10 Home Warranty Questions Answered: Cost, Timing and Denied Claims (2026)

Updated October 2026. Answers to the home warranty questions buyers and sellers ask us most, checked against the FTC, the Texas Real Estate Commission and Armadillo’s own pages on October 27, 2026.

Yes, you can usually buy a home warranty at any time, not just at closing. The catch is timing: most plans make you wait before the first claim, often 30 days (Armadillo’s standard plans, October 2026), while a buyer’s plan bought at closing can start that day. Warranties don’t cover known problems, and claims get denied most often over pre-existing conditions, missing maintenance or coverage caps.

Jump to: 🏠 Basics · 💲 Cost · ⏱️ When to buy · 🤝 Denied claims · ❓ FAQ

We’re a brokerage, not a warranty company. Warranties come up in a lot of our deals, though, as a buyer request or a seller credit. Here are the ten questions we hear most, answered plainly.

1. What is a home warranty, and how is it different from insurance?

A home warranty is a service contract. It pays to repair or replace covered appliances and home systems that fail from normal wear and tear: think the HVAC, water heater, dishwasher, washer and dryer, plumbing and electrical.

Homeowners insurance is different. The Texas Real Estate Commission explains it this way: insurance covers loss from things like theft, weather and fire, but typically not an appliance or system that simply wears out. That’s the gap a warranty fills. TREC also notes that a warranty contract is not required when you buy a home.

2. What does a home warranty cover, and what doesn’t it?

Coverage depends on the plan. A typical base plan covers major appliances plus plumbing and electrical. Mid and top tiers usually add heating and air conditioning. Add-ons can cover pools, well pumps, septic, sewer lines and extra fridges.

Common exclusions are almost the same everywhere:

• Known pre-existing problems, meaning items you knew were damaged before the plan started.
• Intentional damage or damage from poor upkeep.
• Anything not listed in the contract. As the FTC puts it, if it isn’t listed, assume it’s not covered.
• Costs above the plan’s per-item or total coverage limit.

Armadillo’s FAQ is a good example. It excludes known pre-existing conditions and intentional damage, but its buyer plan covers unknown pre-existing conditions on covered items.

3. How much does a home warranty cost?

Expect a monthly or yearly fee, plus a deductible or service fee each time a tech comes out. On October 27, 2026, Armadillo’s pricing page showed three plans:

Armadillo’s FAQ also says prices can vary with location and plan, so get a quote for your ZIP code. It charges the deductible at the service visit, once per covered breakdown, even if the repair takes several visits.

Do the math the FTC suggests: divide the cost by the length of coverage, add likely deductibles, and compare that with what a repair would cost you out of pocket. Some owners do better putting the same money in a savings account.

4. Can I buy a home warranty at any time?

Usually, yes. You don’t have to be buying or selling. Most companies sell plans to current owners year-round. Expect a waiting period, though. Armadillo’s example: buy on July 1 and you can file a first claim from August 1.

Buying a home changes that. A buyer’s plan ordered for closing often starts on the closing date. Armadillo’s buyer plan has no waiting period and starts at closing.

5. Can a seller buy a home warranty during the listing?

Yes. Some sellers buy one to cover breakdowns while the home is on the market, then pass it to the buyer. Others offer to pay for the buyer’s first year as a credit in the deal. Either can make a buyer more comfortable with an older furnace or water heater.

Armadillo’s FAQ says it can add a plan to a home you’re selling. If you’re weighing that against a price cut, our guide on how much to sell your home for helps you compare the two.

6. How do I file a claim?

With most companies, you log in online or call. With Armadillo, you file through the Armadillo portal here or by phone. Its digital platform takes requests at any hour, with people on the phone during working hours.

Many plans let you use your own licensed contractor. Armadillo allows it if you tell them before any work starts, so they can approve the cost and reimburse you. Skipping that step is a common reason a claim gets refused.

7. Why do home warranty claims get denied, and what can I do?

Searches for denied claims, from Maryland to Tennessee, tend to come back to the same handful of reasons:

• The problem existed before coverage started, or the waiting period hadn’t ended.
• The company says the item wasn’t maintained.
• The part or system isn’t listed in the contract, or the cause is excluded (like code upgrades).
• The repair went over the plan’s coverage limit.
• Work was done without approval first.

If yours is denied, ask for the reason in writing and the contract section it relies on. Gather maintenance records, receipts and the tech’s report, then appeal in writing. If that fails, the FTC says to report problems with service contracts to ReportFraud.ftc.gov and to your state attorney general. In some states a separate agency licenses these companies: in Texas it’s the Texas Department of Licensing and Regulation, per TREC.

For a dryer or other appliance denial, check whether the plan caps that item and whether the tech blamed lack of maintenance, like a clogged vent. Those are the two usual sticking points.

8. Are home warranties worth it?

It depends on the age of what’s in your home and your cushion for surprise bills. A warranty makes more sense when the big systems are older, you don’t know their history, or a $1,000 repair would hurt. It makes less sense for new construction, where builder and manufacturer warranties still apply, or if you’d rather self-insure with savings.

Check the company’s track record before you sign. The FTC suggests searching the company name with “complaint” and “review” and asking your state consumer protection office about complaints. Our Armadillo review shows that kind of check, with prices, terms and a balanced sample of customer reviews.

9. How long does a home warranty last?

Most run month to month or for one year, renewable. A buyer’s plan bought at closing usually covers the first year in the home. If you sell, many companies let you transfer the plan or start a new one at your next address; Armadillo says it will help you move coverage to your new home.

10. Should I ask the seller for a home warranty when I buy?

You can, and it’s a common ask. It’s one more term to weigh next to price, repairs and closing costs. Our guides on writing an offer letter, what happens after your offer is accepted and who pays closing costs show where a warranty credit fits. A warranty doesn’t replace an inspection, and it doesn’t replace the seller’s duty to disclose known problems.

Planning updates after you move in? See our notes on home remodeling pros and cons and improving your kitchen. Investors buying a rental should also read why investors should consult a lawyer before buying.

Buying with Beycome

Beycome’s buyer program is open to every buyer on homes listed by other agents, with no upfront fee. We keep 1% of the price (minimum $1,499) and credit the rest of the buyer-agent commission at closing, with lender approval. On a $400,000 home with 3% offered, that’s $8,000 back, which could pay for a warranty many times over. The credit can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers.

That 3% is an example only. Commissions are not set by law or by NAR rules, and they’re fully negotiable. Sellers choose whether to offer any buyer-agent compensation, and how much. Since August 17, 2024, those offers can’t be shown on the MLS.

Selling instead? A flat fee MLS listing starts at $99 with $0 to Beycome at closing, and you decide whether to offer a warranty to buyers.

Frequently asked questions about home warranties