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Home Owners Should You Renew Your Home Warranty?

Oct 24

filed under: Buying A Home, Real Estate, Yada Yada

In all likelihood when you purchased your home  you received a home warranty covering various items in your home, i.e. appliances, roof, air conditioner, plumbing and heating items, possibly your pool/spa etc. If you had a great Realtor® he or she got the seller to pay for the warranty. So here you are nearing the renewal date and questioning if you should renew it or not.

We all know in these economic times coming up with $350 to $600 is a lot of money for many of us. If you indeed did not have to pay for the initial coverage, I doubt that you paid much attention to the cost of your home warranty . Sure you had to pay the $50 – $55 service call if you had one and that probably felt like a pretty good deal, especially if you had something major go wrong like your hot water heater going bad. Perhaps you didn’t have any service calls at all and now you are faced with this renewal expense and there’s a good chance your saying “I don’t think so”.

Now for me, I live in a home that is 10+ years old. Age is definitely a factor to consider. How old are your appliances, the filter motor for your pool, your AC and heat pump, plumbing fixtures, hot water heater, garage door opener, your roof and some of the many other things that a home warranty can cover.

You should also factor in the additional costs of the service calls, they have a way of adding up if you have 3-4 of them in a year. These of course are costs over and above the cost of the warranty itself. Read the fine print of your policy before you renew to be sure the items that you may be concerned about are actually covered. Some of the items you want to be covered are not in the standard policy but are considered “optional coverage” and have additional fees.  I have had more than one surprise and found myself very disappointed when I found out the warranty did not cover “that specific” item.

The other thing, as a home owner, you should know that if you don’t have an existing home warranty you can always get one. These companies don’t  just cater to the new home buyer of a resale home. You can purchase a home warranty any time, but know that there will be a 30 day waiting period for it to go into effect.

For me, this year I really thought long and hard if I wanted to put out $600 for my renewal. Then I started adding up the what if’s, and again, for me, it made sense. When October 2012 shows up, I’ll be sure to let you know if I made a wise decision.

Written by Howard Harris