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7 Things To Know About Home Warranties

MoneyTips

You have just closed on your home purchase and money is going to be tight for a while. Should you buy a home warranty to help you avoid out-of-pocket expenses or will it be a waste of money?

Before you decide if it will be worth it to you, you should understand what a home warranty really is and what it can do for you.

1. What is a Home Warranty?

A home warranty, also known as a home service contract, is a home protection plan that covers the cost of repairs or replacement of your home’s critical systems and appliances when they get damaged or break down due to regular wear and tear. Many home warranty plans will typically cover:

  • Plumbing
  • Electrical
  • Major appliances, such as refrigerators, microwaves, washers, and dryers
  • HVAC, central vacuum, and garbage disposal systems

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