Is a Home Warranty Worth It When Buying a New House?

Buying a new house comes with tons of questions. As a new homeowner, the first thing that comes to your mind is the condition of the systems and appliances. When you buy a previously owned house, it is likely that they have experienced much wear and tear. /you may need a home warranty.

And this means that soon you will have to face repairing costs. Many try to lower these costs, but still buy the home that they wanted. A home warranty is a great solution that will provide you with peace of mind.

Is a home warranty worth it? Read on and find out more!

Consider the repair costs

If buying a preowned home worries you, then you must get a home warranty. New homeowners are afraid that the already used home systems and appliances can fail at any time. Of course, this brings repair costs for them.

After spending your money on a new home, you certainly don’t want additional costs. But, this doesn’t have to stop you from buying a home that was already owned. If the price and location are perfect for you, then the next step is getting a proper home warranty plan.

A home warranty can cost anywhere between $300 to $500. To some, this might appear as an unnecessary cost. However, be sure that individual repairs can cost a lot more than this.

If your water heater fails, you will face a cost that varies between $500 to $1,000. It is very difficult to cover this kind of cost, as not everyone has an emergency fund.

You’ll want to check the details of the plan coverage carefully. Make sure that the most expensive systems and appliances are covered when comparing the best home warranty companies.

How to maximize the value of the home warranty plan

If you want to get the most from your home warranty, you need to make the right choice first. There are different plans available, so you should know your needs before choosing the right one. You can make a list of all the crucial systems and appliances that you want to be protected

. Check their documentation to see if they already have a manufacturer’s warranty. If something is still under the manufacturer’s warranty, then you don’t need to include it in the plan since it is already covered. Also, check if something was bought with a credit card. They usually give an extended home warranty, so you don’t want to spend twice on coverage.

A home warranty plan probably isn’t worth it if it covers only less expensive appliances. You should check and compare plans from different companies to see which one offers the best value for the money. Some providers will allow you to create your own custom plan, while some will allow you to additionally cover certain systems for a fee. A home warranty is a must for your new house, as it will save you from extra costs later. 

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