How a Home Warranty Can Save You a Lot


If you've purchased a home or are on the market for one, someone will mention the need for a home warranty policy.

The big questions though are what they cover and whether or actually not you need one.

Home warranties cover items in your home that are breaking or malfunctioning. The home warranty company you contract with will send someone to help you fix it, pay for any damage, or replace the item altogether.

What Is a Home Warranty?

How Much Does a Home Warranty Cost?

Home warranties can cost hundreds of dollars annually and often must be paid in full. Some companies offer payment plans to spread out the expense for a new homeowner.

A plan purchased when you first buy a new home can be beneficial because it can provide a buffer to fixing common problems that may arise, especially in that first year when you're adjusting to new appliances and a new environment.

Pros of Having a Home Warranty Plan

– What does the home warranty cover? Look into which specific problems the policy includes. – How much is the cost of premiums? – What is not covered, or what are the exceptions listed in the policy?

Things to Consider

If the warranty covers what you need, the company will hire the local contractor you need. That sounds great in theory, but you, as the customer, have no say on who the contractor is.

Cons to Home Warranty Protection

If you are unsure if it's the right choice for you, you can ask the seller of a house you are interested in buying to pay for a one-year warranty. In this scenario, you will be able to choose the home warranty company.

Home Warranties, in Summary

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