Home warranties are a bit misleading in the way they make the home owner feel that “everything” is covered. It’s more like gap insurance and typically cover plumbing systems, appliances and the heating and cooling units. Say your water heater starts to leak and causes damage to the drywall and flooring of your home. The home warranty will only cover the cost of repair or replacement of the water heater and either you or your home owners insurance will have to cover the cost of the damage to your home. There is usually a service fee associated with making a claim on the warranty as well. I recommend that you have your home thoroughly inspected by a professional before closing and if everything checks out, then save your money for a rainy day. If the inspector feels that things are approaching the end of there useful life, then I’d consider buying a home warranty. Make sure to go with a warranty company that is established and has a good track record with it’s clients, as there are dozens of them to choose from.