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.

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

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

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

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

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

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.

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

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