First time home buyers are often lost when it comes to the various details of purchasing a new home, so some important services could get missed if you don’t educate yourself. One such service is a home warranty. Buying a home is expensive, likely to be the largest purchase of your lifetime, so it is important to protect your investment. A home warranty is a bit like an insurance policy, only it is purchased at the time of sale and it provides a more limited kind of coverage. The warranty pays for repair and replacement of household problems, generally at least for the first year of ownership, with the possibility of extension. Getting your home serviced simply involves calling the company that services your warranty, they will hire a repair person and charge you a per service fee, generally less than $100.00.

Generally speaking, every home should have a warranty when it is purchased. If possible, you may be able to get the original owner to pay for the cost, as it ensures you will not be calling them if something breaks. The coverage provided is sufficient for most small issues around the house, but they do not cover accidents, code violations, improper maintenance and installation, and any damage that is outside of usual wear and tear. This means that you will still need a regular insurance policy for your home. As well, the more expensive appliances in your home won’t be covered, as well as outdoor pools and other outdoors items.

In the end, it would be a mistake to not take a home warranty. Filing warranty claims won’t affect insurance rates, and will only cost you a small fee per service. This benefit alone is enough to justify picking one up, and the fact that you can generally get a seller to pay for it means it isn’t even going to cost you anything! Home warranties provide an important service you’d be making a mistake if you passed by.