Is a Home Warranty Worth It

Prices checked 2026-08-28

Appliance age (years)

Plan cost per year ($)

Service fee per claim ($)

USUALLY A LOSS

0.52expected repairs / yr

$98.80gross claims value / yr

$-320.20your net / yr

4.24×claims needed to break even

You would need claims worth about 424% more than the plan costs to break even. Home warranties are sold on convenience, not expected value - keeping a self-insured repair fund usually beats them.

The uncomfortable arithmetic

Warranties are priced so the typical household never claims enough to cover the premium. You are buying capped downside and a phone number to call, not a profit. If you can hold a four-figure emergency fund, self-insuring usually beats the plan – the numbers above show why.

It is a genuinely good deal for exactly two households: older appliance stacks, and people who cannot absorb a surprise $600 repair this month.

Important: FixForesight publishes national cost ranges from public data. It is not a contractor, and this is not a quote. Get two local quotes before you authorise work.
Full disclaimer · Affiliate disclosure · How we price