Buying a home warranty could save you money and give you peace of mind. But it’s important to evaluate a few key factors before deciding whether or not it’s worth it.
Be sure to choose a company with a clear contract that describes standard coverage, upgrades and exclusions. Also, be aware that previous lapses in maintenance may negate the coverage. Be sure to do your research on the best home warranty company with good reviews and experience.
1. Do You Need It?
Home warranty providers offer a range of plans, so it’s important to research the companies you’re considering. Read online reviews and check the Better Business Bureau (BBB) for complaints before making a purchase. You’ll also want to compare prices and coverage to ensure you get the best value for your money.
Home warranties can be a good investment for new homeowners who may have depleted savings or limited knowledge of the age and condition of appliances and systems in an older home. These buyers are especially susceptible to unexpected repair costs.
Additionally, many home warranty providers require that an appliance or system be repaired before it will be replaced. This may not make sense for a homeowner who is looking to upgrade an outdated appliance or system. In these cases, a home warranty might not be worth the cost. Instead, it might be wise to invest in a home improvement fund or budget for future repairs and replacements.
2. Do You Want It?
If you’re a first-time buyer, a home warranty can provide a safety net in case something breaks down after you move in. It can also be useful if you’ve used up most of your savings to buy a new home and want to protect yourself from unanticipated repair expenses. With a warranty in place, you can simply call the company to make a claim and they will take care of the rest.
3. Do You Have the Money?
Home warranties often cover repair costs for appliances and systems that don’t have manufacturer’s warranties. They can also help with unexpected expenses, such as replacing a broken refrigerator or repairing a leaking roof.
However, it’s important to remember that a home warranty is not insurance. While it can save you money on repairs, it won’t protect your home against damage from natural disasters or property crimes. But it is something people don’t realize can help you save money.
4. Do You Want to Save Money?
A home warranty may seem like a good deal, but the exact cost of the service depends on the specific policy. Before purchasing a home warranty, read the contract closely and evaluate its terms and conditions. The contract should include what is and is not covered, actions that can void the warranty and how much the service call fee or deductible will be.
New homeowners often purchase home warranties to alleviate some of the financial burden they face when common appliances and systems break down. Similarly, sellers may want to sell their homes more quickly and provide buyers with peace of mind that they’re not stuck with costly repairs after they move in.
5. Do You Want to Have Peace of Mind?
Home warranties are great for reassuring new homeowners and providing them with a safety net against expensive, unexpected repairs. But it’s important to do your research and weigh the pros and cons before signing up for one.
When researching providers, ask about yearly premiums, deductibles, and coverage options. For example, some plans offer a limited number of appliances, while others include systems like plumbing and electrical. It’s also important to read sample contracts carefully to make sure you’re getting the coverage you need.
6. Do You Want to Sell Your Home Faster?
In a seller’s market, it can be tough to sell a home, even if it’s in great condition. If you want to entice buyers to make an offer on your home, offering a home warranty can be a good incentive.
A home warranty is particularly attractive to first time home buyers, who may not be used to dealing with the costs of home ownership and repairs. It can also help
reassure buyers who are concerned about issues revealed in a home inspection report.
When buying a home warranty, it’s important to choose a company with a good reputation and a wide variety of coverage options. You should also consider whether or not the plan will be transferable to a new homeowner. If it is, you’ll be able to sell your home faster and have peace of mind knowing that the buyer will be covered.