Is a Home Warranty for You?

Home warranties are picking up in popularity; in fact, they are now being offered by more and more companies. Marketing is no longer targeted to the home seller either. The market is so hot for warranties that they are available for purchase at closing from real estate companies, whether or not they listed the purchased property. A home warranty may also be the newest housewarming gift: agents are giving one year policies to high end buyers. Those in the know are buying home warranties for themselves: notably, agents, now familiar with the product, are buying them to cover their own homes.

Why would you buy a home warranty? Well, it may be an idea worth considering regardless of the age and condition of your house. The biggest benefit is that when a covered problem crops up, you don't have to call your regular service provider but your home warranty company. Once your warranty company gets the call, they will then refer you to one of its certified contractors. Usually there is a charge for a service call, but the resulting repair will be fully covered.

Items covered by your warranty are NOT depreciated. This is one reason to consider a warranty, even if you are buying an older resale home. You may even want to buy a home warranty for your current home, whether recently bought or not because of this advantage. Let's look at an example: If a dishwasher is 20 years old and cannot be repaired it will be replaced with a new one with, as nearly as possible, the same features as the old. If the homeowner wishes to upgrade the appliance he can pay the additional cost to do so. This gives you flexibility in improving your home as well as coverage for the appliances or systems that you currently have.

Something to think about.

Michael

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