Wondering Whether a Home Warranty Is Worth It?
I’ve had a home warranty plan in place ever since I purchased my first property — a charming Victorian (or “the money pit” as I affectionately call it.) And I’ve always been really happy with it. When something goes wrong and I call my home warranty company, they pick up the phone.
But, after my latest home repair happened, I was at a backyard BBQ telling my friends all about it. After listening to me rant and rave, they asked me about the “home warranty thing.” What is it? Is it worth it? Should they get a plan too? Read on for my answers:
Yes, especially if you can’t afford to finance an unexpected repair
Breakdowns and the inevitable repair costs are unpredictable. But a warranty with regular, low monthly rates? That’s something you can plan and budget for. And, since you can review the terms of your coverage ahead of time, you’ll always know what charges to expect.
Yes, if you want to be prepared for appliance breakdowns
A home warranty plan definitely makes sense when you want to plan ahead for when your trusty appliances or home systems are reaching the end of their lifespan. If things seem to be working well enough and you’re not really sure when things might take a downturn, check out this life expectancy chart.
You might be surprised to find that central air conditioning systems are only expected to last for 7-15 years, while washers and dryers might have a breakdown after only five. Maybe there’s a repair or replacement in your near future.
Yes, if you purchased an older property
NerdWallet cites the story of a couple whose historic dream home welcomed them with a burst pipe, broken dishwasher and electrical issues — none of which came up during the home inspection. In this couple’s case, purchasing a home warranty ahead of the issues saved them $2,000!
As Magnify Money points out, not every homeowner takes great care of their property. A warranty plan that covers major appliances and systems repairs can provide a sort of homeowner peace of mind.
It’s especially useful as you’re getting to know your new home and its potentially costly “quirks.”
Yes, if you need the assistance
Let’s say you just purchased a new place in a new city. Sure enough, your dishwasher breaks down and the faucet starts leaking. You aren’t very handy with repairs, but you don’t know who to call. You might not have any local friends yet, much less a trustworthy repair person on speed dial. In this case, being ready and armed with a home warranty plan can help.
Retirement Living explains that your warranty provider will send a reliable local contractor to your home. It’s a convenient, stress-free process. Whether you’re new in town or feel you shouldn’t DIY the repair yourself, the premium and service fee will be well worth it if you feel secure and well taken care of.
Maybe not, if you’re already covered
A repair plan certainly isn’t required as part of homeownership — and it might not be for everyone. Here are a few examples:
- Your new build or new appliances are still covered under a manufacturer’s warranty or credit card warranty.
- You have substantial emergency savings set aside — and immediate access to these funds.
- You only want coverage for major property damage, in which case homeowners’ insurance is sufficient.
- Your home warranty company doesn’t cover the types of services you anticipate, or the list of covered items isn’t aligned with your needs.
- You would rather purchase brand new appliances every few years rather than repairing existing ones.
Basically, if you’re already covered in some way, you might not get the same value out of a home warranty plan. Or, if you’re the type of person who needs to have new-new-new, a repair plan probably won’t be necessary.
It’s your call
Not everyone has extra cash to spare for fabulous upgrades or emergency fixes. That’s why home warranties are recommended.
If you think it makes sense for you to buy a home warranty but you’re not sure where to start, connect with us at TotalHome Warranty by HomeServe. You’ll find a plan and coverage level that fits your budget and homeowner needs.