Do You Need a Home Warranty? 8 Reasons Why the Answer Is Yes

The day you close on your new house is a day you’ll never forget.

While your hand might feel sore from signing your name so many times, you’ll have the keys to your new place — how exciting!

But, as you start thinking about this big purchase, have you thought at all about getting a home warranty?

It’s always a good idea to ask yourself, “do I need a home warranty,” when buying a house, and the answer to this question is always yes.

Buying a home warranty is something you won’t regret, and here are eight reasons you should buy one no matter what house you choose.

1. It Covers the Gaps

If you believe that your home insurance policy offers you all the protection you need, you’d better rethink this. Homeowner’s insurance covers a lot of things, but it doesn’t cover everything.

To get coverage on almost everything you own, you need both a homeowner’s policy and a home warranty.

A home warranty fills in the gaps where home insurance lacks.

2. You Include What You Want

When you purchase a home warranty, you get to choose what the plan covers and what you exclude. By getting this choice, you have more control over the costs and the coverage.

You are free to add any home system to the warranty policy, and here are some of the common things people add:

• Appliances
• HVAC system
• Plumbing system
• Electrical system
• Swimming pool or hot tub
• Hot water heater

If you can think of any other system a home has, you can probably include that too. If one of the systems is brand-new, you could decide to exclude it from the warranty, if you prefer.

The choice is yours, and you can customize your plan in any way you would like.

3. You Won’t Have to Attempt Do-It-Yourself Repairs

With a home warranty, any items you add to the policy are eligible for coverage if they break. A significant benefit of this is that having a home warranty eliminates the need for you to attempt do-it-yourself repairs.

If you usually try to save money by fixing things yourself, you probably know how much trouble this is. While there might be times you’re successful with home repairs, there’s probably a whole host of other times when things don’t go as planned.

If you want to save money and no longer have to fix the problems on your own, this is the solution for you.

4. It Helps You Get Acclimated to Home Ownership

When people go from renting to owning, they often feel overwhelmed at first by the amount of work a home needs. If you want to take your time getting acquainted with being a homeowner, having a home warranty will help you do this.

As a homeowner, you’ll be responsible for fixing the things that break in your home, but a home warranty will make it easier for you to afford the repairs you need.

As time goes by, you’ll get used to paying for repairs as they’re needed, and you might someday find that you don’t need a home warranty anymore. For now, though, you’d be better off with one.

5. Home Warranties Include Repairs and Replacement

A home warranty works by offering protection for the things you list on the policy. When any of the covered systems break, you call the company to schedule repairs, and they send out a technician.

One key benefit of the work is that it covers repairs for the systems or replacement. If repairs will get the system up and running, the technician will make the necessary fixes.

If the technician cannot fix the system, the home warranty offers replacement services for it.

6. You Receive Discounted Work

The top benefit provided by a home warranty is the price you pay for the services. Most warranties charge a set fee anytime a homeowner calls for a technician to come.

They may also charge a small fee for labor, parts, or the cost of replacement, but you will not pay full price for the services. You get the work completed at a discounted rate.

7. The Costs of a Plan Are Based on Ages of Systems

If you are wondering about the costs of a policy, there are two essential things you should know.

One, home warranties are affordable. These plans do not cost an arm and a leg.

Two, the companies that offer them base the costs on the ages of the systems and the systems you include on your policy. If you only request coverage for your appliances and not for the other systems in your home, your policy will cost less.

8. It Protects Your Budget

One benefit many people do not think about is the way a home warranty protects their budgets. Does your budget have a category for unexpected repairs? If it doesn’t, don’t worry. A lot of people don’t budget in these types of expenses.

The good news is that the only thing you’ll need to budget in is the yearly cost for the warranty. Once you pay it this year, you’ll have very few expenses for your systems throughout the remainder of the year.

The bottom line is that having a home warranty protects your budget.

Do I Need a Home Warranty?

“Do I need a home warranty?” This question is a common one that many people ask when they’re shopping for a house, but you probably know now that getting one is a smart move.

If you are starting the home-buying process, it’s a good idea to research as much as you can about it to help you make the right decisions.

You can learn more about the process by browsing our site for more helpful articles on the home-buying process.