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Is a Home Warranty Worth It?

Home warranties are absolutely worth it if you have no existing coverage for your home’s appliances and systems. If you’re living in a slightly older home, getting a plan that covers all your items can save you a lot of money.

In case you’re not sure, you can always try it for the first year or two and see how often appliances break and if you’re getting your money’s worth. If you feel it’s not worth it, you can always cancel.

The Cons of Home Warranty.

-New Homes Might Not Need Them-

If all your appliances and systems are brand new and have manufacturer warranties, then buying a home warranty initially might not be a worthwhile investment. This is due to manufacturer warranties covering any potential defects and home warranties mostly covering wear and tear issues.

Newly built homes generally have warranties for the appliances and system that last up to 2 years, so investing in a home warranty before that period ends might be redundant.

-They Only Cover Normal Wear and Tear-

As already mentioned in the previous con, home warranties can save you a lot of money from items that fall victim to normal wear and tear. This means that they mostly cover issues that occur due to the item reaching its life expectancy.

The disadvantage is that your warranty claim may get denied if you don't properly maintain your items or if they expire due to issues that aren't related to wear and tear.

This means you should still be careful with not breaking any of your appliances and systems yourself.

Warranty Home Peace of Your Mind.

Another benefit of having a home warranty is the peace of mind that you have from the knowledge that all your appliances and systems are protected. If they do end up breaking due to age, you don’t need to deal with finding a repair expert, and you won’t have to spend exorbitant fees to fix or replace them.

Having this peace of mind can be beneficial for your financial planning, as you won’t need to think about saving money for home repairs. A home warranty can take away all the stress of setting money aside for repairing your refrigerator if it ends up busted.

With a warranty, you have the security that if something stops working, there’s someone who’s going to come and fix it quickly and efficiently, which can be calming when living in an older home.

Home Warranty Save Your Money in the Long Run/

The first and foremost benefit of having a home warranty is the amount of money you can save. Home repairs can add up quickly, especially if multiple of your appliances and systems start experiencing issues at the same time.

When thinking of getting a home warranty, you should consider the age of your appliances. If they’re near the end of their life expectancy, getting a warranty can be a great way to save a few hundred or a few thousand dollars. A good example is if your dryer stops working. Paying a contractor to fix the machine can cost you around $1,000, while if you have a home warranty, that repair will cost you no more than $200 if it is covered.

Like with any insurance, you’d prefer if you never have to make a claim, but it’s definitely better to be safe than sorry.