A home warranty benefits homeowners by providing reassurance that they can move in without worrying about shelling out even more for add-on or surprise repairs.

A home warranty can also benefit home sellers (if they don’t have it already), since it can cover these elements during the listing period; some home warranty companies even offer free seller’s coverage during this time with the hopes that the buyer will decide to continue the coverage. Often, home sellers will offer to pay for the first year of a buyer’s home warranty to entice buyers to bite.

But not everyone thinks home warranty companies are worth the cost. Typically a warranty isn’t necessary with new homes, since most of the appliances are already covered under manufacturers’ warranties. But in general, the older your home, the greater the odds that something’s bound to break, and the wiser it is to get a home warranty. Best of all? Not all home warranty companies differentiate between newer and older homes in terms of cost, making a warranty an especially cost-effective option if you are purchasing an older home.

Be sure to read the fine print on the contracts from a warranty company such as Home Service Club and Select Home Warranty. And remember, this type of warranty doesn’t usually cover pre-existing conditions and you may have to pay a deductible if something breaks.