Powered by RealTown Blogs

Real Estate Bits and Pieces

Friday, October 31, 2008 - Should I Renew My Home Warranty?

Our daughter and son-in-law bought a house almost exactly a year ago. It was built in 1999 and came with a homeowner's warranty. Their question to me was should they renew their warranty at a cost of $600 a year? Like everyone else, they're looking at ways to cut back but they're also concerned about appliances breaking down.

 

My recommendation to them was to take the $600 that they would spend towards the renewal of the home warranty and put it in a separate savings account labeled "Appliances". Then they should also get a contract to have their central air conditioner, gas furnace and water heater inspected and maintained twice a year -- something that will generally extend the life of those appliances significantly.

 

If they put $600 in this account each year, they will likely come out ahead and will be able to budget for anything that needs replacing.

 

Take a look at the Demense.info to get an idea of the average life-span of appliances and major systems in your house. This can help you plan your appliance and major systems replacement budget.

 

(C) Susan Pruden.

4 CommentsPost A Comment!Permanent Link

Friday, October 31, 2008 - RE: Should I Renew My Home Warranty?

Posted by John

Sure, now you tell me.  I had this discussion with [my realtor, who you know] K.K. about renewing my warranty a few months ago (also having just passed our one-year anniversary in the house).

K.K. is more of a gambler and doesn't necessarily believe in them.  But as one who is not very handy, I went for the renewal.  Then again mine was about $150 less than your daughter's.  We'll see what happens at the end of year 2

Permanent Link

Monday, November 3, 2008 - RE: Should I Renew My Home Warranty?

Posted by Royane

They seem to havea a realtively new appliances as it is not a old home. Your plans makes sense to me in this economic environment. Home warranty companies find a way to deny your claim many times, so even having home warranty does not give your piece of mind like other insurance policicies. I wrote an article about it here -

http://www.homewarrantyreviews.com/do-i-need-home-warranty


Permanent Link

Tuesday, December 2, 2008 - RE: Should I Renew My Home Warranty?

Posted by Home Warranty Advisor

I think the decision of whether or not to renew your home warranty should be solely based on your home. If you feel there are problems that could persist, I definitely would go ahead and do it - it will probably end up saving you money in the long run.

Permanent Link

Tuesday, December 2, 2008 - RE: Should I Renew My Home Warranty?

Posted by Susan Pruden

Good point - in my discussion with my son-in-law, we talked extensively about the age of the property and the age of the appliances, furnace, etc. The property itself and its condition should definitely be a major part of that equation, which is why I included the link to the lifespan of appliances.  Thanks for your input. --Susan

Permanent Link

Write a Comment

Your Name:  RealTown Members: Click here to login
Your E-Mail: 
Your Website: 
Subject: 
Your Comment: 
Notifications: 
Privacy: 
Verification: 
To verify that you are a human and not a script, please enter the verification word from the image into the box on the right.
 

Informal observations about Prince George's County Real Estate and happenings around our local area. I'm Susan Pruden, in Cheverly Maryland and I welcome your comments and participation.

Links

Home
View my profile
Archives
Email Me
Blog Manager