Is a home warranty necessary when you buy a Portland home? Isn’t it just an extra expense added on to an already expensive purchase? Not exactly. There are a few things to consider before deciding yes or no.

Type of Home

For example, the type of home you plan to buy makes a difference:

  • Are you buying a newly constructed Portland modern home? Any newly built home should already be covered by the builder warranty, at least for a specific time frame.
  • Are you buying an older home? If so, a warranty might be the right thing to have.
  • Are you buying a foreclosure? In this case, a home warranty is an excellent idea.

Homeowners Insurance vs. Home Warranty

Homeowners insurance is different from a home warranty.  Insurance covers the home if there’s a natural disaster, fire or theft. On the other hand, a home warranty typically covers:

  • Air conditioning
  • Plumbing
  • Heating
  • Wiring
  • Dishwashers
  • Stoves

As with most contracts, it’s important to read the fine print of any home warranty before buying. Some may only cover an appliance if you pay an extra premium. As well, things like air conditioners may be pro-rated, where the payable amount is based on how old the unit is.

To Buy or Not to Buy

First, consider asking the seller to include a home warranty as a buyer’s incentive. If not, then take into account whether you’re an experienced handyman. If you aren’t, buying a policy may be the best choice.

On the other hand, if you do get a home warranty, make sure you know exactly what that policy covers and provides. Like any other company, home warranty companies range from good to bad.  And note that, for the most part, they’ll try to repair rather than replace.

Only you can determine whether a home warranty policy for your new Portland home is best for you. For many, however, it gives a certain sense of safety and security from unexpected expenses.