Is Home Warranty Worth it?
Buying a home is one of the largest investments that one can ever make in a lifetime. However, every home is going to need repairs in future. The last thing that every home buyer wants is to worry about his/her things breaking or malfunctioning at any given time. This is so especially to a first home buyer. There are numerous items or systems in a home that can be affected overtime. Therefore, any wise homeowner should consider purchasing a protection plan for peace of mind. This is why home warranty is important.
What is home warranty?
Home warranty is a specific type of investment or a document that is issued to the home owner by numerous organizations such as insurance companies or risk management groups.
From a legal point of view, any warranty that is issued in the US must stick to federal and state guidelines. However, the wordings of this statement do not say clearly that this warranty is a legal warranty by definition. Basically, it is best described as home service contract or agreement.
Is home warranty worth it?
One of the most questions asked by majority of home owners is whether or not home warranty is worth their money. The truth is it is really worth investing in. With a home warranty, one will not have to worry about experiencing losses from damaged home appliances. Almost every home in the recent years comes with a warranty to ensure their investment is secure. Some of the areas covered by the warranty include:
- Basic appliances- these includes ovens, stoves, microwaves, dryers, washers and more.
- Plumbing fixtures- these include duct work, electrical, hot water heaters, toilets, sinks, and tubs.
- Mechanical systems-these include systems such as air conditioning and heating.
Other components such as windows and appliances, which are covered by manufacturer’s warranty, can also be covered in a home warranty and so it is important to inquire about this.
A home warranty keeps your account secure by covering the cost of a breakdown on major home appliances and systems that in most cases cause a major expense. Home warranty is worth it because even its cost is relatively minimal averaging from $500.00 a year and covers the repair or replacement of home items and appliances.
In most cases, companies will favor repair over replacement but it will all depend on the level of damage. However, experiences using home warranties vary with many people claiming to have saved thousands of dollars in repair costs per year.
The truth is purchasing a home warranty would probably be the best decision one can ever make. It would probably start making sense in the first year after owning a home, when ones money tends to be tight and reserved funds for maintaining a home are low. One might want to consider purchasing this warranty if home systems are old and one is willing to settle for repairs even when Manufacturer Company refuses to authorize a replacement.
The worth and importance of a home warranty greatly depends on a home owner’s choices and priorities. If one thinks that the coverage meets their needs, then it is a wise decision to purchase one. Renewing a warranty after expiry date is one of the things to consider as a home owner. Whatever one does, before making the final decision to purchase a home warranty, one should read the service contract carefully to be sure of what is covered. Check carefully for exclusions. But all in all, home warranty is really worth the money!
Cory is the go-to home warranty expert and has worked in the industry for over 10 years. Cory currently resides in Missouri with his wife and 2 sons.