Are Home Warranties Worth The Money?

Whether you are buying a newly built home or an existing one, you may be offered a home warranty. A home warranty generally covers costs that are not included in home owners insurance, such as maintenance and repairs for appliances and HVAC systems. Because it can be very costly to repair or replace any of the appliances covered under a home warranty, this type of insurance product can give a new homeowner peace of mind. There are some things every home buyer should know before purchasing a home warranty.

Home warranties generally do not cover pre-existing conditions. Many sellers include home warranties when they sell their property. However, if the appliances have been poorly maintained by the previous owner, repairs will not be covered by your warranty, making it essentially useless. Before purchasing a home warranty or agreeing to accept one as a concession from the seller, have the appliances and HVAC system inspected by a qualified technician. This inspection will serve as documentation that the appliances were in working condition when you purchased the property.

Home warranties can save a homeowner a lot of money if the conditions of the warranty are followed. Heating and air conditioners are very costly to repair or replace, so a home warranty is particularly useful in hot or cold climates. Be sure to follow the conditions and check the fine print. Keep all of the service records for your appliances to verify their routine maintenance. Doing so will save you a lot of frustration when your appliance needs to be serviced. More info: Home Warranties

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