Home Warranty vs. Home Inspection: What Each One Actually Does

Buyers mix these up all the time. They do very different jobs.

A home inspection is information

An inspection happens before you buy, usually during your option period. A licensed inspector looks at the home's systems and components and documents their condition, with photos. You use that to decide whether to buy, what to ask the seller to fix, and what to budget for.

A home warranty is a service contract

A home warranty (in Texas, often called a residential service contract) is something you buy, or the seller buys for you, that may help pay for repairs or replacement of certain systems and appliances after you own the home. You usually pay a service fee each time a technician comes out.

Why one doesn't replace the other

• Pre-existing problems are commonly excluded. If the AC was already failing when you bought the house, read the contract closely before counting on it.
• Coverage has limits. Caps on what they'll pay, items that aren't covered at all, and conditions like "lack of maintenance" are common.
• A warranty doesn't tell you anything before you buy. The inspection is how you find out about the roof, the foundation or the water heater before it's your problem.

How they work together

The best approach is usually both. The inspection tells you what you're getting. A warranty can be a helpful budget cushion for the things that wear out after you move in. And the inspection report is good documentation of the home's condition on the day you bought it.

Tips if you get a home warranty

• Read the coverage list and the exclusions before you sign.
• Check the cap on major systems like HVAC.
• Keep your inspection report and your maintenance receipts. They help if a claim is questioned.

What comes with a Cardinal inspection

Qualifying inspections include my 90-Day Inspection Warranty and Buyers Protection Program, which are separate from a home warranty you'd buy. Ask me how they work, or see the FAQ.