If you want to buy a home in the Nashville or Valdosta, GA areas or already live here, you may have wondered, is a home warranty worth it as a new or current homeowner?
While home warranties are positioned to give home buyers and current owners peace of mind, do they really provide the expected value? This blog discusses program basics to help you decide, is a home warranty worth it or not?
What Is a Home Warranty?
A home warranty is actually not quite a warranty – it’s a service contract. The agreement provides coverage if covered appliances, systems, and components require repair or replacement. Basic home warranties typically only cover major appliances, while add-ons offer coverage for the home’s plumbing and electrical systems.
The first piece of advice: they have very specific terms and conditions dictating whether it covers a problem.
If something goes wrong with equipment or systems in your home, you’re supposed to call your home warranty company. Home warranty companies contract with specific service providers, who schedule an appointment to visit and assess the issue you face. Your home warranty company decides whether to repair a component or replace the appliance. For any work done, most home warranties require a copayment paid by the homeowner.
So, Is a Home Warranty Worth It?
Is a home warranty worth it? In short – no. A major issue homeowners have with home warranty programs is a “bait and switch” feeling. Most homeowners find home warranties do not cover what they expect.
Homeowners Report Poor Coverage
Every policy has different terms, and the most basic options typically offered with home purchases rarely cover all the systems under your roof. In fact, they usually do not cover structural items, so the roof itself isn’t even covered!
Homeowners Report Dissatisfaction with Service Provider Chosen by Warranty Company
Another issue home warranty customers experience with home warranty coverage is the poor quality of work performed. As mentioned above, the homeowner does not get to choose the service company that performs the work in the home. The fact that the home warranty company already has someone lined up to help you isn’t really an advantage, for most people.
As Always, You Get What You Pay For
Home warranty providers typically select the cheapest company to perform repairs and replacements, as well as the parts or systems installed. Cheapest is rarely the best option, for service or materials. The homeowner has no control over these selections – there is no option to select an HVAC contractor or equipment brands you trust.
Systems are often patched up with less expensive repairs first, leaving the homeowner with more frustration and more expense when something else breaks down later. Repairs are almost always cheaper than replacement, so that’s what the home warranty company tries first, even when you really need replacement.
There is no control over quality, which poses the risk of a negative impact on performance, safety, and value. Plus, plan payout limits may mean replacement equipment doesn’t offer the same value as the existing brands you use!
A Better Solution to Home Warranties
While it’s up to every Georgia homeowner to decide is a home warranty worth it, there are alternatives that provide better value and peace of mind. One smart solution is to protect your home’s major appliances and systems, such as your heating and cooling equipment, with preventive maintenance from a trusted contractor. If you wish to purchase a home warranty because you have a specific worry about such systems, maintenance is often your more reliable and affordable choice.
Maintenance for HVAC, plumbing, and electrical systems is affordable and corrects conditions within the equipment or systems that lead to problems that require repair.
Service agreements with your contractor may offer discounted repairs and replacements to provide savings when you need help. Plus, you get to select your contractor and ensure someone you trust to take care of your home is there to assist you.
Ray & Son helps Nashville and Valdosta, GA homeowners care for their HVAC equipment with maintenance tune ups and service plans. Protect these vital systems when you contact us to schedule a tune up today!