So there I was, sitting in my town home with beads of sweat dripping off of my nose, and I had no idea that home appliance insurance existed. I was twenty three years old and had just bought my first home and BAM, my air conditioner quit on me. Just the night before, I had a party at my house and everyone was complementing me on the purchase of my home and saying how responsible I was and how they were so jealous. But they weren’t thinking about my house being nearly twenty years old.
So what happened to my AC and how was I going to get it fixed?
Well the fact was, I didn’t have an air conditioner. I had a samsung 5 in 1 convertible ac. heat pump, but all that I knew was that i needed to get it fixed quickly. I lived in the DEEP south so having an air conditioner is not just a convenience, it’s a requirement. Trust me.
My heat pump compressor failed so that meant that the whole unit had to be replaced. And how much did it cost? It cost a total of about fifteen hundred dollars. But keep this in mind, that was over fifteen years ago! A repair or replacement of a heat pump today could cost easily over $5000. if 16 SEER means anything to you, you know what I am talking about.
So who needs a home warranty?
Well, I’ll tell you one thing, I sure needed a home warranty when my AC quit on me. The fact was, at the time, I could have bought one for about two hundred dollars. So what lesson did I learn? Every house that i have bought since that time has been purchased with some sort of home warranty or appliance repair insurance. It’s as simple as that.
Does everyone need to by this type of insurance?
Nope. Not at all. Let me explain myself. If you have purchased a brand new home, then you certainly do not need a home warranty. Here’s why. If you buy a house that is newly built then you will be covered by a contractors guarantee. We are not talking about a wink and a handshake here. A contractor’s warranty or guarantee is mandated by law in many states to protect consumers.
So what is the moral of the story?
If you purchase a brand new home, a home warranty may not be your best option. But if you are thinking about buying a home that is twenty years old, then home appliance insurance could save you a few thousand dollars and give you peace of mind.