What is a home warranty?

A home warranty is a service contract that pays the cost of repair or replacement of covered items, such as major kitchen appliances, as well as electrical, plumbing, heating and air conditioning systems.

Some pros and cons of going with a home warranty


  • A home warranty can provide peace of mind if you’re purchasing a home with used appliances and older systems.
  • Your home warranty company generally takes care of finding and hiring a trusted professional.


  • Claims can be denied by the home warranty company if an item has not been properly maintained.
  • Home warranty companies impose dollar limits per repair or per year.
  • Not all costs are always covered by the home warranty, and you’ll have to pay for a service call fee each time you have an issue.
  • Home warranty companies determine whether to fix or replace a system.

My story

I had an issue with my water heater and I contacted my home warranty company on Friday. A plumbing company was dispatched on Monday. The plumbing company were not able to fix the issue so had to come back on Tuesday. However, they cannot resolve the issue either on Tuesday after arriving 2 hours late with no phone call. So on Wednesday (the day before Thanksgiving), we requested to dispatch a different plumbing company who fixed the issue quickly in a professional manner on Wednesday afternoon. So don’t assume all plumbing companies dispatch by the home warranty company are good. Some can be unreliable and incompetent while others are professional and can get the job done.

Are home warranties worth it?

That depends. From my experience of using a home warranty company, I would not recommend it. Instead, I would build an emergency fund for unexpected expenses later on. As an homeowner or investor, you have the option to build an emergency fund for unexpected expenses later on. You can hire a contractor to do the work if something breaks. However, if you decide to go with a home warranty, be sure to check its rating with the Better Business Bureau. Go with at lease an A rating.


Kong Property Management Group provides property management and leasing services to the greater part of Silicon Valley. We specialize in single-family homes, condos, townhomes, duplexes, as well as apartment buildings. Based in San Jose, Kong Property Management Group is a local and family-owned business with over 15 years of combined experience in residential property management, real estate sales, and appraisal.