What Are "Home Warranties", And Should I Consider Them?

If you're a homeowner, or you're planning to become one, there's a term you've likely come across in your research: home warranties. You might find yourself wondering, “what are home warranties?”, and should you consider getting one? Thankfully, Crescent Title’s legal experts are here to help you better understand the advantages of home warranties for your situation. 

What Are Home Warranties?

In essence, home warranties are service contracts that cover the repair or replacement costs of home systems and appliances when they break down due to normal wear and tear. They differ from homeowner's insurance, which covers damage to your home from unforeseen events like fires, theft, or natural disasters. With a home warranty, if your dishwasher malfunctions or your heating system gives out, the warranty company will send a service provider to diagnose and fix the problem. If it cannot be repaired, the warranty company will pay to replace the item, according to the terms and limits of your contract.

The Basics of Home Warranties

Home warranties typically last for one year and can be renewed. They cover various household items, but the specifics depend on the plan you choose. Basic plans often cover major systems like plumbing, electrical, heating, and cooling, as well as major appliances like refrigerators, dishwashers, and ovens.

You can usually add on coverage for additional items, such as pools or septic systems, for an extra cost. It's important to read your contract thoroughly to understand what is and isn't covered. Also, keep in mind that a home warranty won't cover items that haven't been maintained properly or that were defective before the warranty took effect.

Should I Consider a Home Warranty?

Now, you might be wondering, "should I consider getting a home warranty?" The answer depends on several factors.

For instance, if your home's appliances and systems are old and likely to break down soon, a home warranty could potentially save you money. This is especially true if you don't have an emergency fund to cover unexpected repair costs.

However, if your appliances and systems are new or still have manufacturer's warranties, or if you're comfortable with paying for potential repairs out of pocket, a home warranty might not be necessary. Remember that home warranties come with costs, including the upfront premium and service call fees, which can add up.

It's also worth considering your comfort level with home repairs. If you're not handy or don't want the hassle of finding a contractor when something breaks, a home warranty could be a valuable safety net.

Navigating Home Warranties and More with Crescent Title

At Crescent Title, we have a wealth of experience in title work and real estate law, and we're committed to helping you navigate these complex decisions. For more information or to begin your real estate journey, reach out to us today. With Crescent Title as your trusted partner, you can be confident you're making the best decisions for the legal security of your home and future.