When you purchase a home, your mortgage company requires homeowners insurance. But a home warranty? That’s an entirely different story.

Do home warranties really protect you?

Do home warranties really protect you?

Whereas homeowners insurance protects personal property (i.e. the contents within your home) as well as the structure of your home should an accident or disaster occur, a home warranty is optional insurance that protects major appliances within the home.

So what should you know about a home warranty before deciding whether or not to get one for your home? Read on to find out!

Home Warranties are Valid for a Limited Time

A home warranty typically lasts for just one year. And while it can be renewed, you must track when it expires on your own because a carrier won’t often notify you when it is expiring.

Coverage (and Cost) Varies Depending on Your Warranty

As is the case with standard insurance, warranties differ depending on the level of coverage you want to pay for. If you opt for basic coverage, you may have a few appliances covered like your furnace, heating and air conditioning, and a few other major appliances.

If you upgrade to a premium plan, you’ll enjoy more protection for other appliances in your home. It’s up to you to decide how much coverage you feel comfortable with (and can afford) as most plans will vary from $250 to $600 annually.

You Have to Pay a Deductible When You Make a Claim

Depending on your specific home warranty, you will have to pay a certain amount each time you make a claim. And in most cases, you can’t combine costs if two appliances break down at once; you must pay separate fees for each.

In Most Cases, You Can’t Choose Who Completes the Repairs

If you’re someone who is uncomfortable with being told who can enter your home to make the repairs, a home warranty may not be for you. In almost every case, your home warranty carrier will already have a list of contractors for all repairs, meaning you won’t be able to choose for yourself.

So, Should You Buy a Home Warranty?

Deciding whether or not to purchase a home warranty is a personal decision and one that you must make depending on the appliances in your home and whether or not you’re financially prepared to make major appliance repairs should something happen.

This makes it important to consider your options and make an informed decision when you’re purchasing your home. Many new homeowners don’t invest in a warranty if their home is less than 10 years old but will if it’s more than 10 years old. You may want to use these same guidelines or others as you make the decision for yourself.

If You’re Ready to Purchase a Home, United Real Estate Can Help

If you’re on the hunt for your dream home or have found it and need to take the next step, United Real Estate is here to support you along the way.

As a national leader, we’re able to guide new and experienced homeowners with our expertise. Contact us to find your dream home, today!