WHAT IS A HOME WARRANTY AND DO I NEED IT?

The home of your dreams is finally yours.  You have put months into finding it now reality sets in as you turn the key and walk in. 

Your next door neighbors come over to introduce themselves and while you are getting to know one another the subject of Home Warranty comes up.  Since you did not give much thought to it earlier you are now more than curious.  What is a Home Warranty and Do I need one?  After all you have homeowner's insurance...isn't that the same?

By definition, a home warranty is a service contract designed to pay the cost of repair or replacement of your home appliances and systems.  Typical items covered can include: dishwashers, ovens, refrigerators, washers and dryers and other appliances.  Other items: electrical, HVAC and plumbing, septic systems and wells, pool and spa equipment and roof leaks.

The home warranty provides the home owner discounted repair and replacement service.  It reassures the buyer with a measure of protection against defects that may arise after the sale closes.  It is important to note that the homeowner may have little or no say in the model or brand of a replacement component.

The home owner who purchases new construction usually get some type of warranty from the builder for the home's materials and workmanship making a home warranty impractical.

With the purchase of a home warranty protection plan it is important to "read the fine print" regarding limitations.  Be forewarned, some plans may include "improper maintenance" exclusion.  Visit the warranty company's website to read their ratings and reviews, and then visit the Better Business Bureau to compare ratings and reviews. 

As with any type of "insurance" cost is always a factor to consider.  Home warranty protection companies offer various coverage plans and price points.  Shop around and interview companies to determine which provider and what amount of coverage you will need.