When you buy a home, its care and keeping need to become a priority. One way to ensure that its systems and appliances are taken care of is by investing in a home warranty. However, while warranties can be the key to easy home maintenance for some, they’re not right for everyone. If you’ve been thinking about getting one for your home, read this first. We’ve listed out the pros and cons to help you decide if getting a home warranty is the right choice for you.
What is a home warranty?
How a home warranty works?
The benefits of a home warranty
Additionally, it can be a shrewd money move for those who need to budget carefully or simply like to be ahead of the game with their financial planning. With a home warranty, there are fewer unanticipated costs. You’ll know what your premium costs upfront and you’ll know what your deductible is for any repairs that are covered under the warranty, making it much easier to handle the unexpected.
The drawbacks of a home warranty
However, one major pain point of most warranties is that they won’t cover items that have not been properly maintained. Since what constitutes “properly maintained” is very subjective, this clause is often the cause of disputes between the homeowner and the warranty company. Particularly if, say, the previous owner did not take care of the appliance and the new homeowner is left hanging.
Another issue, for some, is that each year money is paid upfront under the assumption that repairs will eventually need to be made. However, that may or may not be the case. Some years, everything may work fine, but you’ll have paid the premium, regardless.
Making the decision
Written by: Tara Mastroeni