Owning your own home is amazing—it grants you independence, gives you the opportunity to build equity, and allows you to tailor your space to your exact wants and needs. But let's face it: A lot can go wrong in your home! From the A/C system that calls it quits on the hottest day of summer to a 2:00 AM overflowing toilet, the potential for disaster is never zero. And if you're selling your home, a major malfunction can add even more stress to your plate. What can you do? Well, you could consider purchasing a home warranty.

What is a Home Warranty?

A home warranty is an annual contract that covers the servicing, repair, or replacement of home systems and major appliances. It can include coverage for systems like your home's plumbing or electrical, the water heater or HVAC, or appliances like a washing machine or refrigerator. Depending on the provider, you can get a home warranty only for specific items based on your needs as a homeowner. Home warranties come with a set term limit (usually monthly or yearly), but you can typically renew your warranty once it expires.

A home warranty can help protect you from having to unexpectedly pay out of pocket for repairing or replacing a malfunctioning system or appliance. When one of your covered items goes belly up, you'll file a claim, and your provider will send a pre-screened technician to diagnose the problem. As long as your plan covers the necessary repairs, you'll have help paying to fix or replace it.

You're probably thinking, "That sounds like homeowners' insurance." And they are somewhat similar! Both can help out homeowners in times of need. And like an insurance policy, home warranties usually have a deductible that you're responsible for. However, homeowners' insurance protects from damage caused by big, unexpected catastrophes, such as a fire or burglary. Home warranties protect from smaller, everyday disasters, like a leaking water heater or dryer that's on the fritz.

Do I Need a Home Warranty?

You may want to consider a home warranty if …

• You own an older home.
• Your appliances are older.
• You want the peace of mind that comes with coverage for unanticipated costs.
• You don't currently have an emergency fund or need it for other concerns.
• You want coverage for items that need specialty repairs and parts, like a pool.
• You can't or don't want to fix broken items yourself.
• You don't want the headache of having to find your own contractors.
• You're currently selling your home. A home warranty can take the stress of sudden breakdowns off your mind, and having it transfer with the sale can be attractive to buyers.

On the other hand, a home warranty might not be worth it if …

• You own a new construction home with brand-new systems.
• Your appliances are newer and/or already covered by manufacturer's warranties.
• You aren't sure if your appliances have been well-maintained, as failures caused by improper maintenance might not be covered.
• You would rather choose your own contractors instead of relying on your provider to choose for you.
• You think that paying for a home warranty might be more costly than simply paying to repair or replace something on your own.

The Bottom Line

Owning a home comes with many potential risks and hidden costs. A home warranty can help, but that doesn't mean it's always the right solution for everyone. Remember: A home warranty should bring you peace of mind, not additional stress.

If you think a home warranty might be right for you, Better Homes and Gardens The Masiello Group is here to help! Our home warranty partner, Global Homes USA, will help you build a plan that's tailored to fit your needs, whether you're in the market for a new home or selling your current one. Global Homes USA also offers a Home Inspection-Related Services option, to help identify any issues that you might not have even known about. No matter what your situation is, our expert agents and partners will work hard to ensure that you and your home are protected.

---

The Masiello Group is a second-generation family company that has been a trailblazer in New England real estate since 1966. With now more than 35 offices throughout northern New England, we're the largest residential real estate firm north of Boston to offer a complete suite of home services, including buying, selling, mortgage, title, insurance, relocation, and more.

Our agents are eager and excited to meet your real estate needs!

You can find more information on today's market and other real estate trends by reading our blog weekly at https://www.masiello.com/news-and-updates/.