Are home warranties necessary? Before I answer that, I want to make sure you aren’t confusing it with homeowners insurance. The two are often confused, but they’re not the same thing. Home insurance covers catastrophic failures and if you’re buying with a loan, you will not be able to close unless you have proof of homeowners insurance.

Home warranties are for the smaller systems in the home like microwaves, dishwashers, HVAC, etc. You pay for the policy up front, and you’re covered for a year, after which time you can renew your policy if you want. Once you have a home warranty policy, though, make sure you read the fine print and understand what it covers.

When you’re covered, you only pay a $70 call-out fee. You can get a home warranty on a rental or owner-occupied property. The only time you wouldn’t care about having a home warranty is if you have a large cash reserve. However, if you’re low on cash and want to sleep easy knowing that the worst-case scenario is $70, I suggest you get a home warranty.

If you have any questions, feel free to reach out to our team. We’re always here to help! Hope to hear from you soon.