Is a Home Warranty Required?

Almost every new homeowner is offered a home warranty, and which, in most cases, is financial backup just in case one part of your home that fails is fixed at an affordable rate. Although it seems like a good idea to insure your home against damage, you must ask yourself: Is a home warranty worth it?

While homeowner’s insurance covers fire, property damage, hail and even certain types of water damage, a home warranty is simply an agreement with a home warranty company to provides discounts on repair or parts of your home that need replacement.

This is an excellent way to avoid expensive payments just in case something in your home breaks down, and just for a few hundred dollars a year, you can obtain peace of mind by reducing costs on your repair bills.

One thing is for sure: you won’t have to dip into your emergency fund in order to pay for repairs as a home warranty acts as a buffer. Also, you won’t have to run around trying to find a contractor who can get the job done well.

However, there is one issue with home warranties: they will not cover parts of your home that have not been properly maintained, and as most homeowners have experienced, this idea of not maintaining a part of your home properly is a ‘gray area’.

All in all, you must understand that there are pros and cons to buying a home warranty but what every homeowner should do without fail is read the fine print well in order to determine whether it will pay off in the future.