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What’s a Home Warranty?

What’s a Home Warranty?

July 26, 2023 By Crescent City Living

When purchasing a home in New Orleans, especially an older one, it’s common for buyers to wonder about the lifespan of mechanical systems and appliances. And it’s understandable! Air conditioners may fail, water heaters may spring leaks, and stoves may decide to stop lighting. The joys of homeownership mean you have to deal with these issues as they arise. But a home warranty can bring you peace of mind, ensuring that you’ll be covered for repairs if something breaks after you’ve moved in.

While homeowners’ insurance primarily covers property damage and the structure of your house, a warranty is there to provide protection for your appliances and systems. It’s a wise investment to ensure the safety of your home but remember, it’s not a substitute for homeowners’ insurance. Also, manufacturer warranties may cover certain home systems for recent home purchases.

What’s covered by a home warranty?

There are several different levels of home warranties, but here’s what is usually covered by them.

  • Heater and Air conditioner
  • Ductwork
  • Drain line stoppage and plumbing leaks
  • Hot water heaters
  • Garbage Disposal
  • Electrical systems
  • Garage door openers
  • Dishwashers
  • Trash compactors
  • Oven/range/cooktop
  • Built-in Microwaves
  • Washer/dryer/refrigerator

There are some premium warranties (at a higher cost, of course) that will cover swimming pools, roof leaks, slab leaks, and septic tanks.

What’s the cost?

Every home warranty company is different, but the warranty will generally cost around $750 for one year of coverage. Each time an owner has to call for repairs, there will be a trade call fee of about $100. Try getting a plumber to show up for that price! Like any other insurance policy, there are limits to coverage, so be sure to review your policy to understand what’s covered and what’s not.

PRO TIP: Ask your agent how to negotiate a warranty as part of your home purchase.

Renewing your home warranty

As a homeowner, you have the option to renew the warranty every year, but it’s at the discretion of the warranty company. This basically means if you’ve had too many claims, they won’t renew after that first year.


Have questions about home warranties and home buying? Give us a call at 504-327-5303 and we’ll be happy to tell you more. 

Filed Under: Buyers Tagged With: home buying, home maintenance

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