Why Buying A Home Warranty Can Save You Money In The Long Run
There tends to be a lot of back and forth between new homeowners about whether or not buying a warranty is worth it. Different lenders will advise you differently, and financial gurus will provide their own take. Will it increase your home’s value in the long run?
Although, no one’s perspective is more important than you, the homeowner since it’s your money being put into this investment. Think of it this way: just as you move into your home, the HVAC system breaks down, or the plumbing is on the fritz, or you lose your heat in the dead of winter.
When you bought the house, you probably thought that you got everything brand new, and you certainly didn’t sign up for any annoying problems. However, if you managed to buy a home warranty, many of your concerns would be alleviated.
Yes, buying a warranty upfront doesn’t feel great, but it might be worth it in time. Here are a few ways in which it can help you save money.
What it Covers
There are different kinds of home warranties available on the market, and no two programs are alike. However, at its core, a home warranty is a service contract that pays for the repair or replacement costs of the items that fall under its purview.
These items can include major kitchen appliances, electrical repairs, plumbing, heating, and so on. Home warranties are not the same as insurance policies, and they don’t cover things like roofing, doors, or other issues that directly impact the infrastructure.
Cost/Benefit Analysis
Most home warranties cost anywhere between a few hundred dollars, to a little less than two grand, so you’re probably wondering whether or not it’s worth it. Depending on the size of your home and the number of appliances you have, this protection could be a lifesaver.
Without a home warranty, you could easily spend thousands of dollars repairing or replacing major household appliances. It will provide you with the peace of mind that comes with knowing that you won’t fall into debt as soon as you buy a new home, or be stuck having to replace a bunch of appliances that no longer serve you or your family.
The Fine Print
The only instance wherein buying a home warranty may not be of use to you is if you’re investing your money into a fixer-upper. If the home is really old, and all of the appliances or HVAC systems are outdated, then the warranty won’t cover these sorts of repairs.
Definitely ask the warranty provider if they are at all able to help, but in all likelihood, it might be something that the company will be hesitant to cover since home warranties are designed to protect newer homes.
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However, if you’re buying a previously owned home, it makes sense for you to buy a warranty, especially if the inspection you ordered before closing revealed some issues regarding the appliances and their life span. That means that you would need the protection afforded by a home warranty.
A home warranty will offer you much-needed protection and will save you thousands of dollars in the long run. The important thing to remember is that you need to research different policies and service contracts before paying over any money. This ensures that you invest in the warranty that best suits your new property.
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