Answers by Tom Pelton

Home warranties aren’t a scam—but they’re not a guaranteed win either. They’re worth it if the home has older systems, the buyer doesn’t have cash reserves for repairs, or you want peace of mind and a smoother transaction. In those cases, one repair can easily justify the cost. They’re usually not worth it for newer homes, people who like to choose their own contractors, or homeowners with savings who can handle repairs themselves. Bottom line: it’s not about saving money—it’s about reducing risk and stress.