Pros and Cons of Purchasing a Home Warranty

Choosing to buy a home is a big decision and one that a person should never take lightly. First, there are mortgage notes that must be paid without fail month after month. If an individual falls behind on said notes, his or her house could get taken away. That would certainly not be an ideal situation. Who wants to invest their hard-earned cash into something just to have it ripped out from under them?

And don't forget about insurance. That's another bill that comes along with homeownership. People are required to obtain homeowners insurance to protect their homes against floods, fires, and more. That's not all, though. What about home repairs? Things tend to break down at inopportune times, and the fixes aren't always cheap.

Hence, if you're thinking about buying a home soon, you might want to consider getting a home warranty for your California home to cover repairs and replacements of systems and appliances. However, before simply agreeing and making the purchase, you should probably weigh the pros and cons. That'll help you see if the contract will be a good fit for your situation or not. So, if your interest is piqued, read on to learn about some of the reasons why you should or shouldn't get a home warranty.

Pro: Home Warranties Are Relatively Inexpensive

It depends on the coverage, but typically, most warranties cost between $300 and $500 annually. That's a minimal amount compared to what you might have to spend if a home system goes down. Without a policy, getting one of those back on track could easily cost you $1,000 or more. A policy can prevent you from emptying your bank account every time a substantial problem creeps into the picture.

Con: Homeowners Must Use Particular Repair Companies

Often, home warranty companies only work with specific plumbers, electricians, and other service people. That means if policyholders want the organizations to pay for repairs or replacements, they must use those particular professionals. That's not necessarily a problem, but homeowners tend to build relationships with their own specialists over time. As such, they'd rather them do the work because they can trust them. Yet, with home warranties, customers may not be able to do that unless they wish to float the bills themselves.

Pro: Peace of Mind

One of the top pros of a home warranty is that it can provide the policyholder with peace of mind. These days, people have enough on their plates without adding sleepless nights to the equation because they're worried about what-ifs. Unfortunately, that's what happens all too often, though. Many different things can cause people to feel anxious and stressed. However, the ones of focus here today are burst water heaters, malfunctioning HVAC units, and broken-down sewer lines. When homeowners start wondering how they'll pay for those things if they happen, that can certainly cause them grief. Home warranties can put those worries to rest, as they offer peace of mind.

Con: Some Repairs Aren’t Covered

One complaint that home warranty holders have is that the policies don't always cover repairs when acts of nature occur. For instance, if a hurricane hits and your house floods, the homeowner may have to handle drywall, flooring, and other issues out of pocket. The same can be said for shingle and decking problems if a tree falls and lands on the roof. Thus, keep this aspect in mind before signing a home warranty, or you could be caught off guard when Mother Nature does her worst.

Final Thoughts

As with anything else in this world, home warranties have both pros and cons. Therefore, you should take your time to weigh them before simply up and purchasing one. Then, you'll be able to rest easy, knowing that you made the correct choice.

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