Do You Need a Home Warranty?

Warranties and insurance policies can be an especially tricky thing to purchase, as there are many caveats to consider and consumers are often hesitant to take out cover as they don’t want to purchase something that they might never end up using.

Both of these points stand true for home warranties, but once you’ve finished reading this article, you should have a good idea if a home warranty is a worthwhile investment for you or not.

What Exactly is a Home Warranty?

A home warranty is simply a type of service contract which you can purchase for your home. In other words, it's essentially a contract in which you pay monthly premiums for being covered against damage (the cost of repairing it) to your property.

It's important to note that a home warranty isn’t a type of insurance policy, so, instead of purchasing it from an insurer, you buy it from a dedicated home warranty firm that works in a very similar way to a traditional insurance company.

The Benefits

The primary benefit of a home warranty is the peace of mind you get with knowing that you are protected against costly, unexpected repairs, and the potential cost savings you can make in the long run.

Even though you still have to pay premiums and may never end up using the warranty, many people still find home warranties to be a worthwhile investment as they know exactly how much they need to pay each month to be covered against potential damage and repair work.

Another important benefit is the fact that, should your home be damaged, the home warranty company will find the required repairmen and parts/components on your behalf, so you won't have to spend time chasing people up.

The Drawbacks

The main drawback of purchasing a home warranty is the fact you may end up paying a considerable amount of money in premiums only to never use the warranty.

However, as mentioned earlier in this article, this isn't necessarily a bad thing, as you've still benefitted by gaining peace of mind as a result of having the home warranty in place should you ever need it.

What Type of Home Warranty is Best For Me?

There are many different types of home warranties out there – such as homebuyer warranties, homeowner's warranties, and home warranties for rentals. Each one's name is quite self-explanatory, but you can find more info on each type in this home warranty article at BoomerBuyerGuides.com.

Furthermore, different warranties within each category will have different levels of cover and other important differences to be mindful of, so it's important to read the terms and conditions in full to make sure you understand what you’re purchasing.

A Quick Summary

• A home warranty is a type of service contract that you can purchase for your property (either for the one you own or one you're renting out.)
• It’s not an insurance policy, but it works in a similar way to taking out home insurance.
• The main benefit of a home warranty is it can save you a lot of money if your property sustains damage and is in need of costly repairs.
• On the downside, it can be a waste of money if you end up never needing to make a claim.
• However, for many people, it's still worth having one in place as it provides peace of mind and protects you against unexpected repair bills.