Should you purchase a home warranty?

As our customers move through the purchasing process and we get narrowed down to the nickel and dime costs, the question should you buy the home warranty always seems to come up.

There are the down payment monies, a full year of homeowner's insurance, this tax, that tax, and now a warranty? Seems like a lot to pay for. But, in the case of a home warranty, it could turn out to be an expense you can't afford not to pay.

A home warranty is different from homeowner's insurance. Insurance pays for an expense like a fire or major damage to the home. The warranty covers the small things. Just to name a few:

Doorbells, thermostats, and garage door openers
Light fixtures and ceiling fans (even the ones in vaulted ceilings you cannot reach!)
Plumbing- pipes and fixtures
HVAC systems
Hot water heater
Appliances
Pools and sub pumps

As we close on our home purchase, sometimes it takes every dollar we have saved. Since the home warranty is optional, it seems like somewhere we can cut costs. These warranties range between $500-$800 a year, with a fee per service call ranging from $75-$100. In this writer's opinion, it's worth every penny!

For example, your ceiling fan in a two-story family room stops working. Big issue if it is also the lighting for the room. Do you have a ladder that tall? Whom do you call? An electrician? A family member? With a home warranty, all your repair requests are the same call.

Don't like calling things in? That's ok too. Most of these company has phone apps and online requests. You take a photo of a ceiling fan. Fill in the description. "My ceiling fan/light combo in my two-story family room no longer works". Click on create a service call. Within 24 hours, a professional will call to schedule the appointment.

After 12 months with the warranty, you may find it has paid for itself. Easy to renew after a year. Most companies will take the renewal fee out of your account in small monthly installments. This writer has had a home warranty for ten years now and I highly recommend it.

Writer Patricia Eubanks, VP SouthPoint Financial Services