Purchasing a home warranty can be a great way to ease some of the financial burden that new homeowners face when an appliance or major home system goes out. It's an extra expense, but the savings could be worth it. In this article, we'll provide an overview of what a home warranty is, how much it costs and if it's worth it. We'll also discuss how to read your contract and avoid common home warranty issues.
Home warranties are not the same as homeowners insurance, which is usually required by your mortgage company. Home guarantees are completely optional. However, if you bought a new home, many home systems are covered by the manufacturer's warranties. It's not worth buying a home warranty for a newly built home because you'll end up with duplicate coverage.
How Much Does a Home Warranty Cost?Home warranties are not expensive compared to the cost of repairing or replacing most important components of a home, and this fact is one of the main selling points of a warranty. When something that is covered by a home warranty fails, the landlord calls the home warranty company, which sends one of their service providers to examine the problem.
Are Home Warranties Worth It?
With all the costs of owning a home, the price of a home warranty that covers most or all of your appliances and systems can add up. It's definitely worth having a home warranty because you can't predict when your home systems or appliances will fail.Home warranties are worthwhile if there is no existing coverage for your appliances and home systems and if you find a plan that includes the items you want to cover, so you end up saving your money instead of wasting it. Common things covered by home warranties include household systems such as electricity, HVAC, and plumbing; and defects in large appliances, such as washing machines, dryers, and refrigerators.
Conclusion
Together, a home warranty and homeowners insurance protect you and your home from unexpected and important expenses. Repairs to your home can easily add up, especially if a new owner is still getting to know the place. So are home guarantees really worth it? With all the costs of owning a home, the price of a home warranty that covers most or all of your appliances and systems can add up.But if you find a plan that includes the items you want to cover, it could be worth it.
