Should You Offer a Home Warranty When Selling in Florida?
October 1, 2026 · 8 min read · By Onias Derilus, Broker
A home warranty costs a few hundred dollars and can ease a buyer's worries about aging systems. Here is what plans cover, what they cost, how Florida contracts handle them, and when they are worth it.
A home warranty when selling is a service plan, paid at closing, that helps the buyer repair or replace covered systems and appliances that break down in the first year. In Florida, the standard contracts have a line for it, so it comes up in most deals. Some sellers offer one up front to calm nervous buyers. Others wait to see if a buyer asks. This guide is for sellers in Palm Beach County, Hobe Sound and Port St. Lucie. It covers what a plan covers, what it costs, how the contract handles it, and when it is worth the money.
Key takeaways
- The Florida Realtors AS IS contract lets the parties pick who pays for a home warranty at closing, buyer or seller, with a cap on the cost.
- Fixr's national figures put a plan at $400 to $700 a year, with an average near $600. Service call fees of about $75 to $125 are extra.
- Plans cover breakdowns from normal wear and tear. They generally do not cover problems that existed before coverage began.
- In Florida, home warranty companies need a license from the Office of Insurance Regulation.
- A plan can help an older home with aging systems. It does not replace repairs, inspections or homeowners insurance.
What a home warranty when selling actually covers
The Florida Realtors AS IS contract describes it well. It says a home warranty plan provides for repair or replacement of many of a home's mechanical systems and major built-in appliances in the event of breakdown due to normal wear and tear during the warranty period.
In practice, that usually means things like the AC, water heater, plumbing and electrical systems, and kitchen appliances. Items like pools and roofs may be add-ons, limited or left out, depending on the plan. Each plan sets its own list, limits and exclusions, so read the actual contract, not just the brochure.
Florida law defines a home warranty in Chapter 634 of the Florida Statutes. Under section 634.303, no one may provide or offer home warranties in the state without a license from the Office of Insurance Regulation. So check that any company you consider holds that license.
How Florida contracts handle a home warranty when selling
Paragraph 9(e) of the AS IS contract has check boxes. At closing, the buyer, the seller or neither ("N/A") pays for a plan from a named company, at a cost not to exceed a dollar amount the parties fill in. So the decision gets made in writing when the offer is signed.
That cap is useful. If you agree to pay, you know your limit, and the buyer can pick a plan within it. Then the fee is paid out of closing funds, so you don't write a separate check.
Also note what the AS IS contract does not do. It doesn't turn a warranty into a promise about the home's condition. Paragraph 10(j) says the seller extends and intends no warranty about the physical condition, apart from the duty to disclose known facts that materially affect value and are not readily observable. A home warranty plan is a separate service contract with a third party.
What a home warranty costs
We could not find a reliable published price list for plans in Palm Beach County or St. Lucie County. So the figures below come from Fixr's national cost guide, updated in January 2025. Get quotes for your own address and home size.
Plan price
Fixr puts the national range at $400 to $700 per year, with an average near $600 for a combined systems and appliance plan. Larger homes, pools, extra AC units and add-ons can raise the price.
Service fees and caps
Each claim usually comes with a service call fee. Fixr lists an average range of $75 to $125. In addition, most plans cap what they will pay per item or per year. So a buyer with an old AC may still face a big bill if the replacement cost tops the cap. Read the limits closely before you choose a plan.
Home warranty coverage when you are selling
Some companies offer coverage for the seller while the home is on the market. The idea is that if the AC fails during the listing, the plan handles the repair, and the buyer's plan takes over at closing. Terms vary a lot, so ask whether a listing period plan is available, what it covers and how claims work.
Also keep up your own duty to maintain the home. Paragraph 11 of the AS IS contract asks the seller to keep the property, including lawn, shrubbery and pool, in the condition it was in on the contract date, except for ordinary wear and tear. A plan can help pay for a repair, but you still need to get it done before closing.
When a home warranty helps you sell
A plan costs a few hundred dollars. In return, it can take some worry off the table. It tends to help most in these cases.
Older homes and systems
If your AC, water heater or appliances are near the end of their life, buyers will notice. A warranty does not make them newer. However, it can give a buyer some comfort about the first year. Our guide to selling an older Florida home covers the bigger issues, like roofs and four-point inspections, that a warranty won't solve.
