Home Warranty Unexpected Cons
September 09, 2020
After said closing costs for a home buyer, moving costs incurred to get you into your new previously owned home, buyer(s) may want to purchase a home warranty for the peace of mind that the older systems and used appliances will be repaired or replaced should there be a breakdown. Buyer(s) may ask the seller to provide a Home Warranty on their Purchase & Sale Agreement. This will save buyer(s) money and may make them feel more confident in the property they wish to purchase.
There are always the possible disadvantages with Home Warranty companies as with most things. Claims can be denied if any appliance or system has not had proper upkeep, or if the item/system was damaged by certain elements, i.e. a power surge. Warranties can also choose to fix instead of replacing an item or system, and to include replacing an item with a brand or model of their choice over yours. They can also dictate the dollar amounts per repair and place time limits.
Check the rating of any Home Warranty policy you may be purchasing, as well as reviewing the contract and coverage very carefully. "Read the fine print."