Should You Purchase an Extended Home Warranty?

Many homeowners, especially new ones, struggle with the decision to purchase an extended home warranty. Some feel that it is a necessity for homeowners to have this protection in addition to homeowners insurance, and on the other hand, some think that extended warranties are a waste of money that could be spent better elsewhere. For those who may not be aware of what a home warranty is, it is a contract that protects your house in the event repair is needed on home appliances and systems.

The reason so many homeowners consider an extended home warranty is because they don’t want to have to worry about paying to repair or replace appliances in the home. Stories about air conditioning or heating breaking down when it is needed are common and having this type of insurance guarantees that the repairs will be paid for and taken care of or the product will be replaced if needed. Typically, the homeowner can decide the length of time for which he or she wants the warranty to last. It is common today for many realty agents to pay for the first year of a home warranty and leave the decision to purchase an extension to the consumer.

Many homeowners also decide not to purchase an extended home warranty. There are several reasons for doing this. Some people feel that virtually no warranty is actually worth purchasing, as they rarely need to file a claim. It is possible to go the entire length of the warranty without needing to put it to use. In these cases, many people feel that warranties are a waste of money because it is unknown whether or not they will see its true value. In the event that a claim is needed, you may actually have to pay for certain repairs. Some companies will refuse to repair an appliance because of pre-existing damage. This can cause much hassle and frustration because while a home inspection is usually required prior to purchasing the warranty, the warranty company, who creates the terms of the insurance, conducts it.