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Should I Get a Home Warranty?

Graham Cook  — January 12, 2019

Many homeowners have wondered if they need a home warranty when buying a house. Buying a home is a big investment, and for many people, the issue of future repairs can be a cause for concern. So, what happens when after buying your dream home, you encounter repairs that cost more than you can afford? Do you go into debt to take care of your home?

Home warranty policies can help offset the cost of home repairs that might otherwise break the bank. Through such a policy, you can cover your household systems (think HVAC, for example) and important appliances like your refrigerator. We want to help you make the right choice for you, so we’ve gathered up some of the top pros and cons of home warranties.

Home Warranty Pros

If you’re on the fence about purchasing a home warranty policy, it might help to see how they’ve helped other homeowners keep the stress of maintaining a home at bay. While these are far from the only pros of warranty coverage for your home, they should at least give you a good overview of the benefits of being protected from the unexpected.

It’s a Great Value for Your Money

If you’ve found yourself asking, “Should I get a home warranty?” you’re far from alone. Many homeowners go through the same ordeal, so it should be great news for you to learn that a home warranty can help you save money without incurring major expenses.

A typical home warranty policy that might cost you $350-500 per year will offset more expensive repairs since it includes a flat rate clause. For example, if your policy’s flat rate is $170, you can cater to repairs costing hundreds of dollars more than you would have been able to manage out of pocket. This gives you an awesome return on your home warranty investment!

You’ll Get 24/7 Peace of Mind

One of the most satisfying benefits of a home warranty is having the confidence that comes with knowing you’re covered in the event of sudden and unexpected issues with your home. Fridge making a weird noise? Washing machine leaking? You don’t have to stay up at night stressing about this kind of thing anymore. Not if you’re covered with a home warranty from one of the top-rated providers.

It’s an Asset When Selling Your Home

Another benefit of securing a home warranty policy is that it will help you sell your house when you decide to put it on the market. A home warranty assures a potential buyer that home repairs were carried out on your house on time and that the chance of hidden liability is low. The documentation will banish any fears that your home may not be up to code on maintenance.

Home Warranty Cons

Getting a home warranty has its benefits, but there are also some things you need to take into consideration when in the market for a home warranty. There are a few areas that might lead you to reconsider, which is why we’ve shared the most common cons of home warranties.

It Doesn’t Cover Pre-Existing Conditions

Once you apply for a home warranty policy, you’ll be asked to submit a current home inspection report. Any damage or wear and tear that your house has encountered will be highlighted by the report and you’ll be liable for it. So, while home warranties give you peace of mind concerning future damage, they don’t take care of pre-existing problems.

You Don’t Get to Choose Your Repairman

When you have a home warranty, and you need to do some repairs, you probably won’t be the one to pick who does them. That’s because the home warranty company wants to make sure repairs are handled by a pro, so you’ll have to choose from a list of their approved providers. Of course, who can really complain about having an experienced repairman working on their home, right?

Regular Maintenance is Up to You

A home warranty will only cover repairs made on your home. When it comes to regular upkeep, you’re on your own. And making sure your home stays in good shape is super-important when it comes to home warranties. That’s because providers typically add a policy clause that absolves them from footing repair bills on items that are in disrepair.

The Home Warranty Bottom Line

A home warranty policy is a useful tool in covering home repairs. With repairs often costing several hundred dollars just to have a technician diagnose the problem, these programs often quickly pay for themselves quickly. But you need to understand the ups and downs of home warranties to make the best choice for you and your home. That’s why you should take a look at some extensive home warranty reviews to find the best provider for your needs.