Home Warranty – Why they don’t make sense

There are a few reasons why you may not want to purchase a home warranty:

  1. Limited coverage: Home warranties often come with limitations and exclusions, so it’s important to carefully review the terms and conditions to understand what is covered and what is not.
  2. High costs: Home warranties can be expensive, especially if you add on additional coverage or if you end up paying for services that aren’t covered.
  3. Deductibles and service fees: Some home warranties require you to pay a deductible or service fee every time you make a claim, which can add up over time.
  4. Better alternatives: Depending on your situation, it may be more cost-effective to simply set aside money in a repair or maintenance fund, or to purchase a homeowner’s insurance policy that covers major repairs.
  5. Denied repairs: Examples of items typically not covered by a home warranty include pre-existing conditions, cosmetic defects, and certain appliances or systems like swimming pools, well pumps, or septic systems.

Ultimately, whether or not to purchase a home warranty is a personal decision that depends on your individual circumstances and priorities. It’s important to carefully consider the costs and benefits before making a decision.