Is a home warranty worth it when buying or selling in Virginia?

A home warranty is a service contract that may pay for repair or replacement of specific systems and appliances. It isn’t insurance, and it isn’t an inspection.

Whether it’s worth it depends less on the price than on what the contract actually says. The details matter more than the brand.

What does a home warranty usually cover?

Most plans list systems and appliances such as heating and cooling, plumbing, electrical and kitchen appliances. When a covered item fails from normal wear, you call the provider, pay a service fee and the provider sends a contractor.

That’s the general picture, and the actual contract controls. Plans differ on what’s included, on dollar limits per item and on whether the provider can repair, replace or pay you a set amount.

Don’t assume a major item is covered because the brochure mentions it. Check the specific wording.

Where does a warranty fall short?

Exclusions are where most frustration comes from. Many contracts exclude pre-existing conditions, problems caused by poor maintenance and parts that fall outside the covered list.

Some require you to use the provider’s contractors, and response times vary. Ask how claims work, what the service fee is and what happens if you disagree with a denial.

A warranty also won’t tell you whether the roof is near the end of its life or whether the crawl space has moisture. That’s what an inspection is for. Our post on what happens at a Virginia home inspection explains what you’ll learn.

Should a buyer ask the seller for one?

It can be a reasonable thing to ask for, especially on an older home with aging systems and an inspection that raised questions. But remember it’s a trade: a seller who pays for a warranty has less to give elsewhere.

My read: a warranty is better as a budgeting cushion than as a repair plan. If you’d rather hold the money for repairs, a seller concession might do more for you. Our guide to seller concessions covers that choice.

Should a seller offer one?

Some sellers offer a warranty to make a listing feel lower risk to a buyer. It can be a modest cost that reassures a buyer, but it won’t make up for a price that is out of line with comparable sales.

If you offer one, name the provider and the plan in the contract so there’s no confusion at closing. Your agent can help you decide whether it fits your situation or whether pre-listing repairs would do more. See our post on repairs before listing.

How do I read a warranty before I buy it?

Four questions will tell you most of what you need:

1. What is covered, and what is excluded?
2. What is the service fee per visit?
3. Is there a dollar cap per item or per year?
4. Who chooses the contractor, and how fast do they respond?

If you can’t find clear answers, treat that as an answer.

What should I do next?

If you’re deciding between a warranty, a seller concession or a repair credit, we can look at the home and the inspection report with you and talk through the options. Start with our buyer page or contact the Glen Allen office. Written by Daniel Keeton.

This is general information. For questions about a specific contract, talk to a Virginia real estate attorney.