Home Warranties - Are they worth keeping?
If you have recently bought a home chances are
you got a 'home warranty' in the deal. These warranties (technically they are
Residential Service Contracts) can be a great lifesaver in some situations; in
others they never get used.
Good only for a year, the warranties will
expire if not renewed. The surprise is that they usually cost more to renew
than they did originally. And, while it's great to have one in the beginning,
warranties may not be worth keeping. It really depends upon the home and
homeowner.
If, after a year, it seems that your home is in
pretty good shape you may not want to renew. It also helps if you are
comfortable with making repairs or calling out service contractors when
needed. Do-it-yourselfers are a good example of those who rarely want to spend
the renewal money.
On the other hand, you may feel your A/C or
some other expensive item is on its last legs. Or, you may hate having to
worry about whom to call and how to judge the best price for repairs. Maybe
you don't know a screwdriver from a crescent wrench. If so, then a renewal may
be smart.
If you do think you might want to renew be sure
to should check into the renewal costs and options prior to the one year
expiration. One thing for sure, the warranty company won't repair your furnace
today if your warranty expired last week.
First Published 11/14/00 (1/16)
