You have likely heard of home warranties, but do you know what they are and if they are worth the investment? First, to clear up some common misconceptions, home warranties are not the same as homeowner’s insurance. A home warranty covers items within your home in case something happens to them shortly after you buy the property. Homeowner’s insurance is different because it typically protects your home in case something goes seriously wrong, such as theft and disasters.
What They Cover
Each home warranty plan will cover slightly different things in your home so it is important to shop around and find one that best fits you. However, they typically cover appliances and major home systems such as plumbing or heating systems. If something that fits into either of these categories as described by your policy breaks within a certain time frame after buying your home, it will be replaced or fixed. Keep in mind that minor problems such as damaged floors or leaky sinks are not typically covered in standard home warranties.
Adding More Services
Most home warranty companies have add-ons that allow you to add protection for other items at your new home. These commonly include swimming pools, wells, and possibly maintenance for major home systems. They will come at an extra cost but can be beneficial for some people.
When Are They Worth It
If you are purchasing a new build and trust that the contractors did a good job building your house, a home warranty probably won’t be as valuable than for someone who is buying an older home. Take into consideration the condition of your new home, the cost of your home warranty and what it is covering, and the cost of the appliances and home systems it is covering to assess whether or not it is a good idea for you.
We work with some great home warranty companies here at the Sue Long Realty Group and would be happy to give you some recommendations. Feel free to give us a call at 541-766-0262 if you would us to connect you with one of those companies!