Is a home warranty worth buying?
Many homeowners are uncertain as to whether they should purchase a home warranty. While every homebuyer that isn't paying cash upfront for his or her home must have property insurance, home warranties are not required, meaning that many buyers choose to forego the extra coverage. Doing so is a gamble, however, and with so much money on the line, it pays to be safe.
Lorraine Labonne-Storch told HSH.com that she chose not to get a home warranty when she bought her house in 2005. After getting a home inspection, she was told that her boiler was not long for this world, but she didn't want to pay the $500 that it would cost to cover her appliances. Less than a week after the deal closed on the home, her boiler burst into flames and had to be completely replaced. Because she chose to forego the home warranty, she had to pay the entire replacement bill out of pocket – it came to $12,000.
A home warranty can be a relatively cheap way to insulate homeowners against the cost of repairs and replacements to their home systems and appliances.
Labonne-Storch is now a real estate agent, and she advises many of her clients to purchase a policy. "When a buyer is buying a home, you have to keep in mind that these are used items," she told HSH.com. "You never know, because the last thing you want to do is spend big money on big-ticket items."
If you are purchasing a new home, consider a TotalProtect® Home Warranty. A home warranty will not only limit your liability, it may increase your confidence as a homeowner with the knowledge that your possessions are in good hands.A
The information in this article is intended to provide guidance on the proper maintenance and care of systems and appliances in the home. Not all of the topics mentioned are covered by our home warranty or maintenance plans. Please review your home warranty contract carefully to understand your coverage.