Basically, no: Are home warranties worth it?
Seller provided home warranties are a scam to entice buyers to think if something goes wrong, they will be protected by the home warranty.
In reality, there are numerous exclusions and limitations on what is actually covered (think “pre-existing conditions” in health policies). The home warranty provider finds the lowest priced service tech to come in and do the minimal work, with the lowest cost parts.
We went through this a dozen years ago. The home warranty covered almost nothing – in a home that the seller had hidden numerous problems that were not discoverable via home inspection (two electricians called it the worst case of DIY home wiring they had ever seen in two decades of work – plumbing projects, hidden inside walls, had small leaks.)
Home warranties are a scam – the realtor persuades the seller to buy a home warranty policy. The home buyer will then have less concern about potential problems and buy the home, only to find out later that the policy covers next to nothing. The sole purpose of a home warranty is help persuade a buyer – but ultimately, many do not cover much.
The only thing you can do is hire a highly qualified home inspector [1], be present during the inspection and go around making your own notes and taking photos. Personally inspect everything that you can. You have to look out for yourself. Use a flashlight under sinks to look for leaks. Run all appliances through full cycles. Check all electrical switches, lights and outlets. A good inspector will do this for you – but not all inspectors are good, so make sure if something is missed, that you inspect it yourself.
[1] We once hired a home inspector who was the president of the local home inspectors association. We bought a home from out of town and were not present during the inspection. The seller’s agent was present during the inspection and, the seller later told us the seller’s agent told the inspector what items to include in the inspection report. There were life safety faults in the home that the inspector was aware of but did not put in the report. This included missing mortar between bricks in a fireplace and an obvious 12-inch long crack in the exhaust flue pipe from an oil-fired central furnace (in the report, these items were labeled in good condition). We reached a private agreement with him and he wrote us a check for a few thousand dollars to cover the repairs. I suspect the selling realtor paid him off to write this fraudulent report – and likely reimbursed him for the check he wrote us. Bottom line: While there are outstanding home inspectors (have hired some), and there are outstanding realtors (have hired several of them!), there is also much fraud in real estate transactions, unfortunately.
