Should You Buy a Home Warranty Plan?

Generally when you purchase a home, the seller will pay for the first year of your home warranty plan. Once that first year expires, you then have to decide if you want to renew that plan and pay your own premiums moving forward.

Below, we will help you clarify the benefits of having a home warranty plan, and assist you in deciding whether you should or should not renew your existing plan.....

How Much Does a Home Warranty Plan Cost?
Plans typically range from $250 to $400, depending on coverage.

What is Generally Covered Under a Home Warranty Plan?

• Air Conditioning
• Dishwashers
• Doorbells
• Furnace/Heating
• Water Heater
• Ductwork
• Garbage Disposal
• Inside Plumbing Stoppages
• Ceiling Fans
• Electrical Systems
• Range and Oven

What is Generally NOT Covered?

• Outdoor Items (sprinklers, fences, etc.)
• Refrigerators, Washers/Dryers, Garage Door Openers, Faucet Repairs (not all plans cover these)
  
• Spa or Pools (unless specific coverage requested)
• Permit Fees
• Haul-Away Costs
• Compliance Upgrades
  

Should You Renew Your Plan?
This depends on many factors. When figuring out whether you should renew your contract or not, you should carefully consider the following:

• The general age of your items that would be covered by the plan (older items are more likely to fail)
• Your experience maintaining a home (can you tackle the repairs on your own?)
• Your resources for helping you fix problems (consider your friends & family...assess the tools you have)
• Your financial capability to replace items should they fail (are you capable of buying a new dishwasher?)

If You Buy a Plan, What Type of Coverage Should You Get?
Because all plans differ, you will want to ask specifically what is covered. We can tell you from experience, it is critical to pay close attention to whether the home warranty company will pay for repairs to make certain types of systems or appliances compliant with new regulations. We have seen water heaters go out with a home warranty plan that covers its replacement. But the plan didn't cover the $400 in work that needed to be done in order to update the compliance of the system.

We sincerely hope that you find the information above to be valuable in deciding about your Home Warranty Plan options. Please feel free to contact us should you have any questions.