Most homeowners think of a home warranty as a one-year safety net, something to test out and renew if it proves useful. But what happens when you keep that coverage going year after year? Does it still save money? Does it become more or less valuable over time? In this blog, we explore a multi-year case study that tracks a real homeowner’s repair expenses with continuous home warranty coverage over a five-year period.
From major system failures to smaller service calls, we’ll break down the actual costs, what was covered, what wasn’t, and how the plan performed long-term. If you’re wondering whether it’s worth renewing your home warranty beyond the first year, this breakdown will give you clarity and numbers, not just opinions. Let’s dig into the results and find out whether long-term coverage truly pays off in the world of home maintenance.

The First-Year Advantage: Why Most Homeowners Start with Coverage

The first year of homeownership is often the most unpredictable and that’s exactly why many homeowners decide to purchase a home warranty right after closing. Whether it’s offered by the seller, recommended by a real estate agent, or added by the buyer for peace of mind, coverage during year one serves as a financial cushion against the unknown. In many cases, the appliances and systems in a newly purchased home aren’t brand new, and their condition isn’t fully known until they’re put to the test.
In our long-term case study, the homeowner purchased a 15-year-old single-family home and enrolled in a home warranty plan immediately after closing. The annual premium was $625, and the service fee was $85 per claim. Within the first 12 months, the homeowner filed three claims: a leaking dishwasher, a broken thermostat, and a plumbing backup in a secondary bathroom.
Without a warranty, these repairs would have totaled:
Dishwasher replacement: $750
Thermostat repair: $250
Plumbing service: $400
Total: $1,400
With the warranty:
Premium: $625
Three service fees: $255
Total: $880
That’s a savings of $520 in the first year alone — and more importantly, the homeowner didn’t have to scramble to find a plumber or HVAC tech on short notice. The warranty provider handled dispatching, scheduling, and follow-up.
This first year is often where homeowners decide if a warranty is truly worth keeping. In this case, the answer was yes. Not only did it save money, but it also simplified the process of navigating new-home repairs, especially for someone still learning the ropes of maintenance and home systems.
Many homeowners who have a positive first-year experience especially when claims are approved quickly and service is reliable are more likely to renew for another year. The logic is simple: if the plan helped in year one, it might be even more valuable as the home ages.
In the next section, we’ll explore what happened in years two and three and how the warranty’s value evolved as the homeowner’s repair patterns shifted and usage frequency changed.

Year 2 to 3: Repair Trends and Coverage Shifts

By the second year, many homeowners feel more comfortable in their space but that’s also when wear-and-tear on systems and appliances begins to show. For our case study homeowner, years two and three proved that even when there’s a lull in major breakdowns, having a home warranty continues to provide both peace of mind and real financial value.
In year two, the homeowner filed two claims: one for a malfunctioning garbage disposal and another for a laundry dryer that suddenly stopped heating. While both issues were less urgent than the first-year plumbing or thermostat failures, they still came with inconvenient timing and moderate repair costs.
Without a warranty, the out-of-pocket total would have been around $700:
Garbage disposal replacement: $300
Dryer heating element: $400
Instead, with the warranty still in place, the homeowner paid the $625 premium and $170 in service fees ($85 per claim), totaling $795 just slightly more than paying for the repairs outright. However, the homeowner noted a major benefit: convenience. With one call, each issue was resolved quickly, and both contractors arrived within 48 hours. There was no need to compare pricing or search for reviews.
Year three brought more activity. The home’s aging HVAC system began to show signs of wear, and a claim was filed for a failed capacitor in the outdoor A/C unit. Later that year, a slow leak was discovered in the refrigerator’s water line, and the homeowner also requested service for a misaligned garage door opener.
These three service calls would’ve cost approximately $1,050 without coverage:
A/C capacitor replacement: $500
Refrigerator water line and valve repair: $350
Garage door opener adjustment: $200
With the warranty still active, the homeowner paid the $625 annual premium and $255 in service fees, a total of $880, resulting in a savings of $170. More importantly, the HVAC repair came during peak summer months, and the warranty provider prioritized the service, sending a technician out the same day.
As the home aged into year three, the homeowner began to see more frequent and costlier issues. The warranty wasn’t just a safety net anymore; it was becoming a smart, consistent tool for handling ongoing maintenance.
Next, we’ll look at years four and five, when high-value claims and aging systems put the warranty coverage to the ultimate test.

