The Lowdown on Home Warranties
By the time you’ve closed on your home, you’ve had to make approximately 1,876 decisions. One last decision to make is whether you should – or shouldn’t- get a home warranty. You may be inclined to toss up your hands and say, “enough with the decision making, already!” We’re here to make the answer easier for you: it’s yes. And here’s why!
A home warranty is, in its simplest form, a policy that covers major repairs around the house. Oftentimes, people choose to get a home warranty for at least the first year of owning their new home. This gets you through each passing season. For example, you might buy your home in April and not realize until November that, since the closing inspection, the boiler kicked the bucket. That’s where a warranty comes into play.
Spending a little to Save a lot
Home warranties help provide financial protection for homeowners when appliance unexpectedly break. After all, no one wants to get hit with unexpected expenses right after moving in!
Different than homeowner’s insurance (which generally covers things like flooding, fires, and major catastrophe), a home warranty usually covers repair and/or replacement of appliances, like:
- Electrical systems
- Plumbing systems
- Heating and cooling systems
- Washer and Dryer
- Kitchen appliances like your stove
While homeowner’s insurance is required, a home warranty is completely optional. Perhaps you’ve lucked out with a seller who offers to gift you with a warranty for a year as an incentive to buy. Or, you opt to buy one yourself. They’re surprisingly affordable and could save you lots of money in the long run.
Plans range in price and coverage but you’ll generally be able to score one for between $300 and $600. You might consider additional coverage if your home has an in-ground pool, septic, or well. If feasible, this is a small price to pay for peace of mind. Plus, if a year passes and you change your mind, just don’t renew it. It’s that simple.
As the saying goes, wouldn’t you rather have it and not need it than need it and not have it?