Do You Need a Home Warranty?

By The Roddy Luxury Group

When buying or selling a home in Naples, Florida, one question often comes up during negotiations: Do you need a home warranty? For some homeowners, a warranty provides peace of mind and short-term protection. For others, it may offer limited value depending on the age, condition, and complexity of the home.

As Naples real estate experts, we at The Roddy Luxury Group believe the decision to purchase or offer a home warranty should be informed, strategic, and aligned with your specific property and goals. Understanding what a home warranty does—and just as importantly, what it doesn’t do—can help you decide whether it’s the right choice for your transaction.

A home warranty is a service contract that covers the repair or replacement of certain home systems and appliances due to normal wear and tear. Unlike homeowners' insurance, which protects against sudden damage or loss from events such as storms or fire, a home warranty focuses on mechanical failures.

Typical coverage may include HVAC systems, electrical components, plumbing, water heaters, kitchen appliances, and sometimes pool equipment. Coverage varies widely by provider and plan, making it essential to read the fine print.

In many Naples real estate transactions, home warranties are used as a negotiation tool rather than a long-term solution. Sellers may offer a warranty to reassure buyers, particularly when systems are older or when a buyer is unfamiliar with homeownership responsibilities.

For buyers, especially those relocating from out of state or purchasing a seasonal residence, a home warranty can provide a buffer during the first year of ownership.

Home warranties tend to be most beneficial in specific scenarios. If you’re purchasing an older home with aging systems, a warranty can offer temporary protection against unexpected repair costs. This is particularly relevant in Naples, where some properties may have been renovated aesthetically but still contain original mechanical components.

First-time buyers or those unfamiliar with Southwest Florida homes may also appreciate the added peace of mind. The ability to make a single service call rather than sourcing multiple contractors can feel reassuring during the adjustment period.

In newer homes or recently renovated luxury properties, a home warranty often provides less benefit. Many high-end appliances and systems are already covered by manufacturer warranties, and homeowners may prefer to work directly with trusted local vendors rather than third-party warranty companies.

Additionally, home warranties often come with service fees, coverage caps, and exclusions. In luxury homes with complex systems—such as advanced HVAC configurations, custom appliances, or integrated smart-home technology—warranty coverage may be insufficient or unavailable.

One of the most common misconceptions about home warranties is that they cover “everything.” In reality, warranties are highly specific. Pre-existing conditions, improper installation, lack of maintenance, and certain components are often excluded.

Response times can also vary, which may be inconvenient during peak season in Naples when contractor demand is high. Understanding these limitations upfront prevents frustration later.

Naples’ climate places heavy demands on HVAC systems, plumbing, and pool equipment. Air conditioning systems, in particular, run nearly year-round. While some warranties cover HVAC repairs, coverage limits may not align with the true cost of replacement in a coastal environment.

For this reason, many Naples homeowners prioritize thorough inspections and proactive maintenance over reliance on a warranty.

For sellers, offering a home warranty can be a strategic move in certain situations. It may reduce buyer concerns, limit post-closing disputes, and make a listing more appealing in competitive or transitional markets.

However, in high-end Naples properties, buyers often focus more on inspection results, system age, and renovation quality than on warranty coverage. Whether a warranty adds value depends largely on the target buyer and the condition of the home.

In many cases, investing in a comprehensive pre-listing inspection, completing key repairs, or providing service records can be more impactful than offering a home warranty. Buyers tend to value transparency and quality over generalized coverage.

For homeowners, setting aside a dedicated maintenance reserve and establishing relationships with reliable local contractors can provide greater flexibility and control than a warranty plan.

At The Roddy Luxury Group, we don’t take a one-size-fits-all approach. We evaluate each property individually, considering age, condition, system complexity, and buyer profile before recommending whether a home warranty makes sense.

Our goal is always to protect our clients’ interests—financially and strategically—while ensuring a smooth transaction in the Naples real estate market.

No. Home warranties are optional and are not required by lenders.

Either the buyer or seller can pay, depending on negotiations.

No. A home inspection is essential and should never be skipped because of a warranty.

Typically, no. Warranty companies usually assign service providers.

Some do, but renewal is optional and should be reviewed annually.

Deciding whether you need a home warranty depends on your property, your goals, and your expectations. At The Roddy Luxury Group, we help buyers and sellers evaluate these decisions with clarity and confidence. If you’re navigating a purchase or sale in Naples, connect with The Roddy Luxury Group and receive trusted, personalized guidance every step of the way.