If you’re in the process of buying a home, chances are that you’ve asked yourself if a home warranty is worth it. Unlike homeowners insurance, which protects the homeowner in case of natural disaster or theft, a home warranty will come in handy if you have to deal with issues with repair issues or broken appliances.
When Is a Home Warranty Worth It?
If you’re considering a brand-new construction home, buying a home warranty probably won’t be a concern, as many builders provide them in the purchase price. But if you’re buying an older house, having a home warranty might save you a considerable amount of money in the long run. It can be particularly attractive for people with limited savings after buying a home.
Property maintenance can be very costly, especially if some of the key components give up within a short period of time. If an element breaks, the homeowner covered by the home warranty only has to call the warranty company. They’ll send out one of their approved service providers to take care of the issue. And you won’t be stuck with a huge repair bill.
On the downside, you won’t have any control over who the home warranty company sends out. But in order to be covered, the repairs have to be approved. Plus, this is a great way to make sure you’re getting a professional repairman with experience, instead of just finding someone on Google or in the phonebook.
The Bottom Line: Is a Home Warranty Worth the Cost?
Absolutely! Especially if you don’t have an emergency fund for home repairs. Just be sure to read your entire service contract, including the fine print, exclusions, and pre-existing conditions. And choose the plan that fits your home best, as well as one that will cover the important appliances in your home.
You should also do your research before signing on the dotted line of any home warranty policy. Take a look at what customers have to say in reviews of the best home warranties and consider what’s most important to you when it comes to what’s covered in the policy and what’s not.