Home warranty renewal: what to do when your home warranty expires

Understanding post-warranty

Post-warranty is what happens after your warranty expires. Depending on the company you choose, several things can happen.

When your home warranty expires, your systems and appliances are no longer covered. Check your agreement to find out the cutoff date to see when your warranty is finished.

If you forget to renew your warranty, you may have to wait 30 days before the warranty will cover your systems and appliances again. If you renew your home warranty before it expires, there’s usually no waiting period because you have continuous coverage. To avoid having a lapse in coverage, make sure your policy is set to auto-renew or that you renew before the policy expires.

If your policy expires and you switch to a new home warranty company, you may need to wait 30 days for the new coverage to begin.

» LEARN: What is a home warranty?

What to think about before renewing your home warranty

Before you renew your home warranty, be sure to evaluate how your warranty has helped you over the last year:

• How often did you use the plan?
• Did you save any money by having a warranty plan?
• Did the warranty company offer good service?
• Did the provider deny any claims?

Whether a home warranty is worth it depends on your situation, according to Angel Conlin, chief insurance officer at Kin Insurance. For example, a home warranty can be worth it if:

• You don’t have an emergency fund for home repairs.
• You don’t have a reliable network of contractors.
• You’re not comfortable with DIY maintenance.
• You have old appliances and systems that are likely to break down soon.

If you did find some value in having the plan, also think about if you need that same level of coverage. Perhaps your systems were more prone to repairs than your appliances. In that case, it might be worth it to switch to a systems-only plan. If you didn’t need service that frequently, you might want to consider choosing a higher deductible, which will lower your monthly costs.

» MORE: Is a home warranty worth it?

How much does it cost to renew a home warranty plan?

Typically, you’ll simply pay the same amount you paid to start your home warranty plan. Some companies may offer you a discount if you pay to renew early or if you pay the yearly fee all at once instead of monthly. Home warranty plans typically cost $264 to $1,425 if you pay annually or $36 to $68 a month if you go with a monthly payment.

If your provider allows you to choose the service fee, consider changing this to adjust your monthly payments. If you don’t make many claims, it’s often better to pay the higher service fee and lower the cost of the plan.

» MORE: How much does a home warranty cost?

When shouldn’t you opt for a home warranty renewal?

You may find that you haven’t had the best experience with your home warranty company or wonder if it’s even worth it. There are a few occasions when a home warranty just doesn’t make sense:

• If you have a brand-new home and don’t foresee your systems or appliances breaking down soon, you may want to skip on a home warranty. Newer appliances and systems should also still be covered under the manufacturer’s warranty.
• If you haven’t saved any money by using your home warranty, consider putting the money you would have spent on a home warranty into a savings account earmarked for repairs. “While you won’t have the luxury of someone else taking care of your problem, you will have cash on hand for emergencies,” Conlin explained.
• If you’ve had a bad experience with your home warranty provider or the company has denied your claims, it might be best to either discontinue the plan or switch to a more reliable home warranty company.

Bottom line

Home warranty renewal is all about continuing coverage for your home's systems and appliances. When your initial warranty ends, you can renew to keep those protections going. When your warranty expires, you lose coverage for things like your HVAC, plumbing or kitchen appliances like the fridge or stove. If you want to keep coverage, make sure to renew early to avoid a lapse in coverage.