Is a Home Warranty Worth it?
Whether you are new to home ownership or have owned your home for a number of years, you have probably contemplated a home warranty. A home warranty is offered by an independent company and covers many aspects of home repairs that routinely come up through the course of home ownership. The cost varies but it usually costs around $450 per year. There are pros and cons to home warranties to consider before you purchase one.
One of the biggest advantages of a home warranty is the peace of mind it can bring the home owner. It can cover some major expenses in your house, such as the air conditioner or heating unit. These big ticket items can be very costly to repair depending on the problem. If you have recently purchased a house, a home warranty is probably a good idea. Plus, you should be able to ask for a home warranty from the sellers without much problem. Many sellers actually offer the home warranty as part of selling the home, so you do not even have to negotiate it. When you just move into a house, you are new to that house and are not familiar with the “bones” of the house. For this reason, a home warranty is probably a good idea for the first year or two you own your house.
There are several disadvantages that come with home warranties. First, you are obligated to use the repair service the warranty company picks to do the work. The home warranty company has contracted with service providers in your area such as plumbers or electricians, and when you have a problem you call the home warranty company and they call the repair service and advise them to check the problem. If you have a repair service you have used in the past or would like to use, you probably will not be able since the situation is managed through your home warranty company.
A second disadvantage is that a repair you think may be covered may not necessarily be covered. Also, there is a flat service fee that you pay when the repair service comes to your house, usually around $50. Be sure and read your policy before calling them out because you may call them out only to learn it is not covered under the home warranty. Also, the warranty only requires the company to get the particular problem solved to the level of operation before the problem occurred. For example, let’s say that your air conditioner unit does not cool well and finally stops working all together. While it would be nice to get a brand new unit installed, that is not likely to happen. The repair service is only obligated to get the existing unit operational. If the unit has another problem next week, it is a whole new service call and you will pay $50 for this visit again.
In summary, home warranties have a place in home ownership. If you are new to a house, there is definite benefit. However, once you have been in a house for several years, the $450 dollars per year for the warranty and the $50 per service visit may not be worth the money year after year. In the long run it is probably more beneficial to not have a home warranty.
Whether you are new to home ownership or have owned your home for a number of years, you have probably contemplated a home warranty. A home warranty is offered by an independent company and covers many aspects of home repairs that routinely come up through the course of home ownership. The cost varies but it usually costs around $450 per year. There are pros and cons to home warranties to consider before you purchase one.
One of the biggest advantages of a home warranty is the peace of mind it can bring the home owner. It can cover some major expenses in your house, such as the air conditioner or heating unit. These big ticket items can be very costly to repair depending on the problem. If you have recently purchased a house, a home warranty is probably a good idea. Plus, you should be able to ask for a home warranty from the sellers without much problem. Many sellers actually offer the home warranty as part of selling the home, so you do not even have to negotiate it. When you just move into a house, you are new to that house and are not familiar with the “bones” of the house. For this reason, a home warranty is probably a good idea for the first year or two you own your house.
There are several disadvantages that come with home warranties. First, you are obligated to use the repair service the warranty company picks to do the work. The home warranty company has contracted with service providers in your area such as plumbers or electricians, and when you have a problem you call the home warranty company and they call the repair service and advise them to check the problem. If you have a repair service you have used in the past or would like to use, you probably will not be able since the situation is managed through your home warranty company.
A second disadvantage is that a repair you think may be covered may not necessarily be covered. Also, there is a flat service fee that you pay when the repair service comes to your house, usually around $50. Be sure and read your policy before calling them out because you may call them out only to learn it is not covered under the home warranty. Also, the warranty only requires the company to get the particular problem solved to the level of operation before the problem occurred. For example, let’s say that your air conditioner unit does not cool well and finally stops working all together. While it would be nice to get a brand new unit installed, that is not likely to happen. The repair service is only obligated to get the existing unit operational. If the unit has another problem next week, it is a whole new service call and you will pay $50 for this visit again.
In summary, home warranties have a place in home ownership. If you are new to a house, there is definite benefit. However, once you have been in a house for several years, the $450 dollars per year for the warranty and the $50 per service visit may not be worth the money year after year. In the long run it is probably more beneficial to not have a home warranty.