November 11, 2014

Pros and Cons of Purchasing Home Warranties

Pros and Cons of Purchasing Home Warranties

Are you in the process of buying a home? Has someone told you about buying a home warranty? If your answer to both questions is yes, you’re probably wondering whether this is necessary or not. To help you out with your dilemma, we have prepared below the benefits and drawbacks of buying a home warranty to help you decide if it’s worth it.

PROS

Provides you with peace of mind. The home structure and the items within it will need care and maintenance because eventually, it will falter. But if you purchase a home warranty, you don’t need to worry much on the expenses of repairing or replacing them as they’re covered by the warranty.

Huge savings on common repairs. One good thing about home warranties is that they help you save big on home items or systems that most commonly fail like kitchen ranges, plumbing system, and electrical systems.

You can get the warranty from the seller. If you purchase a home, you can get this warranty as part of your contract with the seller, which he/she usually pays for one year and afterwards, you can decide whether to continue or not depending on your needs.

Easy fix for any difficult repairs. You cannot always repair your home appliances and systems all by yourself. Sometimes, you’ll need the help of professionals get the job done. With a home warranty plan, the company can provide you with the right professionals to handle the particular problems you’re facing.

CONS

Paying for premium charges. As part of any coverage, you’ll need to pay a certain amount of coverage, which usually costs $500 to $600 a year, an amount that can be quite expensive for some homeowners.

Service providers choose repair over replacement. Even though your appliance is faltering every now and then, your service providers will choose to repair it than replace it as this will cost them more.

Waiting for the availability of the service provider. If something gets broken, you aren’t advised to call any professional since the home warranty company will not be reimbursing the service. The companies have their own service providers; therefore, every time you face a problem with your appliances or systems, you’ll need to wait for the availability of their service providers to solve the issue. Waiting time usually takes several days after your have informed them.

Limited coverage. A warranty plan does not cover everything within your household. Therefore, before buying a home warranty plan, be sure to read the documents carefully so you know what is covered and not.

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