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There are Pros and Cons to Purchasing Home Warranties

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By : marco benavides    99 or more times read
If your home is relatively new, then most of your systems such as the electrical wiring and plumbing as well as the structural integrity of the home are still covered by the builder's warranty. In fact, the structural integrity will be covered for up to ten years in most cases, while the systems, including the mechanical system, will generally be covered for two years. Check your builder's warranty to make sure that everything is still covered. Where the home appliances are concerned, you have to rely on the manufacturer's warranty, which is generally for one year, unless you purchased an extended warranty.

However, as the home ages, the systems and appliances will begin to age and show wear and tear. What will you do if something breaks down and it is outside the warranty period? If it is really going to be costly to make repairs or to replace things, then you should consider a home warranty.

The cost of a home warranty can range from $300 to $650, or perhaps even more if you want your hot tub, swimming pool and home gym equipment covered. The warranty is a one-year contract, which can be renewed if you wish to do so. You will usually have to pay a flat fee and a deductible for any service calls that the warranty company makes to your home.

If you have to use the warranty just one time for a major repair to the plumbing, the warranty will pay for itself and then some. If the repair would have cost thousands of dollars, imagine the money you will be saving with a home warranty, even if you have to pay the deductible for the service call.

A home warranty also gives you peace of mind if you are in an older home and it is starting to show its age. You will know that all you have to do is make a call and there will be someone coming to repair any damage covered by the warranty. Some people will pay the warranty just to have that bit of assurance.

On the other hand, if you are not likely to use the warranty, then you will be spending several hundred dollars a year for no reason. If you are in a brand new house, most everything is covered by the builder's or manufacturers' warranty. If you perform regular maintenance on the home, then you are not likely to have major repairs to worry about in the near future.

If you should decide to get a home warranty, make sure you understand what is covered and what isn't. You should also make sure you know exactly what you will be charged in the deductible. Once you are well informed, you can make the decision that is right for you.

It all comes down to your personal decision and whether you feel you need the home warranty. If it is something that is going to give you peace of mind, then by all means find a good company. If it is something that is going to strain an already tight budget, then perhaps it is something you can do without for the near future, especially if you are going to be taking care of the maintenance and any minor repairs that the home might need.
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