Among the many dilemmas that first-time homeowners face is whether they should purchase a home warranty. With an average cost of $600 per year, home warranties are a considerable expense. Often, first-time buyers, who are already stretched thin after the financially draining cost of buying a home, wonder if home warranties are worth the extra expense. Below, we’ve discussed the matter in detail.
Why Is a Home Warranty Important?
Picture this. You’ve just bought your very first home. You have no experience in caring for a home or all the maintenance involved. Then, in your first year of living in your new place, you encounter some major issues. Your air conditioning stops working in the middle of summer. One of your appliances like your refrigerator, hot water heat, or stove stops working. Or maybe your pipes burst during a cold winter storm.
Often, first-time homeowners don’t have the necessary skills or experience to tend to such issues on their own. However, some, or all these repairs, could be covered by a home warranty. So even though buying a warranty might seem like an afterthought, it’s not a decision you should take lightly.
Are you buying a home with older appliances? Are there any issues that you’re aware of with the water heater, plumbing, or electricity? If you have newer appliances, what repairs does the manufacturer’s warranty cover? These are all important questions to ask when considering if a home warranty is worth it.
How to Choose a Home Warranty
If you’ve decided that you want to invest in a home warranty, your next step is to start shopping around and comparing your options. Don’t be like other first-time homeowners who just buy the first warranty someone offers them. Get quotes and compare different plans.
Here are some tips that can help you choose the plan that aligns best with your needs:
- Compare monthly payment costs: Some plans are more expensive than others. If you’re worried about the cost of a home warranty, you’ll be happy to know that there are many affordable options out there, some of which cost less than $50 per month. If you shop around, you can find a really good deal!
- Check to see what appliances/repairs are covered: You want to get crystal clear about what exactly the warranty covers and what it doesn’t. Make sure that you review the contract thoroughly and read all the fine print.
- Review coverage limits: Some plans have coverage caps or limits regarding how much they’ll pay out for a certain repair. Make sure you review coverage limits carefully.
- Research the company: In addition to reviewing the warranty plan, you’ll also want to research the company itself. Does the company have a good reputation? What do other homeowners have to say about their customer service? These are important questions to ask. Don’t make the same mistake as other first-time homeowners by overlooking the importance of buying from a reputable company.
Get More First-Time Homeowner Advice
Check back soon for more useful tips and advice or contact our office directly to speak to a member of our team!
