Byline: Matthew Kayser
A look at how home warranty coverage works, and why timing your purchase matters less than people assume
On a quiet evening in Santa Clarita, California, a homeowner reaches into the refrigerator and notices the milk is warm. The compressor died sometime after sunset, and a repair could run several hundred dollars.
Moments like this are common: according to a Consumer Reports survey, 60% of U.S. homeowners have had a major appliance break down within the last five years, often with no repair fund set aside.
It’s a small moment, but it raises a bigger question many homeowners eventually face: what actually pays for a breakdown like this?
Home Insurance Covers the House, Not the Appliances Inside It
Homeowners insurance protects against sudden, unexpected events, such as fire, storm damage, or a burst pipe. It generally does not cover an appliance that simply wears out from regular use.
That gap is where a home warranty comes in. A home warranty is a service contract, not an insurance policy, and it operates under different rules.
A Home Warranty Functions Mainly as an Appliance Warranty
Despite the broader name, most home warranty plans center on appliances. Refrigerators, dishwashers, ovens, washers, and dryers make up the bulk of what’s covered, often alongside systems like HVAC, plumbing, and electrical wiring.
According to ThisOldHouse.com, refrigerators last nine to 13 years on average, and many major appliances need at least one repair before reaching that age.
You Don’t Have to Buy at Closing
A common misconception is that home warranties are purchased only when someone buys a house or an appliance. That isn’t accurate. Homeowners can sign up for home warranty coverage months or years after moving in, entirely online.
Most providers, including Select Home Warranty, let homeowners request a quote, compare plans, and enroll through a website in minutes.
The Financial Math Often Favors Coverage
Appliance repair costs add up quickly. Industry data compiled by InvoiceFly puts the nationwide average repair bill around $171, while major jobs involving a compressor or control board can run past $400.
A home warranty plan typically costs $40 to $60 a month, plus a service fee per visit, which can make several repairs in a year cost less than one major bill paid out of pocket.
Setting Realistic Expectations
A home warranty won’t cover every scenario. Plans often exclude pre-existing conditions, require maintenance records, and cap the amount they’ll pay toward a replacement.
Reading the contract closely, including waiting periods and coverage limits, helps homeowners avoid surprises when they file a claim.
Choosing a Provider Worth Trusting
Because every plan reads differently, the provider matters as much as the coverage itself. Select Home Warranty has received recognition from review platforms, including CNBC Select, largely for its pricing and roof leak protection included on every plan. Homeowners should still compare service fees, response times, and customer reviews before signing anything.
For homeowners in Santa Clarita and beyond, the lesson is simple. Appliances fail on their own schedule, not the one set by a home-buying timeline, and coverage can start whenever it makes sense.
DISCLAIMER: No part of the article was written by The Signal editorial staff.
