When you move into a new apartment you may consider buying a home warranty. Many people consider the purchase of a home warranty to be a good thing, but just as many consider it to be a complete waste of money, so which is it?
First up, let’s discuss the difference between a home warranty and home insurance:
- Home insurance protects you financially should your home be damaged by, say, the elements or a fire.
- A home warranty protects certain aspects of your home such as your appliances, or HVAC system and other components that may become damaged during the warranty period.
With a home warranty you pay an annual premium to receive coverage, and then you pay a deductible when you need to pay a claim. The warranty company will attempt to make a repair when you make a claim, or will replace your item.
You may think that this will give you peace of mind, but you need to thoroughly examine every aspect of a warranty before you sign up. You may find that items that frequently break down, like washers and dryers, are not covered, for example.
Even if Your Appliance or Other Components Within Your Home Breaks Down, You May Find That Your Insurance Company Will Not Reimburse You for Repair or Replacement
The main bone of contention with home warranties is that with most warranties you have to prove ‘proper maintenance’ when you make a claim. Insurance companies have a duty to try and avoid paying for claims if they can, and will often site ‘lack of proper maintenance’ as a reason not to pay following a claim. Fighting against your insurance company when they claim you are at fault for a breakdown or damage can lead to months of frustration and costs.
In addition, even if you go an entire year, or indeed years, without making a claim, then you still have to pay your premiums. After a few years you may find that you have spent enough on premiums to cost more than the necessary repairs.
If you do decide to purchase a home warranty, then make sure you do your research. You may find that your money could be better spent elsewhere.
For more information and advice on moving to a new home, or to book the services of All Points Moving & Storage, one of the top moving companies in the area, please contact us at 866-421-9490 or use our online contact form.