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Why You Might Need Home Warranty More Than Home Insurance

Written by Posted On Sunday, 15 April 2018 14:18

As millions of homeowners purchase their own property for the first time, a myriad of questions is often swirling in their minds, particularly when it comes to important decisions like whether to purchase home insurance versus a home warranty. Whether you’re a newlywed couple looking for a place to settle into or are just hoping for a change of scenery, the chances are you’ll need to make a decision when it comes to a warranty versus insurance before you know it. So, what’s the best option for a new homeowner?

As you’ll come to see, despite the allure of home insurance, a home warranty can serve you much better, and could be vital towards your financial security in the event of a disaster. Read up on the basics behind why a home warranty is the ideal choice for you, and you’ll likely find yourself buying one before you know it.

The benefits of a home warranty

While most new homeowners are often advised to purchase home insurance for their new property, the reality is that you may end up wasting a good chunk of your cash, and could get a much bigger bang for your buck by relying on a home warranty instead. It’s not that home insurance is a scam, or not useful; indeed, millions of homeowners are saved by their insurance each year. Rather, home warranties simply offer you more, and can be especially alluring for a new homeowner who needs to maximize the return they’re getting on their investment after making such a humungous property purchase. Another quality way to get the best return on investment is using a company like Love and Care Heating and Air to add value to your house by installing a new HVAC system.

While home insurance is often mandatory in many places, a home warranty can go a step further when it comes to protecting your assets, and can guarantee you’ll get some cash back in the event of a breakdown that damages some of your vital appliances or home system components that aren’t traditionally covered by insurance. Not all the damage from your home will come from huge disasters – sometimes, simple wear and tear will end up costing you even more than a sudden tragedy in the long term.

Home warranties essentially function as service contracts, and can be vital for any couple or new homeowner who has purchased a pre-owned property. If the residents who occupied the home you just purchased before you didn’t take good care of their plumbing, or you may have reason to worry about your boiler or any other vital component, for instance, a home warranty could help cover you in the event they fail. It’s not always easy to find a good home warranty, particularly since they’re slightly less popular than home insurance policies, which means you should rely on official sources like your state’s attorney general’s office (which you can locate here) if you’re considering purchasing one.

Other ways of vetting your home warranty provider are also available, and you should examine those, too, if you’re considering a warranty to protect your home’s vital components. Consumer affairs, for instance, has a great list of popular home warranty providers that thousands of homeowners utilize and rate to determine which ones are the best.

Do I really need a warranty?

It’s easy to understand that many new homeowners are strapped for cash, and believe that whatever savings they have stowed away would be sufficient to fix whatever vital systems component problems they encounter. The reality, however, is that a home warranty acts quite a bit like insurance in that you’ll desperately want one if you don’t have one and tragedy strikes. Virtually every household, particularly those with children, will endure some wear and tear at some point – when that time comes, you’ll be glad you purchased a warranty, which could end up saving you hundreds or even thousands of dollars if one of your house’s vital components fails.

Homeowners often choose home warranty companies for big ticket items like electrical systems or their water boilers, which could cost you an arm and a leg if they break down. Other, lesser things can be covered too, however; dishwashers, for instance, are another popular target for home warranties. You may think you’re financially secure, but your insurance likely won’t cover such things if they break down on their own, rather than being destroyed from an insured tragedy.

To determine if a warranty is right for you, review this handy chart that shows you the life expectancy of your home, which, paired with knowledge gained from the previous owner, could help you determine if your systems are about to break down, and thus in need of a warranty. If you’ve bought an aged property in particular, a warranty could be a financial lifesaver for you. Never rush into a purchase, but understand that with careful review, the sooner you buy a home warranty, the sooner you’ll be safe from small, inconvenient appliance and system breakdowns that could cost you a small fortune.

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Patrick Rapa

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