When a home warranty is worth it, and when it's not.

A home warranty covers repair or replacement costs for home systems and appliances due to normal wear and tear, offering peace of mind and budgeting help. It’s most valuable for older homes with aging appliances or systems, or when sellers offer coverage. It may not be worth it if you have emergency savings, new appliances, or if coverage limits and contractor quality are poor. Costs range from $33 to $140 monthly, plus service fees. Careful plan selection and understanding exclusions are essential.