Video — Is A Home Warranty Worth It?

A "home warranty" is frequently available at the time of purchase, and may even be a tool in negotiating terms.

These warranties provide protection for a short period of time — like 1 year — against unexpected costs in home systems and appliances. A failed heater or oven, for example, might be covered by a home warranty.

This financial protection in the period immediately after home purchase can be helpful, especially if down payment and closing have drained cash reserves.

Home warranty may not be an option after purchase, so consider the benefits and costs prior to finalizing your deal.