FAQ: Do You Recommend Homebuyers Invest in a Home Warranty?

A: Deciding to invest in a home warranty will depend on several factors, including the home’s age, how much work you’re willing to do yourself, and whether you have reserves for unexpected repairs.

A home warranty may be a good idea if inspections show your appliances or home systems may be near the end of their lifespan, if you’re not a DIY-er, or don’t have a handyman on speed-dial. Also, if you don’t have a reserve fund set up, a home warranty could help.

You may not need a home warranty if you’re already experienced with home improvements, or if you’re buying new construction (most builders provide a warranty covering workmanship and materials).

Home warranties vary wildly in their coverage, terms and limitations, so if you do consider purchasing a warranty to protect your home investment and for peace of mind, always read the fine print.

» Insider tip: If you’re a seller, offering a home warranty can give you an edge over the competition in today’s market.