Is a Home Warranty Worth it for Me?

Countless homeowners purchase warranties to cover repairs and replacements for appliances and systems that break down due to normal wear and tear. Then, they don’t have to worry about paying out of pocket if something happens, saving a bundle of money in the process.

Of course, you have to pay a premium for a home warranty, so you probably want to find out if it’s worth it for you. Let’s go over some situations when a policy is the right choice.

You Don’t Have an Emergency Fund for Repairs

Most people don’t have thousands of dollars sitting in an emergency fund to use in case they need to repair or replace appliances or systems. If you’re one of the many, a home warranty is definitely worth it for you. Then, you won’t have to scramble to come up with the money to make the repairs or buy new items. Instead, you’ll just pay a small annual or monthly premium and a service fee whenever a technician comes to your home.

This is much more affordable than paying out of your pocket for replacements and repairs, so you’ll have a much easier time managing your finances when you have a warranty.

You Have Expensive Systems and Appliances

Your house is likely full of expensive systems and appliances that will cost a lot of money if they break down. For instance, a leaky roof, a damaged pool, and a faulty HVAC system are all expensive to repair.

If you have expensive items, it makes sense to protect them with a home warranty. Otherwise, you might have to go without the system or appliance while waiting to save the money or clear enough on your credit cards to pay for service.

You Have Older Appliances and Systems

If your appliances and systems are on the older side, a home warranty can provide essential protection. You know that appliances and systems have a finite lifespan, so it’s just a matter of time before you need an expensive repair or replacement. Instead of waiting with dread for that day to come, you can get a policy to cover the pricy items. Then, you won’t have to worry about a thing if something happens. Instead, you can file a warranty claim and let the company handle it for you. 

You’re Selling Your Home

Are you considering putting your house on the market? If so, your realtor might have already discussed a home warranty with you. Realtors often recommend adding warranties to sweeten the deal and entice buyers. It’s not just about making a faster sale, though. A policy will protect you during the process.

If you’ve ever sold a home before, you know that buyers can request repairs up to the date of closing. Often, they submit these requests when the money is already in escrow, but you can’t touch it until the buyer is happy. Fortunately, that’s not an issue when you have a warranty. The company will ensure that the repairs are made as long as the items are covered. Then, you can move forward with closing once the technicians complete the repairs.

You can even choose to transfer the policy to the buyer at closing if you wish. Some warranties charge small transfer fees, but they’re normally not more than $25. Then, the buyer can enjoy the same peace of mind you received when adding the warranty during the sale.

You’re Buying a House From Someone Else

Purchasing a home warranty is also a sound decision when buying a house from someone else. You’re basically taking over someone else’s appliances and systems, and they could break down sooner than you think.

First, look at the results of the home inspection to see if the systems or appliances are reaching the end of their lifespan. If they are, getting a home warranty can help you avoid spending thousands of dollars when the inevitable happens.

Even if the appliances aren’t that old, a home warranty can benefit you. You can’t be sure exactly how the previous owners used the systems or appliances, so they might not last as long as you hope. As long as the inspection doesn’t show pre-existing conditions, you can get a policy. Keep in mind that you might need to show a copy of the inspection report before getting the warranty or repairs if you’ve just bought the home.

You Don’t Like Dealing With Repairs Yourself

Do you feel stressed every time something breaks down, knowing that you’re going to have to devote some time to taking care of it? If you are handy, that might mean trying to find the time to repair it yourself. On the other hand, if you can’t fix it yourself, you’ll likely have to call multiple companies to find one that can repair the appliance or system in a timely matter without going over your budget.

If you don’t like dealing with stress, a home warranty is a good choice. The warranty company will find a technician to handle the replacement or repair, so you won’t have to stress about it. Plus, you can keep your tools in the garage since a licensed technician will be at your house in no time. 

You Have a Coverage Gap

Home systems and appliances generally come with manufacturer’s warranties. Additionally, you have homeowner’s insurance to protect against natural disasters and more. However, these policies don’t cover normal wear and tear, creating a gap in coverage.

You can close that gap quickly and easily with a home warranty. Then, you’ll have comprehensive coverage, reducing the likelihood of paying out of pocket.

You Want Peace of Mind

Finally, you should consider buying a warranty if you want peace of mind. The convenience, financial protection, and coverage will put you at ease, so you can enjoy your house instead of stressing out. That’s a huge reason to go with a warranty.

Getting a Home Warranty

As you can see, it’s highly likely that a home warranty is right for you. Now, it’s just a matter of finding the right one. Compare quotes from various companies, paying special attention to the coverage, exclusions, and cost. Then, you can find the right warranty to give you peace of mind and so much more.



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