Should You Consider Getting a Home Warranty?

As a first-time homebuyer, navigating the world of homeownership can be both exciting and daunting. Along with the joys of owning your own space come the realities of unexpected costs and potential repairs. That's where a home warranty can come into play.

Designed to protect homeowners against unexpected and costly repairs, a home warranty offers peace of mind by serving as an agreement between you, the homeowner, and a warranty company. By covering unexpected repair costs, a home warranty not only saves you money but also spares you the time and hassle of searching for a reliable professional.

So, is purchasing a home warranty worth it? Read along to learn more about how a warranty works and explore the pros and cons.

What are home warranties?

A home warranty is a service agreement between you, the homeowner, and a warranty company. It provides coverage for the repair and replacement of major home systems and appliances, such as the HVAC system, plumbing, and electrical components, and is not to be confused with homeowner's insurance.

How do they work?

When something that is covered breaks or stops working, you call the warranty company, pay the service fee (typically between $75-200 per visit), and schedule a technician to stop by to evaluate and repair the issue if necessary (and if it is covered).

Convenience. If you don’t have a list of professionals you trust and don't have the time to find one, you dont have to!

Not handy? No problem!

Peace of mind if you are buying an older home or if you don't have much information about how well a home's components have been maintained.

PROS

Convenience. If you don’t have a list of professionals you trust and don't have the time to find one, you dont have to!

Not handy? No problem!

Peace of mind if you are buying an older home or if you don't have much information about how well a home's components have been maintained.

It could save you thousands on big-ticket items

CONS

The company typically chooses the contractor or technician for you, so if you're dissatisfied with the service, you may not have alternative options.

Most companies impose dollar limits per repair, per item, or per year, so the entire cost of a large repair may not be covered

They determine whether to fix or replace a system or an item, and you may or may not agree with the decision

While a home warranty isn't a perfect solution to the risks and hidden costs homeowners encounter, it can offer peace of mind, particularly if you're a first-time homebuyer!

If you're considering a home warranty, send me a message — I'd be happy to send you some recommendations!

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