Year 4 and 5: Major Breakdowns and High-Value Claims

As the home crossed the five-year mark since the initial purchase, the effects of aging systems and appliances became more noticeable. While the first three years involved moderate repair issues, years four and five brought more serious and expensive problems that tested the value of continued home warranty coverage.
In year four, the HVAC system experienced a major failure. The blower motor gave out during the early summer, resulting in a complete system shutdown. Shortly after, the oven stopped maintaining temperature, and a technician confirmed that the control board had shorted out.
Here’s what these repairs would have cost without coverage:
HVAC blower motor replacement: $1,100
Oven control board + labor: $500
Total out-of-pocket: $1,600
With the home warranty, the homeowner paid the $625 annual premium and $170 in service fees for two claims. Total cost: $795, resulting in a savings of $805.
In year five, more issues surfaced. The water heater, original to the home, began leaking and needed replacement. Additionally, the garage door opener completely failed and required a full motor replacement. This year marked the highest use of warranty services since year one.
Out-of-pocket costs without warranty would have been:
Water heater replacement (including removal/installation): $1,400
Garage door opener motor replacement: $450
Total: $1,850
Warranty-covered costs included the $625 premium and $170 in service fees again a total of $795, with savings of $1,055.
By this point, the homeowner viewed the home warranty not as optional, but essential. The growing age of systems and appliances led to increasingly expensive repairs, and the warranty consistently delivered value by reducing both costs and service stress.
Another key benefit emerged during these years: speed of service. Since these were high-priority repairs, such as a leaking water heater and no functioning A/C during the summer, the warranty provider prioritized dispatch and had a technician out within 24 hours for both emergencies.
As the home’s systems aged past the 15- to 20-year mark, the long-term benefits of continuous coverage became more evident. In the next section, we’ll compare total expenses over the five-year span with and without warranty protection to determine the true financial impact.

Cost of Staying Covered vs. Paying As You Go

After five years of homeownership with a home warranty, the numbers speak for themselves. To get a clear view of the financial impact, we compared the total expenses paid by the homeowner under warranty coverage versus what the same repairs would have cost out of pocket.
Here’s how it breaks down over the five-year period:
With a Home Warranty:
Annual premiums (5 years): $625 × 5 = $3,125
Total service fees (13 claims at $85 each): $1,105
Total spent over five years: $4,230
Without a Home Warranty (estimated costs for same repairs):
Year 1: $1,400
Year 2: $700
Year 3: $1,050
Year 4: $1,600
Year 5: $1,850
Total without warranty: $6,600
Total savings with warranty coverage: $2,370 over five years
Beyond the numbers, there were other long-term benefits that don’t show up directly in the financial column. Each time a repair was needed, the warranty provider handled the scheduling and service management. That meant no long waits, no stress comparing prices, and no panic during peak seasons when repair companies are often booked weeks out.
The homeowner also avoided “repair hesitancy” , the common situation where people delay fixes due to cost concerns. With the warranty, there was no need to put off repairs or hope the issue didn’t get worse. That proactive approach likely extended the life of some systems and prevented secondary damage.
It’s important to note that not every warranty plan or provider delivers the same level of value. In this case study, the homeowner chose a reputable provider with high claim approval rates and good customer service. That decision played a big role in ensuring the warranty continued to pay off year after year.
In the final section, we’ll summarize when long-term coverage makes the most sense, who benefits most from staying covered, and how to evaluate whether it’s worth renewing your plan annually.

When Long-Term Coverage Makes Sense (and When It Doesn’t)

Not every homeowner needs a home warranty for five years straight but for many, long-term coverage proves to be a smart investment, especially as the home ages. The key is knowing when the benefits outweigh the costs and how your home’s condition, systems, and lifestyle factor into that decision.
In the case study, the homeowner began coverage immediately after purchasing a 15-year-old home. Over five years, they encountered a steady stream of moderate to major repairs, and their warranty consistently delivered savings and simplified service. But that outcome isn’t universal.
Long-term home warranty coverage makes the most sense when:

• Your home is more than 10 years old and major systems haven’t been recently replaced
• You don’t have a large emergency fund for home repairs
• You prefer predictable costs and want to avoid the stress of sudden repair bills
• You value having service coordination handled for you by the provider
• You live in an area where qualified contractors are in high demand or hard to schedule quickly

On the other hand, a multi-year warranty might not be necessary if:

• You recently purchased a new construction home with builder warranties
• You’ve replaced most of your home’s major systems and appliances in the last few years
• You’re handy and comfortable doing minor repairs yourself
• You prefer to self-insure and save for potential repairs instead of paying premiums

It’s also important to evaluate the provider before committing to long-term renewal. Plans and service quality vary greatly between companies. Before renewing each year, review your usage, satisfaction with service, and whether the systems most at risk are still covered. If your provider offers loyalty discounts or coverage upgrades, that may be another reason to continue.
Ultimately, long-term coverage isn’t about avoiding all home repair costs it’s about reducing risk, protecting your budget, and gaining convenience as your home ages. For many homeowners, those benefits become more valuable each year, making the warranty an essential part of their home management strategy.
In conclusion, we’ll summarize the biggest takeaways from this five-year journey and help you decide whether extending your home warranty is the right call for your home.

Summing It Up: Predictable Costs, Fewer Surprises

Over five years, this case study showed that a home warranty can consistently save money, simplify repairs, and reduce stress especially as systems age and breakdowns become more frequent. While not every home or homeowner needs long-term coverage, those with older properties, limited savings, or a desire for predictable costs often see clear value in renewing year after year.

The key is choosing a reliable provider and reassessing your needs annually. When the numbers add up and the service holds strong, long-term home warranty coverage isn’t just convenient, it’s a smart, ongoing investment in your home’s future.