Home warranty on new construction?
So I bought a brand new house last year and my 1-year warranty is about to expire. I have the option to renew for 1, 2, or 3 more years. It covers just about everything except for my appliances which are covered under manufacturer warranties. So would it really be worth it to renew? What do you think a fair price would be for an extension?
- linkus86Lv 77 years agoFavorite Answer
For the most part, home warranties are nothing but a marketing tool, thus not worth to invest in on your own. The idea that your home is under warranty gives buyers the warm and fuzzies that if something goes wrong they are covered, but rarely do they bother to read the fine print until a claim actually needs to be made. The home warranty requires the holder to pay a deductible that typically covers 70-80% of any repair likely to come up, especially in a brand new house. So the home warranty ends up get coverage for $50 of the repair after paying $300-600 for the warranty itself. And that is assuming a claim even needs to be filed.