By David Parks · eXp Realty · The Apollo Group · 2 min read
A home warranty is a service contract that covers repair or replacement of certain appliances and systems for a fee. Whether it is worth it depends on the home’s age, the coverage, and the limits.
Plans typically cover items like HVAC, plumbing, electrical, and major appliances, but coverage and exclusions vary widely. Pre-existing conditions and improper maintenance are often excluded.
You pay an annual fee, plus a service fee per visit. Some sellers offer a warranty to buyers as an added incentive.
Read the contract carefully, including caps per item, what is excluded, and how claims work. Compare to setting aside your own repair fund. An inspection helps you see which systems are older.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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