Home Warranty Information

How is a home warranty useful and why would someone sign up for one?

This might be something you’ve asked yourself. You’re buying a home and your realtor has suggested a home warranty. Why should you get one?

Well, inspections can check for a lot of things, but they cannot predict the future with certainty. You may know that the stove in your new home is 10 years old, but how long will it last? It could be another 10 years, or another 10 days!

Home warranties are like insurance policies against things going wrong in the future. For example, you purchase your “new” home (which was built 20 years ago) and you move in. Everything seems fine. Two months later, the hot water heater stops working. What do you do? Do you sue the previous home owner, claiming “he should have known it was about to break down”? No. He probably couldn’t foretell the future any more than you or your home inspector could.

What could you have done? Purchased a home warranty which would have covered major appliances in your newly purchased home. When your hot water heater stops working, you telephone the home warranty company, they send out a repairman, you pay the “co-pay” amount and he fixes it. At least that’s the plan.

Each home warranty company offers slightly different coverage. It’s like an insurance policy. You want to purchase your warranty from a reputable company with a co-pay plan that you are comfortable with. Be sure to read what is (and is not) covered before you choose to purchase your home warranty.

And enjoy your new home without worries.

--Ruth Lorenzen

Note to all buyers: All buyers are required to either decline or sign up for a Home Warranty. This ensures that the buyer has been notified of the benefits of a Home Warranty and have made their own choice about purchasing the warranty or not.

Disclosure: Your realtor might (or might not) receive a commission for signing you up with this or any other home warranty.