When we bought our first home eight years ago, our realtor told us what a boon it was that the sellers were included a one-year home warranty. She told us not to let it lapse because the house would likely need several upcoming replacements, such as a new air conditioner and roof. As luck would have it, our hot water heater died within one week of closing on the house. We promptly used our warranty, but we quickly discovered having a home warranty wasn’t necessarily a good thing.
3 Reasons Why We Didn’t Get a Home Warranty on Our Next House
When our water heater died, we discovered several restrictions on home warranties. Because of that bad experience, we let our home warranty lapse after a year. When we bought our next house a few months ago, we didn’t consider purchasing a home warranty for the following reasons:
You Have No Say
The home warranty company is strict about what they will and won’t cover and what companies can complete the work. You have no say in the repairs or replacement.
Can’t Choose the Company to Do the Work
When our water heater died, only one company was approved to come to inspect our water heater and do the work. Unfortunately, this company had bad reviews, but we had to go with them for the warranty to cover the repairs.
Can’t Choose the Product You Want
When you have a home warranty, you face two issues when using the policy.
Warranty Company Decides if You Need a Repair or Replacement
If something breaks down, the warranty company decides if you need a repair or a replacement. You may prefer a replacement rather than letting the item nickel and dime you until it dies once and for all, but that’s not your decision if you want to use the warranty.
Warranty Company Determines the Replacement
Likewise, the warranty company determines the replacement. For example, when our water heater died, we wanted to get a more energy-efficient model, but we couldn’t. The warranty company stipulated that we could only replace our hot water heater with a similar model.
You’ll Still Need to Pay Out of Pocket
We thought with a home warranty we wouldn’t have to pay much out of pocket, but we were wrong. Even with our warranty, we had to pay about 55 percent of the replacement cost, and that was for a water heater model we didn’t want installed by a company we never would have hired on our own.
Final Thoughts
A home warranty seems like a good investment. However, remember, if something seems too good to be true, it probably is. Based on our experience, we have 3 reasons why we didn’t get a home warranty in our new home, and we’re happy with that decision.
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Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York where she loves the natural beauty of the area.