Home warranties are gaining popularity – and for a good reason. These contracts – sometimes called home protection plans – allow homeowners to pay a monthly fee for systems and appliance repair coverage. You’ll have peace of mind knowing you’ve budgeted ahead of time for unexpected, often costly, repair and replacement needs.

Now is the time to act if you’ve considered purchasing a home warranty plan for your systems and appliances. We’ll explain why now is an excellent time to invest in a financial safety net and why a home service contract may be right for you.

Why You Should Consider a Home Warranty in 2023

Whether you’re seeking a financial tool for a strained family budget or need help choosing a trustworthy contractor, a home warranty may be the perfect solution.

The following sections will discuss three reasons you shouldn’t wait to enroll in a home protection plan. We’ll also discuss coverage options, current events, and cost considerations to help you make the best choice for your home.

Broader Coverage Availability

One reason to invest in a home warranty right now is that the coverage is more comprehensive than ever. Providers that once covered the most basic appliances and systems now cover items like hot tubs, septic tanks, roofing, and swimming pools. Better yet, home warranty companies offer customizable plans that allow you to cover systems, appliances, or a combination of both. Once you select your base plan, you can purchase optional add-on coverage for all your specialty items.

Some providers, like American Home Shield, even offer customizable pricing. Like other types of insurance contracts, home warranties have deductibles you must fulfill before coverage kicks in. These deductibles come in the form of service call fees, which you’ll pay to the repair technician each time one provides service. American Home Shield allows you to choose from various per-service deductibles to customize your monthly premium. Generally, a higher service call fee generates a lower monthly premium and vice versa.

More Complex Systems and Appliances

The past few years have seen a rise in more complex and advanced home systems. In fact, the average expenditure on household equipment saw a 12% increase from 2019 to 2020. The COVID-19 pandemic caused many homeowners to spend far more time at home – often sleeping, eating, working, and playing in the same spaces. This increased time at home led many homeowners to invest in systems and appliances that make everyday life more convenient.

People bought smart appliances that complete multiple tasks simultaneously. They installed multi-use ovens to make cooking at home a breeze. With all of these technologies comes the possibility of costlier, more frequent repair needs. A solid home warranty plan can eliminate the stress of fixing even the most advanced home systems by covering their expensive repairs.

Inflation Rates and Spike in Home Prices

Home prices have skyrocketed over the past several years. Properties are selling for $100,000 over the asking price in some areas, leading many potential buyers to fork out far more than expected for homes that barely meet their criteria. The current market requires people to either continue renting for exorbitant rates or bite the bullet and put down outrageous offers to get their feet in the door.

The bottom line is that things cost more than ever right now. Inflation has reached 9.1%, which is the highest it’s been in nearly 40 years. This means everything from gas to groceries has a bigger price tag.

Homeowners struggling to budget during this unprecedented time should consider investing in a home warranty. A service contract is especially important for homeowners with brand-new appliances and systems. Warranties don’t cover items with pre-existing conditions, so it’s best to sign a contract before your items have the chance to develop any issues. With a service contract in place, you’ll have the coverage you need in case something happens and have peace of mind knowing the repair costs can fit into your already-strained budget.

Final Thoughts

Now that you understand the importance of a service contract in 2023, you can set out to find the best home warranty company for your items and budget. There are some fantastic options on the market, each with its own coverage options and price ranges.

If you need a little help deciding on the perfect plan, don’t sweat. We’ve got comprehensive company reviews for the industry’s top providers.

Frequently Asked Questions

What Is the Cost of a Home Warranty Plan?

The cost of your home warranty plan will depend on several factors, including plan type, deductible, location, and the home’s square footage. A service contract typically costs between $500 and $700 per year. Plans with these price ranges can cover up to $20,000 worth of repairs, so the investment is well worth it.

Monthly premiums typically cost between $50 and $70, making the contract much more manageable. Service call fees – the deductible you’ll pay out of pocket for each visit – range from $50 to $125, depending on the plan you select.

What Do Home Warranties Cover?

Home warranties cover normal wear and tear on your home’s appliances and systems. “Wear and tear” refers to the damage items incur by operating over time.

The table below shows items typically covered by a home warranty contract:

Appliances Home Systems Optional Add-Ons
  • Refrigerator
  • Oven
  • Stovetop range
  • Dishwasher
  • Built-in microwave
  • Washing machine
  • Clothes dryer
  • HVAC system
  • Air conditioning ductwork
  • Electrical panels
  • Plumbing systems
  • Water heaters
  • Central vacuum
  • Secondary refrigerator
  • Stand-alone freezer
  • Sump pump
  • Septic tank system
  • Roof leaks
  • Swimming pool
  • Spa


Home warranties don’t cover pre-existing conditions or damages caused by improper installation or failed maintenance. Read a policy’s fine print before purchasing to fully understand what it does and doesn’t cover.

What Is the Best-rated Home Warranty Company?

House Method recommends Choice Home Warranty for your service contract needs. This provider has over 13 years of experience in the home warranty industry, making it a long-standing, trusted provider in the space. Choice offers a free 30-day cancellation and 90-day repair guarantee, making it a solid option for stress-free coverage.

Editorial Contributors
Alora Bopray

Alora Bopray

Staff Writer

Alora Bopray is a digital content producer for the home warranty, HVAC, and plumbing categories at Today's Homeowner. She earned her bachelor's degree in psychology from the University of St. Scholastica and her master's degree from the University of Denver. Before becoming a writer for Today's Homeowner, Alora wrote as a freelance writer for dozens of home improvement clients and informed homeowners about the solar industry as a writer for EcoWatch. When she's not writing, Alora can be found planning her next DIY home improvement project or plotting her next novel.

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Roxanne Downer


Roxanne Downer is a commerce editor at Today’s Homeowner, where she tackles everything from foundation repair to solar panel installation. She brings more than 15 years of writing and editing experience to bear in her meticulous approach to ensuring accurate, up-to-date, and engaging content. She’s previously edited for outlets including MSN, Architectural Digest, and Better Homes & Gardens. An alumna of the University of Pennsylvania, Roxanne is now an Oklahoma homeowner, DIY enthusiast, and the proud parent of a playful pug.

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