Does A First Time Buyer Need A Home Warranty

is-home-warranty-worth-itWhen you’re buying your first home, you’ll want everything to be as perfect as it can be. A home warranty can bring you peace of mind that repairs will be easier if something does go wrong. This is especially true if you are not the handy, DIY type. There are a few things you should consider when thinking about a home warranty.

Do Some Research

The first thing that you should remember is that you will still need homeowners insurance to cover you if your property were to become damaged by fire, flood or storms. A home warranty will ensure that the warranty company will make simple repairs to your home at a discounted rate. Some companies may also cover you for repairs or replacements that you may need for your appliances such as a washing machine or fridge. Different companies will offer different services and the prices will vary so it pays to shop around to find a plan that has everything that you need for the right price.

What Does It Cost?

It will usually cost no more than a few hundred dollars to take out a home warranty and this is usually a cost that is paid up front. Some companies will also offer an option where you can pay in installments. The actual cost of the warranty will depend on the services that you include in your policy. The age and size of your home do not matter as much to the cost of the policy as you think it might. The main determination of cost will be the things that you want included in your policy.

Service calls are not usually included in the price that you will pay for your premium and so there will be an additional cost if someone does need to be called out to your home. So if for instance you notice that all of a sudden you don’t have hot water in your house, don’t simply call to make a warranty claim unless you actually checked to make sure your water heater pilot light was still lit. Now, if it’s something more serious like a major water heater leak, the service call is usually worth it. The actual cost will be determined by the severity of the problem, how many people are needed to fix it and the length of time the repairs will take. Any fee that does need to be paid will be considerably cheaper than if you did not have a warranty in place.

Pros Of A Home Warranty

  • If your home is more than five years old then you can expect that repairs will become more frequent and a home warranty has the potential to save you a lot of money.
  • You have peace of mind that any repair you do need can be made at a discounted rate.

Cons Of A Home Warranty

  • You may face a dispute about a claim that you have made if the home has not been properly maintained by a previous occupant.
  • If you do not need to make a claim then you will have been paying premiums for no reason.

Before you sign the contract for a warranty make sure that you are completely satisfied that you will be able to make a claim if you need to. In some cases you may be able to negotiate with the seller that they will pay for the warranty for the first year, especially if they are keen to make a quick sale.