Do You Need a Home Warranty?

Buying a home is a major investment, and protecting that investment is often a top priority for new homeowners. If you’ve recently purchased a property in Mooresville, NC, or plan to do so soon, you may be asking yourself whether a home warranty is worth the additional expense.

While home insurance protects against unexpected disasters like fire or flooding, a home warranty focuses on the systems and appliances you use every day. It can offer peace of mind, but it’s important to understand what’s covered, what’s not, and how it fits into your specific situation.

A home warranty is a service agreement that covers the repair or replacement of home systems and appliances that fail due to normal wear and tear. This can include items like HVAC systems, plumbing, electrical systems, water heaters, kitchen appliances, and more. Unlike homeowners insurance, which is designed to cover major damages from events like storms or fire, a home warranty deals with everyday functionality.

Mooresville homeowners often find home warranties beneficial during the first year of homeownership, especially when moving into an existing property where the age and condition of systems may be uncertain. That said, the decision depends heavily on the home’s age, your budget, and your personal tolerance for risk.

Mooresville, located along Lake Norman and known for its mix of new developments and older homes, presents a variety of housing conditions. Buyers who purchase newer construction may not need a home warranty, especially if the builder already offers a limited warranty for the first year. However, those buying resale homes, particularly ones built in the early 2000s or before, often benefit from having a plan that covers older components.

• Uncertainty about the condition of existing systems in older homes
• Limited maintenance history from previous owners
• Budgeting for unexpected repair costs in the first year of ownership
• Wanting to avoid the hassle of finding contractors independently

It’s also worth noting that some home warranty companies have established service provider networks in the Lake Norman area, which can lead to quicker repairs and better customer service.

Coverage varies between providers and plans, but most standard home warranties cover the following:

• Heating and cooling systems (including HVAC)
• Electrical systems and wiring
• Plumbing systems and stoppages
• Water heaters
• Kitchen appliances (oven, dishwasher, built-in microwave, etc.)
• Washer and dryer

Optional add-ons might include pool equipment, septic systems, or a second refrigerator. In Mooresville, where many properties include outdoor amenities or guest suites, these upgrades may be useful depending on your specific property.

Home warranties don’t cover everything, and it’s essential to read the fine print. Most contracts do not cover:

• Pre-existing conditions
• Poor installation or code violations
• Cosmetic issues
• Items still under the manufacturer warranty
• Structural components of the home

Also, limits on repair costs may apply, so it’s smart to review how much coverage each item receives. For example, a warranty might cover HVAC repairs up to $1,500, with anything beyond that requiring out-of-pocket payment.

In many Mooresville real estate transactions, the seller offers to pay for a one-year home warranty as part of the purchase agreement. This can serve as an incentive for buyers and also protects the seller from potential post-sale complaints if a covered system fails soon after closing.

However, buyers can also purchase their own policy, typically costing between $350 and $600 annually, depending on the level of coverage and add-ons. Renewal rates and service call fees should also be considered when comparing providers.

Not every homeowner needs a warranty, but certain situations make them more valuable. If any of the following applies to you, it may be worth investing in one:

• You’re buying an older home with outdated systems
• You don’t have an emergency fund large enough to handle major repairs
• You’re relocating to Mooresville from out of state and want service coordination support
• You’re managing a rental property and need cost predictability for repairs

There are several national home warranty providers that serve the Mooresville area. When selecting a plan, make sure to compare not just pricing but also:

• Customer service reviews from North Carolina residents
• Service provider network and contractor availability nearby
• Response times and claim handling processes
• Limits and exclusions for key systems like HVAC or plumbing

Working with a real estate professional during this process can help narrow down reputable options and identify plans that offer value based on your home type and location.

One common misunderstanding is that a home warranty can replace regular maintenance. In reality, most contracts require that systems be properly maintained in order to qualify for coverage. This means:

• Having your HVAC system serviced at least once a year
• Clearing plumbing lines and keeping water heaters flushed
• Replacing filters and batteries where appropriate

Home warranties are intended to protect against unforeseen failures, not wear caused by neglect.

If a covered system breaks down, the homeowner contacts the warranty provider, who then dispatches a local technician. A flat service fee—typically around $75 to $125—is paid at the time of service. If the repair is covered, the warranty covers the cost up to the contract limit.

If replacement is needed, the provider will usually choose the brand and model, which may not match your existing appliance exactly. This is another detail to clarify before selecting a warranty provider.

Deciding whether you need a home warranty is a personal decision that depends on the condition of your property, your financial planning, and your comfort level with potential repairs. Erin Ficenec is here to help you navigate every aspect of homeownership in Mooresville, NC, from buying your first home to understanding long-term maintenance options.

With local experience and a deep understanding of the Lake Norman market, Erin provides insights tailored to your property, your neighborhood, and your lifestyle. Whether you're buying, selling, or exploring protection plans for your investment, Erin Ficenec offers the guidance and service you need to move forward with confidence. Reach out today to start a conversation about your next steps.