Are Home Warranties Worth The Money?

There are not many brand new homes on the market today that come with warranties. So those who are busy house hunting today may well be wise to consider getting a home warranty of their own to help deal with potential repair issues later. After all buying a home is a big but well worth it expense, but you do not want to end up forking out extra money each month to keep everything running in good order.

Home warranties can be purchased by any buyer acquiring a home. They normally run just a few hundred dollars and can be absolutely invaluable to new homeowners. They do not cover the structure of your home as a whole but they generally do cover all of your major appliances. The things that are most likely to give you problems and cost you the most money.

Most basic home warranties include repair and replacement coverage for:
● Heating systems
● Ceiling fans
● Built in microwaves
● Water heaters
● Plumbing stoppages
● Garbage disposals
● Plumbing systems
● Cook tops and ovens
● Electrical systems
● Exhaust fans
● Duct-work
● Dishwashers

Some home warranty companies also offer extended coverage that includes items like washer & dryers, refrigerators, well pumps, central A/C, garage door openers and pools or spas. Keep in mind that home warranty companies normally try repair these appliances first and will only replace if absolutely necessary. However most do not require an inspection of the property when you obtain your home warranty. This makes warranties ideal for those buying slightly older homes of those that do not have brand new appliances.

Being caught off guard and having to fork out for a new washer one month for several hundred dollars yourself can obviously put a dent in your check book. Then what is the AC goes next month and costs you $25,000 to replace! Obviously a home warranty can definitely save you big time and give you the confidence you need to buy a home and accurately budget your housing expenses without the need for any unpleasant surprises.

Of course there are a number of home warranty and service contract companies out there to choose from though one of the most well known is American Home Shield. Additionally for any of you who are buying and selling homes regularly as a real estate investor you may be able to benefit from becoming an affiliate of one of these companies meaning that they will pay you a commission every time someone you refer to them takes out a home warranty. Or it can just be a nice way to add more value to the homes you sell and get a nice discount on supplying the buyer with a home warranty. Still when buying your own home you will find that investing in a home warranty could be one of the best choices you make.