What a Home Warranty Actually Covers
A home warranty is a service contract — typically 1 year — that covers repair or replacement of major home systems and appliances: HVAC, plumbing, electrical, water heater, refrigerator, dishwasher, oven. Coverage varies significantly by provider and tier. Home warranties do NOT cover pre-existing conditions identified in the inspection, code violations, or cosmetic issues. They cover mechanical breakdown under normal use.
The Seller's Case For Offering One
For homes with aging systems — an HVAC unit over 10 years, a water heater over 8 years, appliances nearing end of life — a home warranty is a proactive way to reduce buyer objections without making capital improvements. It signals confidence in the home, costs $400–$700 for the year, and can be the item that tips a nervous first-time buyer toward writing an offer. In Cincinnati's entry-level market ($250K–$400K), where buyers are stretching their budget, this matters more than it does at the top of the market.
When It's Not Worth It
If your home has a new roof, new HVAC, new appliances, and a recent inspection showing clean mechanical systems — a home warranty adds less value because the risk it covers is low. In a hot seller's market with multiple offers, buyers are already comfortable enough to compete without a warranty sweetener. Reserve the warranty as a tool for slower markets, older homes, or as a post-inspection repair-credit alternative.
Best Providers in Ohio
The main home warranty providers active in the Cincinnati area include American Home Shield, Choice Home Warranty, and First American Home Warranty. Costs run $400–$700 for a year of coverage, with optional add-on coverage for pools, well pumps, and septic systems. Before selecting, read the exclusions carefully — the coverage tiers with low monthly premiums often have high per-claim deductibles that reduce the practical value significantly. I typically recommend sellers offer a mid-tier plan that covers HVAC and appliances comprehensively.