, while comprehensive plans can exceed $100/month. The Texas market is close to these averages; most Houston-area companies price their basic plans at $30–$50/month, mid-tier plans at $50–$70, and top-tier plans at $70+.
But the cost of a home warranty doesn't end with the premium. Another item to pay attention to is the service call fee (or "deductible," as some companies call it) — a fixed fee paid each time you make a claim when the technician arrives, typically ranging from $75 to $150. For example, one company might charge $500/year with a $75 service fee, while another charges $400/year with a $125 service fee. If you expect many breakdowns in a year, a plan with a lower service fee makes sense; if you think "I'll only have one repair and I can cover that myself," you might prefer a lower premium. This trade-off is a matter of personal preference.
Payment options: Most home warranty companies offer a discount for annual upfront payment (some give a free month or apply a percentage discount). Monthly payment is almost always available — they typically auto-bill your credit card. In Houston, some real estate firms can provide coupon codes or discounts from their partner warranty companies — worth asking your agent about.
Renewals and price increases: At the end of the first year, you can renew your home warranty if you wish. However, be aware that renewal prices may be higher than first-year promotional rates. Companies often offer a discount to attract new customers in the first year, then revert to regular pricing. So it's worth getting quotes from other companies when renewal time comes to do a price comparison. Some companies offer loyalty discounts or lock in prices — something to look for.
Ultimately, a home warranty represents a few hundred dollars per year in your budget. But consider that a single AC compressor failure can cost $1,200, and with a warranty you'd cover most of that — it can easily pay for itself in the right situation. Of course, not every year brings a breakdown; some years you'll file no claims but still pay the premium. Factor this in as well when evaluating the cost-benefit for your own situation.
What Are the Alternatives to a Home Warranty?
If you're undecided about getting a home warranty, here are some alternative strategies to consider:
- Saving for unexpected expenses: Instead of paying for a home warranty, you could set aside the same amount each year to create your own repair fund. For example, putting $500 away every year exclusively for home maintenance and repairs means the money stays with you if nothing breaks. This works for those who can save with discipline — you could even put the money in a high-yield savings account and earn a little interest.
- Manufacturer warranties and extended warranty plans: Most newly purchased appliances come with a 1- or 2-year manufacturer's warranty. Similarly, some appliance stores offer extended warranties for purchase. If your home's appliances are new or you've purchased extended warranties from the store for key items (like the refrigerator or washer), you may not need a full home warranty — or you might choose a narrower plan. These individual warranty plans only cover the specific appliance, but they may sometimes be less expensive than a home warranty plan.
- Credit card appliance protection: Some credit cards offer extended warranty coverage on appliances purchased with them. For example, certain bank cards may add +1 year of protection on top of the manufacturer's warranty for major appliances. If this is available when you buy a new appliance, you can get protection at no extra cost.
- Your own contractors and maintenance plans: Some homeowners regularly work with trusted plumbers, electricians, or HVAC technicians. If you have an annual AC service done, get plumbing checked regularly, etc., you reduce the chance of failures. Building your own network of trusted specialists and calling them directly when something breaks is also a valid approach. This gives you more flexible choice of parts and repair methods — since warranty companies may opt for the cheapest solution, your own contractor might use higher-quality parts.
In short, the alternative to not getting a home warranty is to self-insure the risk or take advantage of device-specific warranty programs. If you're financially able to handle unexpected home repair costs, setting aside what you'd pay in premiums each year and waiting may make sense. In years you don't use it, you come out ahead; in years you do, you've effectively created your own coverage. But discipline and a bit of luck are factors: what if multiple major systems fail in the same year? That's exactly the scenario where a home warranty provides insurance-like protection (even though it's not technically insurance, the logic is similar). Based on your personal preference, you can choose between having a warranty or being your own safety net.
Home Warranty Pros and Cons
Finally, let's summarize the pros and cons of home warranty plans to make it easier for you to decide:
Home Warranty Pros:
- Protection against unexpected expenses: For homeowners with tighter budgets especially, a home warranty steps in when a very expensive repair is needed and eases the financial burden. For example, for an AC compressor repair that could run into the thousands, you can resolve it by paying only the service fee.
- Single-point service and convenience: When an appliance breaks, you don't have to scramble to find a contractor. You call the warranty company — accessible 24/7 — and they quickly dispatch an expert. This reduces stress and simplifies the repair process.
- Peace of mind in buying and selling: A home warranty is an assurance you give buyers when selling; if an issue comes up after the sale, the warranty company is the point of contact rather than you — protecting the buyer-seller relationship. For buyers, it provides peace of mind in their first year in the new home.
- Attractive for older homes: Older homes and appliances are more prone to breakdowns. A home warranty lets older homeowners keep the cost of frequent repairs under control — especially advantageous for homes with aging HVAC systems and water heaters.
- Easier budget planning: Since premiums and service fees are known in advance, you can roughly plan your annual home maintenance budget. Knowing you won't face a large repair surprise helps you when making your yearly budget.
