Home Warranty When Buying a House: What You Need to Know

Buying a home is one of the most significant investments you'll make — and one of the most exciting. But after closing, unexpected repairs can quickly turn excitement into stress. That’s where a home warranty can help. It offers budget protection and peace of mind by covering repairs to systems and appliances that break down due to normal wear and tear.

In this article, we’ll break down what a home warranty is and why many buyers choose to get one when purchasing a house. We'll also guide you through when and how to buy coverage that fits your needs.

What is a Home Warranty?

A home warranty is a service contract that helps pay to repair or replace systems and appliances when they break due to normal wear and tear. It’s a simple way to help avoid surprise repair bills after you move into your new home.

A home warranty is different from homeowners insurance. Insurance covers damage from fires, storms, or theft, while a warranty covers everyday breakdowns — like when your HVAC stops working or your dishwasher breaks.

For many first-time buyers, a home warranty can be a smart choice, especially if your budget is tight after closing.

What Do Home Warranty Plans Cover?

Most home warranties cover major systems like HVAC, plumbing, and electrical, plus appliances like your refrigerator, oven, dishwasher, and washing machine. Some plans for home buyers include extra coverage, upgrades, or special pricing.

Coverage depends on the provider and the plan. That’s why it’s important to compare your warranty options and read the terms carefully before you buy.

How to Get a Home Warranty as a First-Time Home Buyer

Buying a home warranty as a first-time home buyer is pretty straightforward, but a little research can ensure you get the best coverage for your needs. If you’re working with an agent, talk to them about your options and rely on their expertise to choose the right coverage.

Here's a step-by-step guide to help you navigate the process:

Step 1: Research Home Warranty Companies

Begin by researching home warranty providers. Look for companies with strong reputations, positive customer reviews, and a history of reliable service. Pay attention to how long they've been in business, their claims process, and their range of coverage options.

First American Home Warranty, for example, has decades of experience in the industry and offers comprehensive coverage options. Its established reputation and extensive network of service providers make it a popular choice among homeowners nationwide.

When comparing providers, consider their service area (to ensure they cover your location), coverage levels, options, and upgrades for your specific needs.

Step 2: Choose the Right Plan

Home warranty plans offer different levels of coverage at various price points. When choosing your warranty plan, pay close attention to:

• The specific items covered by each plan.
• Available options and upgrades.
• Coverage limits for individual items. For example, if your new home has luxury appliances, you may be able to purchase upgraded coverage.
• Contract terms and conditions (the fineprint matters!).

First American Home Warranty offers flexible plan options designed to meet various needs and budgets. Its competitively priced plans offer generous coverage, with select options for your specific needs.

Step 3: Purchase a Home Warranty

Once you've selected a provider and coverage plan, here’s how you can purchase your warranty:

• Ask your real estate agent to order the home warranty. The cost is typically included in the closing process.
• Contact the warranty provider directly.

You may also be able to negotiate the coverage with the sellers and have them pay for the warranty at closing.

Step 4: Use the Home Warranty When Needed

When you get a home warranty while buying your home, you can start using your coverage as soon as the sale closes. With a First American home warranty, it’s simple to get help:

1. When a covered item breaks, contact us 24/7 online or by phone to request service.
2. We’ll dispatch a prescreened contractor who will contact you to schedule an appointment.
3. The technician will diagnose the issue, confirm coverage, and repair or replace the item as quickly as possible.

When Should You Get a Warranty When Buying a House?

It’s best to purchase your home warranty when closing on your new home. That way, your coverage starts when the sale closes and you’re protected from day one.

You can also purchase a home buyer’s warranty for up to 60 days after your home closes. In this case, your coverage will start as soon as you pay for the warranty. In both cases, you’ll still get enhanced coverage and the special pricing of a buyer’s home warranty.

More than 60 days after closing, you can purchase a standard home warranty for homeowners.

Can a Buyer Take Over a Home Warranty from a Seller?

A seller’s home warranty is typically a component of the buyer’s home warranty. If a seller opts to get a home warranty when their home is on the market, they get coverage during the listing period, and then the buyer receives coverage after the house closes.

At First American Home Warranty, it works like this:

1. The seller’s agent orders the home warranty when the home goes on the market.
2. After the seller accepts an offer, the seller’s agent updates the warranty contract with the buyer’s information and coverage options.
3. The buyer’s coverage starts on closing day and remains active for 12 or 24 months, depending on the plan. Buyers can typically renew their coverage.

Why Get a Home Warranty When Buying a House?

Home warranties offer numerous benefits for home buyers, especially first-time buyers:

• Peace of mind: You won’t have to worry about surprise repair bills right after closing.
• Helps with repair costs: Covers breakdowns from everyday use, so you're not paying out of pocket for every issue.
• Access to trusted pros: Warranty providers connect you with licensed, pre-screened contractors — no vetting or searching needed.
• Ideal for older homes: Great if your new place has aging systems or appliances that may be close to failing.
• Renewable coverage: Most plans let you renew each year to keep your home protected over time.
• Fills homeowners insurance gaps: Covers repairs for wear and tear — something homeowners insurance doesn’t handle.

Start Your New Home Off Right With a Home Warranty

A home warranty helps protect your budget and takes the stress out of unexpected repairs. It’s especially helpful if you’re a first-time buyer. You’ll get coverage for key systems and appliances and access to trusted service pros when something breaks. It’s one less thing to worry about as you settle into your new space.

Talk to your real estate agent about adding coverage — or get a buyers home warranty quote and order online today.