Home Warranty Programs
REM # C456
By Ilyce R. Glink
Summary: Is getting a home warranty program a good idea? Usually, the answer is no. Ilyce Glink advises a reader to save their money and self-fund any repairs they may need.
Q: Are home warranty programs worth the money? I bought my condo a year ago this December and will need to buy an appliance warranty program soon. The building and appliances are all eight years old. I've looked into some programs on-line, including the one offered through my mortgage company.
I just can't believe that a $400 annual premium is worth it. I anticipate having to pay more than what they say the premium will save me on for repairs and/or replacements.
My question is: Is a general home warranty program really worth the cost, or should I let things break, and just buy new appliances as I go?
Ultimately, I want to buy a new fridge, stove, and washing machine (next three years or so) so as to redecorate and improve the look of the place. My washer & dryer are new and have a Sears warranty. My A/C and heating units are old and those are what I am most concerned with. We've already had a backed up pipe, but it was a general building problem and the condo organization took care of the expense.
I guess I'm also worried about my toilet exploding at three o'clock in the morning.
A: Home warranty programs are NOT generally worth the money. It's expensive and you still have to pay the service fee (anywhere from $50-100) for the service call. I'd save your money and you'll be able to self-fund any home improvements or repairs you have.
By the way, even if the toilet did explode, a home warranty wouldn't cover it.
NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher.
Seller Closing Costs
Home Moving Tips: Things to Do Before You Move
Looking At A Seller's Closing Costs
Why Some People Get Their Loan Rejected
Know How Long You Plan To Stay Before You Choose Your Loan
Link to This Article
Like what you've read? Spread the word! You can link to this article
from your website by copying the following code and adding it to
a page on your website:
Copyright ©2001-2007. ThinkGlink, Inc.
All rights reserved. Reproduction of material from any www.ThinkGlink.com pages without permission is strictly prohibited.
Site designed by Walker Sands Communications
