Is a Home Warranty Worth the Cost?Posted Tuesday, July 29, 2014
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
- washers and dryers
- ranges and ovens
- 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.