When buying a home, one of the many decisions you will have to make is whether or not to purchase a home warranty. Home warranties offer protection for your new investment and can cover major appliances and systems in your home. However, they do have some limitations which you should be aware of before purchasing one. In this blog post, we will discuss the pros and cons of home warranties so that you can make an informed decision about whether or not to buy one.
Home warranties have many advantages. They can cover major appliances and systems in your home, such as your HVAC system, plumbing, and electrical items. If something goes wrong with one of these covered items, the home warranty company will send a contractor to diagnose the problem, then likely repair or replace it.
However, home warranties also have some limitations. Most home warranty companies have coverage limits, so they will only cover items that are proven to be in working condition at the time of closing. Additionally, home warranties usually have trade or service fees, which is like a deductible. This means that you will have to pay a certain amount out-of-pocket before the home warranty company will cover the repair or replacement. Additionally, home warranty companies often have certain vendors that they work with, so you may not be able to choose your own contractor.
Despite these limitations, home warranties can still be a good investment. Not only can they save money on expensive repairs or replacements, they can give you peace of mind knowing that your home is covered. If you are considering purchasing a home warranty, be sure to do your research and choose a reputable company. Attached is a helpful guide from the Arizona Department of Insurance and Financial Institutions which can explain more about what to consider when looking for a home warranty.
What are your thoughts on home warranties? Have you ever had to use one? Share your experiences in the comments below!