Should You Purchase A Home Warranty?
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December 24, 2016
There are many consideration you need to take into account before purchasing a home warranty.
Home warranties are service contracts just like you can buy with a new TV, computer or car.
Sometimes they simply cover repairs and some cover total replacement.
To determine if you need a home warranty, you need to consider many factors.
First you need to consider resources.
What coverage do you already have?
Do you have a new enough home that the appliances are already covered with manufacturers warranties? Is your home so new it’s still covered by a builder’s warranty?
Some structural elements may have long-term warranties attached to them.
Some credit cards even extend appliance and furniture warranties by an extra year.
You need to check into these things.
Next, read the fine print before considering the cost.
Always read the fine print to see what the warranty will cover.
Warranties typically cover the electrical system, appliances, HVAC, and interior plumbing.
You must also determine how the warranty will cover your appliances. Many times there are limitations and exclusions.
Some home warranties won’t cover appliances with pre-existing maintenance, installation, and wear/tear issues.
Also — never assume that your warranty will replace your appliance. They typically will repair it instead.
You also cannot assume the warranty covers the cost 100%. Many times it’s only a percentage.
And finally, you may opt to just start an emergency fund in lieu of purchasing a home warranty.
If you find yourself short of money after making a major home purchase, it may be more economical to start an emergency fund.
No matter what, you must have funds to cover any sort of breakdown in your home. Your emergency fund should cover 6-8 months of home expenses. To do this, start a special account and put a pre-determined percentage of your income directly into this fund and don’t spend it.
Hopefully this article helped you with this major decision or educated you on this topic for a future purchase.
Either way, Builder Supply Outlet is here to help you with all your home improvement needs.
Feel free to stop into Builder Supply Outlet or the Edge Showroom with any home improvement questions you may have or call us anytime at 1-708-343-3900.