- Transferability: Most home warranty plans can be transferred if the home is sold. This means they don't go to waste — the remaining term can be passed on to the new owner as-is. This can be an advantage, especially if you purchased coverage close to a sale.
Home Warranty Cons:
- Not everything is covered 100%: A home warranty is not insurance; every claim requires a service fee and policies cap annual payments per item. For example, if a repair costs $2,000 and the cap is $1,500, you're responsible for the remaining $500. In some repairs, the company may also opt for the cheapest solution (repair vs. replacement).
- Exclusions can come up frequently: Misuse, lack of maintenance, pre-existing conditions, natural disasters — in many scenarios, the company may deny payment. Any exception written in the contract can be cited as grounds for denial. In other words, it's not guaranteed (!) that every breakdown will be resolved by the warranty.
- Denied claims are costly: If the company denies your claim, you pay for the repair out of pocket and you've also paid your annual premium and service fee for nothing. In fact, your total cost could be higher than if you'd just paid for the repair directly without any warranty at all. This can leave you feeling like you've wasted money and time.
- Variable service quality and speed: You can't choose the technician who comes to do the repair — the company sends one. Some users may be unhappy with the workmanship of dispatched technicians, or there may be delays. The company's approval process can also take time. Sometimes a technician you call yourself might fix the problem the same day, while the warranty process might take 2–3 days.
- Goes to waste if unused: If you're lucky and your home has no breakdowns that year, the hundreds of dollars you paid in premiums will have generated no service in return. This follows the same logic as insurance (risk pooling), but psychologically it can create a "I paid for nothing" feeling.
- Annual renewal cost: A home warranty is an ongoing expense; if you get one year and then let it lapse, you lose coverage. Paying for 5–10 years in a row may actually total more than the few repairs you'd have during that period. Some people may find it's not worth it over the long run.
Conclusion: Home warranties are a tool with pros and cons. In Houston, Texas specifically, where the climate can be demanding (hot and humid weather can wear out appliances faster), the advantages may outweigh the drawbacks for many homeowners. But everyone's situation is different. If your home is new and problem-free, a warranty may be an expense you'll never use. If your home is old and full of appliances that haven't been serviced, the first repair alone could pay for it. Use the pros and cons above to make a decision based on your own circumstances.
Final Word
A home warranty is an important topic for homeowners and buyers, and making an informed decision about it is essential. In this post, I covered the questions "What is a home warranty, what does it do, how do you get one in Houston, who is it right for, and what should you watch out for?" comprehensively. In summary:
- A home warranty is an annual service contract that covers the cost of repairing major systems and appliances in a home when they break down — it differs from homeowner's insurance.
- In areas like Houston, buyers typically obtain a home warranty for the first year when buying a home; the cost can be covered by either the buyer or the seller, depending on negotiation.
- Coverage includes items like HVAC, electrical, plumbing, and appliances; structural damage and misuse are excluded.
- In terms of cost, it requires a few hundred dollars per year plus a fee for each service call; but in the event of a major breakdown, it protects your budget and provides peace of mind.
- While not required for every homeowner, it's a strong assurance and comfort factor — especially for first-time buyers or those in older homes.
- Alternatives to a home warranty include setting aside money for maintenance costs or managing with individual device warranties — entirely a matter of your risk preference.
In the end, a home warranty is an "optional safeguard" with benefits as well as limitations. What matters is making a well-informed choice by evaluating your home's specific needs and your own financial situation. If you do get a home warranty, be sure to read your contract carefully, set realistic expectations, and don't hesitate to advocate for yourself when necessary. Best wishes for your new home in Houston, and we hope you never need to file a claim — and if you have any questions about home warranties, don't forget to seek guidance from expert advisors!
Sources:
- Federal Trade Commission – Warranties for New Homes nerdwallet.com (Note that a home warranty is actually a "service contract," 2025).
- NerdWallet – What Is a Home Warranty? nerdwallet.com (Home warranty definition, process, and 2025 average cost analysis).
- American Home Shield – Home Warranty Closing Costs ahs.com (Who pays for the home warranty in real estate transactions, 2025).
- American Home Shield – What Does a Home Warranty Cover? ahs.com (Covered appliances, systems, and typical annual cost range).
- This Old House – Home Warranty vs. Home Insurance thisoldhouse.com (What home warranties exclude and average service fee, 2024).
- NerdWallet – Home Warranty Alternatives nerdwallet.com (Alternatives to consider instead of a home warranty, 2025).
- American Home Shield – Why Purchase a Home Warranty? ahs.com (Benefits for buyers and sellers, recommended by agents, 2025).
- NerdWallet – Home Warranty Coverage Tips nerdwallet.com (Notes on limits, exclusions, and differences from insurance, 2025).
- NerdWallet – Top Home Warranty Companies 2025 nerdwallet.com (Top home warranty companies for 2025, including major providers serving Houston/Texas).