A home is often the largest investment an individual will make in their lifetime, and it’s common to worry that something could go wrong after closing day. Purchasing a home warranty is a great way to protect yourself against the many things that could break or malfunction in any house.
But what if you’re years into owning a home and you’ve been paying for a home warranty you haven’t yet needed? You may be wondering, should I renew my home warranty? We’ve gathered up 5 things to consider about home warranty renewal.
Evaluate Your Home’s Needs
Before renewing your home warranty, consider how likely it is that you’ll need to use it within the next year. Things to consider include the age of your appliances, and if you’ve had any issues with them in the past. It’s less likely you’ll need a home warranty if you have a new home with new appliances and fixtures. One visit from an HVAC technician can often pay for the program itself.
Can You Lower Your Home Warranty Cost?
The cost of a home warranty often varies depending on the type of property and whether the homeowner purchases a basic or an extended plan. When you compare the cost of a home warranty to the cost of replacing numerous components in a home, you just might realize your home warranty is less expensive than you once thought. When considering whether you should cancel or keep your home warranty, stay open to changing your plan or provider to lower your costs.
What Are the Benefits of Your Home Warranty?
The purpose of a home warranty is to protect against events and repairs that can be expensive and are often unexpected. Home warranties can act as a buffer if the homeowner wants to protect their emergency fund, or if they don’t have one. If a homeowner has little knowledge of how well the home’s appliances and fixtures have been maintained, a home warranty acts as priceless protection.
Are There Any Drawbacks to Your Home Warranty?
One drawback that home warranties often have is they don’t cover items that have been improperly maintained. This is often a gray area and can cause disagreements between home warranty companies and their customers. Pre-existing conditions are sometimes used improperly to deny valid claims. Another issue is that home warranties have exclusions and dollar limits per repair as well as per year.
Consider What You Can Afford to Protect Your Home
A practical consideration to make is evaluating what you can afford to fix should something go wrong in your home. If your furnace breaks down, can you afford to have it replaced? Without a home warranty, you might need to have an emergency account that can be used to pay for unforeseen repairs that may have to be made. Time is also a factor to consider.
A home warranty is not a perfect solution to the risks one faces as a homeowner. Before you sign up for another year, ask yourself, should I renew my home warranty? Be sure to take the factors above into consideration. You might also want to take a look at in-depth reviews of the best home warranty companies, in case you could switch providers for better value.