Is a home warranty inspection worth it?

What is a home warranty inspection?

Buying a home is a significant investment and comes with several added costs. Similar to homeowners insurance, a home warranty can cover the cost of fixing or replacing certain items in your home. While insurance covers damage related to covered perils, like theft or a fire, a warranty can pay the costs to repair or replace covered appliances and major systems.

A home warranty inspection is a detailed assessment of a home’s structure and major systems and appliances. An inspector will assess the condition of these items and give a detailed report on their findings. While a home inspection typically takes place during the homebuying process, you can request an inspection at any time for your home.

The goal of a home warranty inspection is to make both the homeowner and warranty provider aware of any preexisting problems with major appliances and systems covered by the policy. Some policies exclude preexisting conditions, so you’ll want to address these issues before signing up or look for a policy that doesn’t have this exclusion.

Some of the areas an inspector will focus on include:

• HVAC, electrical and plumbing systems
• Roof and gutters
• Attic and basement
• Walls, ceilings and floors
• Foundation and exterior structures
• Door and windows
• Kitchen appliances

Note that this is a comprehensive inspection, but not all these items will be covered by a home warranty. The major systems and kitchen appliances should be covered in a policy. Some companies offer roof leak protection, while others don’t.

Keep in mind that an inspector might not check the washer and dryer or refrigerator, but those items are part of most home warranty programs. If you haven’t signed up for a policy yet, you can typically find sample contracts on a company’s website, so review what’s covered and any exclusions beforehand.

Once you have this detailed report, the inspection will help protect you against disputes with your provider and ensure the terms of your policy align with the state of your appliances and systems.

» MORE: Home inspection checklist for buyers

What are the pros of a home warranty inspection?

Home warranty inspections come with several considerable advantages for homeowners.

• Detailed assessment: It gives you a clear picture of your home’s systems and appliances.
• Reduces surprise problems: Since a licensed inspector checks everything, you can find out about hidden issues before something breaks.
• Prevents disputes: The inspection report makes it less likely you’ll argue with the warranty company about what is or isn’t covered.
• Chance to fix things early: If problems are found, you can repair or replace items before signing up for a warranty, making sure you’re fully covered.
• Better preparation: By knowing what might need repairs soon, you can budget and plan ahead.

» LEARN: Is a home warranty worth it?

What are the cons of a home warranty inspection?

There are also some drawbacks to getting a home warranty inspection.

• Potential for higher costs: If the inspection finds big problems, you could end up with higher premiums or less coverage. Some repairs might not be covered if they were preexisting.
• Upfront expense: Inspections usually cost $200 to $500, which is an extra cost on top of your warranty premium. If you already had an inspection when buying your home, this may feel like a duplicate cost.
• Possible disputes: Even with an inspection, there’s still a chance the warranty provider might disagree with the findings during a claim, since inspections are done by third parties.

Should you get a home warranty inspection?

Knowing when a home warranty inspection is really worth it depends on your home’s age, condition and situation.

When a home warranty inspection is valuable:

• Older homes (10+ years): Inspections can find aging systems or hidden issues, helping you avoid claim denials for preexisting conditions. If your home’s major systems or appliances are getting old, consider an inspection.
• After major renovations or repairs: If you’ve recently updated your electrical, plumbing or HVAC, an inspection documents their condition and can help avoid disputes later.
• Before selling your home: A pre-listing inspection provides transparency for buyers and supports warranty coverage, possibly making your home more attractive.
• In high-risk regions: Homes in areas with extreme temperatures, flooding or hard water may benefit from inspections to document system vulnerabilities and make sure you’re eligible for coverage.

When a home warranty inspection may not be worth it:

• New construction or recently built homes: Most new homes have builder warranties. An extra inspection is usually not needed unless a specific warranty provider asks for it.
• Recently inspected homes: If you’ve already had a standard home inspection in the past year, especially after buying the home, another inspection may not add much value.
• Limited coverage needs: If you only want coverage for one appliance or system, the cost and effort of a full inspection may not be justified.

Think about your home’s age, recent repairs, local risks and your exact coverage needs to decide if a home warranty inspection is a good investment.

Bottom line

Is a home warranty inspection worth it? It depends.

Home warranty inspections are helpful for identifying preexisting problems with your home and its systems and appliances. They also provide a paper trail between you and your warranty provider, making disagreements on what’s covered far less likely. Inspections can save you from unexpected repair bills, since they may alert you to issues you can fix before they get worse.

The main downside is the cost of the inspection itself — and unexpected repair expenses could easily offset some of the savings of having a home warranty in the first place.

If you’re someone who values a clear and detailed understanding of the state of your home, getting an inspection makes sense.