Do you need a Home Warranty?

Do you need a Home Warranty?

Buying your first home can be a headache for many. Once you purchase your home, it doesn’t get easier. All of a sudden, you’re being asked if you want a home warranty, to remember to apply for homestead and to sign up for a A/C and heating program. Talk about a lot for someone, that just hurdled through closing on a house after a month-long headache. This is my opinion on what to consider before purchasing a home warranty.

What year is your home?

If you purchased your house new, your house could still potentially be under a warranty through your builder and probably do not need it. If you have an older home, as I do, you might consider a warranty due to things around your home that may need to be replaced in the near future.

How much do you estimate you’ll need to replace and the cost?

If you have a house that has small things to fix, I personally wouldn’t even consider it, if it’s below $70 to fix because a service call is usually around $70 for a home warranty. If you have bigger items you expect to replace, like a hot water heater or refrigerator, then you may want to consider having one for those instances due to the cost.

What happens if you don’t have a home warranty?

You may be used to apartments fixing everything that breaks but being a new homeowner, that is something you need to get used to and quick. When you purchase a house that isn’t under warranty and something breaks, you need a home warranty, or your own savings set aside for repairs. Whether you choose one or the other, it is up to you. Home Warranties may not cover depending on their conditions.

You may even decide to have a home warranty one year and the next, just have a savings. The circumstances depend on your ability to afford issues your house may have in the future. You can always decide at any point in time to get a home warranty or get rid of it. Do what’s best for your circumstances.

Post author: Kayce Barajas

The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.