Announcement: Mortgage solutions now available in AZ, CO, FL, MT, and SC.
Should I Consider a Warranty When Buying a New Home? - Benchmark CO
businesswoman, female, laptop-2840164.jpg

Should I Consider a Warranty When Buying a New Home?

Are you buying a new home? If so, you’ve likely pondered whether or not you should put money into a home warranty to protect your investment. Here are some of the pros and cons of buying one and how they differ from homeowner’s insurance.

The Benefits of Buying a Home Warranty
Home warranties are an excellent solution if you’re buying a brand new home which has a lot of new appliances and fixtures inside of it.  If you’re not really the “do it yourself” type and would prefer to make a service call when something inside of your home breaks down, it may be for you.
For example, imagine that you have a home warranty that covers your central air conditioning system and one day it stops working. You simply call the warranty provider to book a service call and as long as the problem falls within the scope of your warranty, the repairs are completed without any additional cost to you.

How a Home Warranty Differs from Homeowner’s Insurance
Home warranties and homeowner’s insurance are vastly different but work together to protect your investment. Insurance policies cover your home against unexpected damage – fires, crime, wind storms, water damage and more, depending on your policy. A home warranty tends to cover items inside of the home – the furnace, the plumbing, electrical wiring and appliances – and will provide you with discounts on repairs or replacement should the covered items break down or otherwise stop working.

Cost and Other Home Warranty Downsides
Of course, there are a few downsides to buying a home warranty. You’ll need to pay the up-front purchase cost of the warranty unless you’re buying a brand new home in which the warranty is included. You’ll also find that warranties generally won’t cover a lack of maintenance due to the previous homeowner, which can be a bit of an issue if something breaks down and you find out it\’s not going to be covered. Finally you may find that any necessary repairs are actually less costly than the warranty itself.
Call us!