Should You Get a Home Warranty on a New Build?

You are sure to get homeowners insurance to protect yourself in the event of a major problem, but homeowners insurance does not necessarily cover all of the things you may think it does. What about the gaps in homeowners insurance? If you have just put a lot of money into building a home, the last thing you want is to have something break and have a major out of pocket expense. Many people purchase a home warranty when they buy an existing home, but what about a new build? Is it worth it? And, what is really covered with a home warranty?

Realtor.com discusses why everyone should have a home warranty, “A home warranty is a service contract that covers repairs and the replacement of appliances and other systems in your home. A home warranty differs from a general homeowner’s insurance policy in that it covers repairs and replacement of failed appliances or systems. Homeowner’s insurance covers your home and its contents from hazards such as loss, theft, and destruction.

Home warranty plans can differ quite significantly, but most cover things such as major appliances, heating and cooling systems, and plumbing and electrical systems. The more you are prepared to pay for a plan, the more likely it is that additional items are covered.” Depending on who built your home and your contract, some things may be covered, but some things may not be like your refrigerator. And you may think, “But, my refrigerator is brand new, it should be fine.” While this may be true, sometimes, things happen and appliances or other things break.

MSN Real Estate points out why a home warranty is a good idea, even for new construction or new appliances, “Knowing the average life span of an appliance can help determine if buying a home warranty is a good deal. Even with new appliances or home systems, the original equipment manufacturer warranties can be less than a year. Today’s appliances and systems have a lot of technology packed into them, meaning a lot more things can break.” A home warranty will provide peace of mind that your newly built home will be protected in the event of any problem. And with that stress gone, you can focus on what is most important, enjoying your brand new home!