APR in the News Buyer / Seller Information

Home warranty: Good idea?

August 3, 2015

John Jenkins

Question: Home warranty: Good idea?
Answer: Home warranties are often an inexpensive way to give recent home buyers peace of mind.
The relatively cheap plans will protect homeowners from having to cover the cost of repairs to most major appliances.
Additionally, the warranty will handle all aspects of the repairs — meaning no headache of dealing with different vendors.
However, as with any insurance plan, there is always the possibility you will not need it, and there can be other limitations.
Home warranties will not cover issues determined to be pre-existing. Depending on your plan, they often may choose to repair appliances rather than replace them — no matter how out of date the appliance is.
It might sound simple, but one of the most important elements to getting worth from a home warranty is remembering its value and using it. If you have a problem and try to fix it yourself before calling in the issue, that can void it being fixed through the warranty.
It’s important to look at the specifics of the plan and the condition of the home you are purchasing when assessing if a home warranty plan is for you.
Read more opinions on SFGate.

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