Home Warranty: What is it, and do I need one?

A lot of my young, first time clients ask my advice on whether to get a home warranty policy on their new purchase. Obviously, if they are buying a just built home, they are covered for defects through the builders warranty so no policy is needed. However if they are purchasing a "used" home, that's a different story and a home warranty policy might be a good choice. Home warranties cover different parts of the home, as well as some appliances. It is important to know what is covered, so read the contract when you do decide on a certain company. While investigating home warranty companies, take the time to call the company, and ask specific questions, this will give you some insight into how that particular company deals with its clients. If they don't have much time to answer your questions, you can be sure they aren't going to have time to respond to a claim in a timely manner. It's important to know what is covered, such as pre-existing conditions, defects not found in the home inspection. What appliances and systems are covered, most companies will cover just about anything, for additional costs. Also, know your deductable, a policy with a smaller upfront purchase price may have a much higher deductable. It may be better in the long run to spend the extra money up front and pay a smaller more manageable deductable should you need to file a claim. With today's internet it is no problem to find a good company, with a solid reputation that you can depend on.