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Are Home Warranties Worth the Cost?

Homes that come with warranties sell 11 days quicker and for an average of $2,300 more than those without, according to a recent survey by one of the country's largest warranty providers. But one consumer organization says such warranties aren't worth the cost, which is $400 to $600 a year.

Is it worth it to have home warranty?

Home warranty cost Another big factor in deciding if a home warranty is worth buying is its cost. Basic coverage can start at about $300 and go up to $600 or more. Some home warranties charge for a service call, such as $75 or so, while others allow unlimited service calls.

Is it worth buying home warranty?

Are Home Warranties Worth the Cost? In some cases, a home warranty can help you save substantially on expensive home repair services. However, if the warranty doesn't cover your claims, or you don't need any repairs during the warranty period, you may feel that you wasted money invested in a home warranty program.

How long should you keep a home warranty?

Before buying a home warranty, learn what coverage you may already have. For example, if you're buying a newly built home, know that: The home appliances and systems typically have one-year warranties. Most states require builders to warranty the home's structural elements for up to 10 years.

Which home warranty is the best?

Best for Coverage Options: American Home Shield American Home Shield has been in business for nearly 50 years. It's the largest, most-chosen home warranty provider, and it pays out more service requests than any other home warranty company. The company offers several plans.

Are appliance warranties worth it?

If you're spending $800, $1,500 or $3,000 for an appliance, then it's definitely worth getting one, Rimini says. Others, though, don't believe they're worth the cost. For example, warranties may run for as little as one year or extend up to five or more years, and cost less if purchased for a longer period of time.

How much should I pay for a home warranty?

A home warranty costs between $350 and $600 on average. According to BankRate.com, most home warranties are around $400 for basic coverage, but cover over $20,000 worth of a home's systems and appliances.

Are home warranty plans worth it?

Purchasing a home warranty, though, can help alleviate some financial burden new homeowners face when a major appliance or home system goes out. Yes, you'll pay for a warranty upfront, but the savings could be worth the added expense.

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