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Do I need Extended Homeowners Warranty?

As a homeowner, it’s essential to protect your investment and ensure that you have peace of mind. One way to do this is by purchasing an extended homeowners warranty. But is it really necessary? Let’s take a closer look.

First, let’s define what an extended homeowners warranty is. It’s a type of insurance that covers the cost of repairs or replacements for major home appliances and systems. These include items such as your HVAC system, plumbing, electrical systems, and appliances such as your refrigerator, oven, and dishwasher.

An extended warranty is different from your standard homeowners insurance policy, which typically covers damage from natural disasters or accidents, but not necessarily the normal wear and tear of your home’s systems and appliances.

So, do you need an extended homeowners warranty? It depends on a few factors.

First, consider the age of your home and its systems and appliances. If your home and everything in it is brand new, you may not need an extended warranty just yet. However, if your home and its systems and appliances are older, you may be more likely to experience breakdowns and repairs.

Next, consider your budget. An extended homeowners warranty can be a valuable investment, but it does come with a cost. Make sure that you have room in your budget to cover the cost of the warranty and any deductibles that may apply.

Finally, think about your level of comfort with risk. If you’re the type of person who wants to be prepared for anything and avoid unexpected expenses, an extended homeowners warranty may be a good choice for you. On the other hand, if you’re comfortable taking on a bit of risk and paying for repairs out of pocket as they arise, you may not need an extended warranty.

In summary, an extended homeowners warranty can be a valuable investment for some homeowners, particularly those with older homes and systems or those who want to avoid unexpected expenses. However, it’s not necessary for everyone. Consider your home’s age, your budget, and your comfort with risk when deciding whether to purchase an extended warranty.

Jesse Rene Garza

REALTOR® MRP, PSA, NHC, CHMS, MSLG, HFR