If you're a homeowner in Des Moines, or anywhere else in Iowa, the answer is a resounding yes. Of course, not all home warranties are created equal—and that's why we're here to help! 

Imagine turning on the air conditioner a week after moving into your new house only to find it inoperable. Another possibility is that your dishwasher stops working all of a sudden, or a furnace failure occurs throughout the winter.

A house warranty can lessen some of the financial stress that new homeowners experience when a major appliance or home system breaks. Yes, you will have to pay for the warranty up front, but the savings might be worth it. An explanation of what a house warranty is, how much it costs, and if it's worthwhile is given here.

A home warranty is what? What is covered by it?

A house warranty is a service agreement that covers the cost of repairing or replacing covered components, including major kitchen appliances and electrical, plumbing, heating, and cooling systems. Windows, doors, flooring, and other structural components are not covered by a warranty. Additionally, it does not include more compact or standalone equipment like garbage compactors or countertop ovens.

When an item fails as a result of regular wear and tear after it has been occupied, the warranty is intended to cover it. You are not required to purchase a home warranty if an agent recommends one, even if they or their brokerage are affiliated with the company.

How does it differ from homeowners insurance?

Home warranties and homeowners insurance policies are not the same thing, despite the fact that they both deal with damage and expense coverage.

Losses incurred if your house and possessions are destroyed by fire, theft, or other risks are covered by homeowner's insurance. In contrast to a home warranty, which is a service agreement that covers repairs or replacement of specific items, it provides financial protection against damages or impairments to the home and its contents. And unlike a home warranty, mortgage lenders frequently need homeowners insurance.

Are home warranties worth it?

According to HomeAdvisor, the price of a home warranty normally runs from $220 to $1,841 per year. If you want expanded coverage for things like washers, dryers, swimming pools, and septic systems, the price might go higher.

Expect to pay a cost for service calls in addition to the annual premium, which is paid in payments of between $20 and $75 per month. Depending on your provider and the kind of contract you choose, these calls could cost you $75 to $125.

On the other side, if you don't have a home warranty, you might have to pay hundreds or even thousands of dollars to fix or replace expensive systems or appliances.

A house warranty can more than pay for itself if you don't have money set aside for these costs.

With one exception, though: If the house is older and the systems are out-of-date, it might not be possible to fix a problem since the necessary parts might not be accessible. A home warranty is unlikely to provide you with the security you need in this situation. If anything can't be mended, ask the supplier what your payment responsibility would be.

Of course, if there are never any issues, you would not have had to spend the money. In the end, you must choose whether financial costs outweigh mental comfort.

Is a home warranty necessary?

If you're buying a previously owned house, you might want to think about getting a home warranty from a reliable provider, particularly if your home inspection shows that several of the home's appliances and systems are drawing close to the end of their useful lives. Make sure you comprehend the house warranty's terms and conditions, the duration of the coverage, and what it will and won't cover.

Always inquire about any equipment or appliances that are still covered by warranties from the manufacturer or the seller as the buyer. If they have a home warranty, ask for the policy's paperwork so you'll know when the coverage expires. You might even ask to have the warranty transferred to you. It's also a good idea to inquire about the home's major components' maintenance records.

When not to purchase a house warranty?

A house warranty for a freshly constructed home is not worthwhile because you will end up with duplicate coverage. New construction typically comes with a guarantee from the builder covering the plumbing, electrical, heating, and cooling systems as well as other materials and workmanship for one, two, or even up to ten years. In fact, several house warranties expressly exclude products that are protected by a different warranty.

Appliances typically have a manufacturer's warranty in addition to the builder's warranty, though this is not always the case. A house warranty for those items might not be necessary if you rebuild your kitchen and use a credit card to pay for the new refrigerator or stove. Additionally, some credit cards offer extended warranties in addition to the manufacturer's warranty with new purchases.

Additionally, keeping a strict maintenance routine and having your home's systems serviced annually may help you avoid issues that a warranty would cover.

Bottom line 

There isn't much of a reason not to accept an offer from a house seller to purchase a home warranty for you. Even if it does not provide the best coverage, it does offer some extra security for you and your new house, particularly if you want to use the current systems and appliances for a time. If you want to purchase a home warranty on your own (or renew one the seller purchased for you), be sure to examine the BBB rating of the company. A B rating does not necessarily equate to "above average."

Spend some time carefully reading the contract's descriptions of the optional coverage, enhanced products, and standard coverage. Recognize the restrictions. Paying a higher premium for improved coverage may not always be essential, but it still could be (especially if you're inherited one from the seller). Shop around because premiums, exclusions, and benefit caps can vary greatly.

You can choose between saving money for future unplanned needs or paying yearly premiums for peace of mind. Instead than paying premiums for a home warranty contract that might not be needed, it may be preferable to rely on an emergency fund.

If you are looking for a new home, then we hope that this post about purchasing a home warranty in Des Moines has been helpful. If you're looking for a realtor in the area, then we'd love to help you find a new home. You can contact us today to set up a time to discuss your home search and buying needs.