Is a Home Warranty Worth the Cost?

A home warranty is an insurance policy for a buyer who purchases a home that has older appliances. It is also for home purchases where the buyer does not know the age of the appliances.

A typical home warranty plan will probably cover:

• air conditioning
• heating with duct-work
• electrical systems
• plumbing
• washers and dryers
• dishwashers
• ranges and ovens
• refrigerators
• water heaters

When is a home warranty a good deal?  It may be a good idea if:

• The appliances are near the end of their life expectancy
• You do not know the purchase date or age of the appliances

When is a home warranty not a good idea?

• If you are purchasing a new home, the builder most likely provides a warranty.  Check into that, as a separate warranty might not be needed.
• If you have a repair company you absolutely must use, their work may not be covered by the warranty.

If the home you are purchasing comes with a home warranty, research the warranty before signing it. Some warranties are transferrable; some are not.  Some warranties limit you to hiring a particular company; others will not cover everything.

Links:

Home Warranty

http://www.myspendingplan.com/articles/viewarticle.aspx?id=9

Life expectancy

http://www.mrappliance.com/expert/life-guide/

Age of the appliances

http://www.appliance411.com/service/date-code.php