Home Warranty – Is it worth it?
There are a lot of important decisions to make when buying or selling a home. One question that often comes up is whether or not to purchase a home warranty. This type of coverage can be invaluable in the event that something goes wrong with your home, but it can also be costly. In this blog post, we will discuss the pros and cons of home warranties so that you can make an informed decision about whether or not this type of coverage is right for you.
Home Warranty Cost
The first thing to consider is the cost of a home warranty. These policies can range in price from a few hundred dollars to over a thousand, depending on the level of coverage you choose. If you are on a tight budget, this expense may not be feasible. However, it is important to remember that home warranties can provide peace of mind and protection in the event of an unexpected repair.
Don’t forget about the deductible
Another thing to keep in mind is that home warranties typically have deductibles. This means that you will be responsible for paying a certain amount out-of-pocket before your coverage kicks in. For example, if your deductible is $500 and you need to repair your furnace, you will be responsible for the first $500 of the repair bill. Be sure to factor deductibles into your decision-making process when considering a home warranty.
What is covered in a home warranty?
Home warranty coverage can vary greatly from policy to policy. Some home warranties will only cover major systems and appliances, while others will also cover things like plumbing and electrical problems. Be sure to read the fine print of any home warranty you are considering so that you know exactly what is covered. Here’s a calculator you can use to estimate your maintenance costs.
Cancellation policies
Another important consideration is the cancellation policy of the home warranty company you choose. Some companies will allow you to cancel your policy at any time, while others may charge a fee if you cancel within the first year or two. Be sure to ask about cancellation policies before purchasing a home warranty so that you are not stuck with coverage you don’t need or want.
Pros of a home warranty
Now let’s take a look at some of the pros of home warranties. One of the biggest advantages is that they can give you peace of mind. If something goes wrong with your home, you will have the security of knowing that it will be covered. This can be especially important if you live in an older home or one that has been remodeled, as these homes are more likely to need repairs.
Another pro is that home warranties can save you money on repairs. In many cases, the cost of repairing an item with a warranty will be lower than the cost of repairing it without one. This is because home warranty companies have pre-negotiated rates with contractors, so you can often get a discount on labor and parts.
Finally, home warranties can give you protection from expensive repairs. For example, if your home’s sewer line needs to be replaced, the cost of this repair can be several thousand dollars. If you have a home warranty, however, the cost of this repair will likely be covered. This type of coverage can give you peace of mind and save you money in the long run.
Cons of a home warranty
Now that we’ve looked at some of the pros of home warranties, let’s take a look at some of the cons. One downside is that home warranties often have deductibles that must be met before coverage kicks in. As we mentioned earlier, this can add an extra expense to your budget if you need to make a repair.
Another con is that home warranty companies often have a list of preferred contractors that they work with. This means that you may not be able to choose your own contractor when something needs to be repaired. In some cases, this can lead to subpar repairs or even additional problems down the road.
Finally, home warranties typically only cover certain types of repairs. For example, most home warranties will not cover damage caused by pests or weather. Be sure to read the fine print of your policy so that you know what is and is not covered before you purchase it.
Remember, if you do decide to purchase a home warranty, be sure to read the policy carefully so that you understand what is and is not covered. In the HomeHub directory, we’ve got over 200 home warranty vendors to choose from. Most of these companies operate on a national basis, so they’ll be able to help anyone in the country.
