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Should You Consider a Warranty when Buying a New Home?

 

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Are you buying a new home? If so, you’ve likely pondered whether you should invest in a warranty to protect your investment. In today’s blog post we’ll briefly explore home warranties including some of the pros and cons of buying one and how they differ from homeowner’s insurance.

The Benefits of Buying a Home Warranty
Home warranties are an excellent solution if you’re buying a brand-new home which has a lot of new appliances and fixtures inside of it, or if you’re not really the “do it yourself” type and would prefer to make a service call if something inside of your home breaks down. For example, imagine that you have a home warranty that covers your central air conditioning system and one day it stops working. You simply call the warranty provider to book a service call and as long as the problem falls within the scope of your warranty the repairs are completed without any additional cost to you.

How a Home Warranty Differs from Homeowner’s Insurance
Home warranties and homeowner’s insurance are vastly different but work together to protect your investment. Insurance policies cover your home against unexpected damage – fires, crime, wind storms, water damage and more, depending on your policy. A home warranty tends to cover items inside of the home – the furnace, the plumbing, electrical wiring and appliances – and will providehome-warranty2 you with discounts on repairs or replacement should the covered items break down or otherwise stop working.

Cost and Other Home Warranty Downsides
Of course, there are a few downsides to buying a home warranty. You’ll need to pay the up-front purchase cost of the warranty unless you’re buying a brand-new home in which the warranty is included. You’ll also find that warranties generally won’t cover a lack of maintenance due to the previous homeowner, which can be a bit of an issue if something breaks down and you find out it’s not going to be covered. Finally, you may find that any necessary repairs are less costly than the warranty itself.

As you can see, home warranties aren’t the perfect solution for every scenario but if you’re buying a new home they are an option worth considering.

moo thorpe headshotFor more helpful tips please contact me at 505.780.0310, or email me at moo@moothorpe.com and I will be happy to assist you.

Whether you are selling your home, or buying a home, I can help you with your endeavor

 

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