When Not to get a Home Warranty

What may be considered a home warranty may not be a home warranty after all. The traditional definition of a home warranty would be considered that contractual agreement that is made available to a home owner by a risk management group, home builders or any other group that comes with the same claim. In many cases, the home warranty could not be considered as such but rather as a home service contract. In the United States for example, this would just cover the repair/replacements costs of appliances as well as heating and cooling systems. In some cases, it could also cover other home components as well as the structural bit. The contract coverage would entirely vary dependent on the various home warranty companies. It must be well known that these contracts don’t cover all the home repairs as many would probably have in mind.

When is a home warranty bad?

It may be considered entirely paranoid that a home warranty would get to a point of being bad but that’s basically a truth that needs to settle. While getting a home warranty may be considered an inexpensive affair especially to one purchasing a house with old appliances, it has its own cons which may not appeal to the home owner. Here are a few of the circumstances that would render a home warranty bad.

A home warranty that lacks financial sense

Before paying for that home, all one prays for is that they receive value for their money and basically getting a home warranty is supposed to aid in protecting that fact. Well, this may not be the case especially for home warranties which reflect no financial sense at all. A new home for example that has new appliances and a 90-day warranty may be considered irrelevant in terms of the warranty. This is because, considering the state of the house and the appliances, the amount of time the items would remain functional would automatically render the warranty irrelevant and therefore future anomalies may not get a hearing on the then warranty that would have outlived its clauses. This is basically a pronounced irrelevance in the financial sense of such a home warranty.

A home warranty with conflicting clauses

Well, you may think you are protected only to realize you got yourself in a fix. Some clauses that come with the home warranties guarantee protection in regard to specific circumstances. This is in terms of having one clause making sense when another is fully implemented. For example, the home warranty may state that all the systems in the house must be operational for the validity of the contract. In such a case, neglecting minor maintenance like not cleaning the air-conditioner coils may get another system not to receive the repair or replacement cost that might have seemed obvious for reception. Such clauses need one to keep their eyes open during the purchase, before they can deem themselves to have a home warranty.

Lack of choice in the repair companies

While it may seem appealing to have to choose who gets to work on your repairs, home warranties may be disappointing enough to let you know that you don’t have the privilege of such a provision. This may be disappointing enough especially in a case where the home warranty assigns a repair company that is not keen to your needs. It therefore limits a home owner to the service that the warranty will have to offer even if poor. It is therefore wise to pay some closer look to your home warranty before you can start enjoying the benefits of the new house; you’re not sure how long that will last. Play safe.

Cory White
Meet the author

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.

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