As a homeowner, you may be considering the purchase of a home warranty. However, do not mistake a home warranty for homeowners’ insurance because you insurance covers theft, fire and natural disaster damager repair or replacement costs. A home warranty generally covers the mechanical, plumbing and electrical systems and the structural integrity of the home.
Newly-built homes will have a builder’s warranty covering the above mentioned systems and the structural integrity. The warranty is generally two years on the systems and it can be up to ten years on structural integrity. As far as your appliances are concerned, they are generally covered by a manufacturer’s warranty.
When the warranties begin to expire, homeowners begin to think about home warranties as a way of protecting themselves from the expense of major repairs. Home warranties generally cost $300 to $600 and that cost must be considered against what it would cost to hire an electrician, plumber or contractor to conduct repairs.
As a homeowner, you could actually save thousands of dollars if your house should need a major repair and you have a home warranty. This, of course, is one of the main advantages of having the warranty. The warranty is an annual, renewable contract on a specific home. If your heating or electrical systems fail, you have the assurance of a warranty. You simply call the warranty company and they will come out and do the repair for the agreed upon deductible in the contract.
It is important for you to find out how much you have to pay as a deductible and what is actually covered. Items such as spas, hot tubs and swimming pools are not generally covered and you have to pay an extra fee if you want them included in the warranty. Having to pay extra for items that are not covered is an obvious disadvantage.
Another disadvantage to having a home warranty would be if you are a hands on type of person and you like to perform preventive maintenance on the home. Preventive maintenance will make your home last much longer, as will taking care of your home appliances. If you perform regular maintenance and take care of the appliances, that means you are not likely to use your home warranty. While one service call can save you thousands of dollars if you have a home warranty, not using your home warranty means that you are needlessly spending hundreds of dollars.
In the end, you have to decide whether it would be a good idea for you to get a home warranty. You have to consider the age of your home, whether the original warranties are expiring or have expired and the general condition of your systems and the structure of your home.
If the home is fairly new and everything is well-maintained and sound, you may not need a home warranty. On the other hand, if the home is old and you can see that things are going to begin to break down, it may be prudent to purchase a home warranty. If nothing else, a home warranty will give you peace of mind knowing that things are covered if the need for a major repair should arise.
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