Should I get a Home Warranty when purchasing my House?
A Personal Story:
My wife and I purchased a home at the end of last year in Gainesville, Virginia. In the offer to purchase, we asked the seller to buy us a Home Warranty. The seller said, "Yes" and in a few weeks we closed on the house. We felt peace of mind because our previous Home Warranty from another company, on another house we owned in Fairfax, Virginia really came thru for us on more than one occasion. In fact we were so pleased we renewed that warranty four (4) times, four years in a row while there. We even transferred it to the new owners when we left.
A short time after we moved into the Gainesville address, we had a problem with the garage door. When I phoned the warranty company I heard, "well if you haven't done this in your maintenance (I said to them, we just moved in), or if this hasn't happened, or if the motor isn't actually burned" then you will have to pay the entire bill because we only cover certain components. Another time, when we had a problem with our furnace, I heard the same thing. "If this is dirty, if this hasn't been maintained, sorry we are not going to cover the furnace." In fact, in reading the fine print of our contract from this warranty company, we discovered it talked more about what the company doesn't cover than what they actually do pay for. We've decided we won't renew this contract for another year and we are only seven months into it.
I just read a great article that I would urge you to read, too. Home Warranties - Good for Nothing? - It all depends on the fine print and who's standing behind it.
Follow the above link, read the report and then as one News Channel states - You Decide. In this case - Should we purchase a Home Warranty?