Is a Portland Home Warranty Worth the Cost?

by | Jul 25, 2013 | Buyer Tips

Is a Portland Home Warranty Worth the Cost?

A home warranty is an insurance policy for a buyer who purchases a home that has some older features that may break down in the first year. It is also a great idea for Portland home purchases where the buyer does not know the age of the items in the home.  According to AHS 60% of homeowners that get a home warranty with their purchase use the warranty during the first year.  What that says is, things break down and a home warranty can be great peace of mind.

A typical home warranty plan will probably cover:

  • air conditioning
  • heating with ductwork
  • electrical systems
  • plumbing
  • washers and dryers
  • dishwashers
  • ranges and ovens
  • refrigerators
  • water heaters

When is a home warranty a good deal?  It may be a good idea if:

  • The appliances are near the end of their life expectancy
  • You do not know the purchase date or age of the appliances

When is a home warranty not a good idea?

  • If you are purchasing a new home, the builder most likely provides a warranty.  Check into that, as a separate warranty might not be needed.
  • If you have a repair company you absolutely must use, their work may not be covered by the warranty.

If the Portland home you are purchasing comes with a home warranty, research the warranty before signing it. Some warranties are transferable; some are not.  Some warranties limit you to hiring a particular company; others will not cover everything.

If you’d like other useful information about buying or selling a Portland home please visit the Portland Real Estate Blog.