Condos and slower markets
Market speed matters. In August 2026, Palm Beach County condos and townhouses had 6.7 months of supply and a median of 69 days to contract, per Miami Realtors. Single-family homes had 3.5 months and 40 days. When buyers have more choices, small extras can help a listing stand out.
Out-of-town and estate sales
Sellers who don't live in the home often can't speak to how the systems have run. A plan can fill some of that gap for the buyer. Still, it is not a substitute for disclosure of anything you do know.
When a home warranty won't help you sell
A plan is not a fix for a known defect. Most plans generally exclude problems that existed before coverage began. So if the inspection finds a leaking water heater, offering a warranty will not satisfy the buyer. In that case, a repair or credit is the real answer. Our guide to repair requests after inspection walks through those choices.
A plan also won't help much when the home is new or recently updated, when the buyer is an investor planning a remodel, or when the home is priced as-is for a quick sale. In those cases, the money may do more as part of the price.
Finally, it is not insurance. Florida insurers look at roofs, plumbing, electrical and heating. For example, Citizens Property Insurance requires a four-point inspection for homes more than 20 years old. A warranty does not change what an insurer will write.
Home warranty vs. repair credit vs. price cut
Sellers have three common ways to address a buyer's concern about systems. Each one has a place.
- Home warranty. Low cost and easy to add. Best for general worry about aging systems that still work.
- Repair credit. Money at closing toward a specific problem. Best when the inspection finds a real defect. Check the buyer's loan limits on credits.
- Price cut. Lowers the price for everyone. Best when the home needs more than one fix or the market says the price is high.
Compare each option by your net, not by the headline. A $600 plan that keeps a deal together can be a better result than a $5,000 price cut later.
How to choose a plan
If you agree to pay, let the buyer weigh in on the company and plan, since they will use it. Then check these points together:
- Is the company licensed by the Florida Office of Insurance Regulation?
- What systems and appliances are covered, and what is excluded?
- Is there a cap per item or per year?
- What is the service call fee?
- Are the pool, extra AC units or a guest house covered, or are they add-ons?
- How are pre-existing conditions defined?
- How fast do contractors respond in your area?
Then decide how to present it. If you offer a plan up front, your agent can mention it in the listing remarks and in talks with buyers' agents. That way, buyers see it before they write an offer. If you would rather hold it back, keep it as a tool for later. For instance, a plan can be a cheap way to close a small gap after the inspection, when a buyer is nervous but the systems still work. Either way, put the cap in writing in paragraph 9(e), so no one is surprised at closing.
Frequently asked questions
Should a seller offer a home warranty when selling in Florida?
It can help with older systems, condos and slower markets. It is less useful for new homes, investor buyers or homes with known defects. Decide with your agent based on your home and your buyer pool.
Who usually pays for the home warranty?
Either side can. The AS IS contract lets the parties choose the buyer, the seller or no plan, with a cost cap. It is a point of negotiation like any other.
Does a home warranty cover pre-existing problems?
Generally not. Plans cover breakdowns from normal wear and tear during the coverage period. A known defect is better handled with a repair or credit.
Does the buyer get the home warranty when I sell?
A plan bought at closing under paragraph 9(e) is for the buyer. If you already have your own plan, read its terms or call the company about transfer or cancellation.
Is a home warranty the same as homeowners insurance?
No. Insurance covers sudden losses like storms and fire. A warranty covers breakdowns from wear and tear. Lenders require insurance, not a warranty.
Sources
- Florida Realtors, AS IS Residential Contract for Sale and Purchase
- Florida Statutes, section 634.301 (definitions)
- Florida Statutes, section 634.303 (license required)
- Fixr, Home warranty cost
- Citizens Property Insurance, FAQs on four-point inspections
- Miami Realtors, Palm Beach County August 2026 home sales
Not sure a warranty is worth it for your home? Book a no-obligation listing consultation, and we will look at your systems, your price point and your likely buyers before you decide. Book a listing consultation or check what your home is worth. Buying instead? Talk to a buyer's agent about homes in Boca Raton or Port St. Lucie.
