Age of a Home and a Home Warranty-what's the Connection?

Many people think that home warranties arewell, that kind of thing (houses falling apart at the
reserved for new homes - which home buildersseams after you move in) happen every single day.
provide them for the new homes built in caseYou really have no idea what you are purchasing with
something goes wrong. However, home warrantiesan older home. Even having an inspection done on the
have been around for many years and furthermore,home is no guarantee - an inspection can't necessarily
they are often used for older homes.tell you that the water heater will give up the ghost
Home warranties are not a new concept, althoughcompletely in three months' time or that the fridge
many people are new to the idea of purchasing awill need to be replaced in six months.
home warranty on an older home. It's true - many ofThere are many reasons why you should have a
the home warranties are done on new homes thathome warranty - protection for yourself and your
are being built - there's just no guarantee with a newfamily, and of course, your finances is the main
home and everything working out for you. However,reason. You have to look at the fact that a home
older homes have even more issues with notwarranty will cover any major repairs that need to
knowing what you're going to get. What looks goodbe done and in many cases, replace your major
on the outside could quickly turn into a money pit.appliances if needed through the term of your home
What are you to do when you are buying an olderwarranty. This could mean coverage for thousands,
home and you just aren't sure what you're gettingor tens of thousands of dollars of repairs that may
yourself into? Purchase a home warranty for yourneed to be done to your home. The real question is
older home.can you afford NOT to have a home warranty on an
It is just as simple to purchase a home warranty forolder home purchase? Most likely the answer is no -
an older home that you are purchasing as it is for ait's usually in your best interest to purchase the home
new one. In fact, many sellers are offering homewarranty when you purchase the home.
warranties as a selling feature on the house they areHome warranties when purchased by the buyer are
selling. If the home you are buying doesn't have ausually renewable after the original term (usually a
home warranty, you can purchase one yourself.one year term) has passed. If the seller is offering
Home warranties on newer homes are lessthe home warranty, most often it is non-renewable
expensive than those on older homes, simplywhen the term is up. Either way, the protection
because the chance of something 'going wrong' isoffered to you by a home warranty is paramount
much less likely with a newly built home. With olderand can save you quite a bit of money should
homes, there's always the chance that the watersomething major need to be replaced.
heater or furnace will give out and need to beWhen you are shopping for a home warranty, it's
replaced, or that the appliances will need to bebest to do some research and ensure you are
repaired. Of course, there are major systems in thegetting the best home warranty for the best price.
home, such as plumbing and electrical that could alsoEach home warranty is different - they vary from
need to be repaired or replaced. The costs of laborcompany to company and state to state. Be sure to
and parts for any of the major systems in yourfind out what your home warranty will cover and
home could be quite costly. These are the chiefwhat it will not cover and any provisions on the
reasons why having a home warranty on an oldercoverage that are present in the contract. Read the
home is more expensive than on a new home, andcontract thoroughly to be sure you understand what
why it is also a good idea to have a home warrantyis and isn't covered and all the provisions allotted for
when you are purchasing an older home.in the contract. If you aren't sure on some point or
Purchasing an older home is often a gamble - you'veanother, ask the agent selling you the home
likely seen or heard of the movie "The Money Pit" -warranty policy.