Is a home warranty worth the price when purchasing a home? Well, that is a real great question, and I do not think I have a good answer for it. I guess if any of the appliances go out, the answer is yes. If none of the appliances go out, well, the answer is no.
So that is the nature of the beast whenever you are talking about insurance. Any time that you get insurance, well, if you do not have a casualty loss, you have paid the premium and therefore it was not a good deal. However, you are getting the home warranty or buying the home warranty to have peace of mind so you do not have an unexpected expense.
If you want to further analyze the situation, look at how old the appliances are. And if they are relatively old, there is a higher possibility of them breaking down, well then you can go ahead and buy a warranty so you are not surprised later on. I suggest that you really understand the warranty so you know how much it is going to pay, whether you have to pay a service call or any of the deductibles, and whether there is a maximum they have to pay, let’s say, for an air conditioning system.
Also look at the value of what you are trying to insure against. As far as an air conditioning system, you are looking at thousands of dollars. If you are looking at a refrigerator, well, that could be depending on the refrigerator – could also be in the thousands. And then look at how long the warranty runs for. Because if you are paying $500.00 to insure a $1,000.00 refrigerator or a couple of thousand dollars worth of appliances, well that is a pretty steep premium to be paying for that.
So hopefully I have answered your question, and I do not think there is a cut-and-dry answer. You need to look at the circumstances, and what your tolerances are as far as whether or not you could stand the surprise or have the money to pay for it. You might also ask that the seller provide you with the home warranty whenever you purchase the home and negotiate that into the contract.
If you have any more questions about it, please give me a call at 727-847-2288.