Is a Home Warranty a Good Purchase for a Military Homeowner?

Home warranties can be useful for new homeowners. Usually, home warranties are included in the purchase of the house, a perk provided to the home buyer by the seller. Home warranties make life in the home a little easier for the new homeowner after the close of escrow. Because the home warranty is usually included in the deal and is purchased by the home seller for the buyer, many buyers never wonder whether they would like to purchase a home warranty for themselves.

However, home warranties are not a guarantee, and not all sellers buy this policy for buyers. Home buyers who are trying to decide if they would like to purchase a home warranty should take many factors into consideration. Military families in particular may feel uncertainty about their home warranty because they move frequently. Knowing how home warranties work, what they do, and other factors can help military home buyers decide if they would like to purchase a home warranty when they buy their house.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

What Is a Home Warranty?

A home warranty is a policy similar to an insurance policy that repairs certain systems in the house when they break. Home warranty companies will often address maintenance problems with:

• Plumbing leaks
• Electrical problems
• Broken appliances
• Broken pool parts
• Broken heater or air conditioner

Home warranties do not cover problems relating to structural issues with the house. For example, the home warranty cannot be used to repair the roof of the home. If a pipe leaks, the home warranty company will repair the pipe but will not fix any structural damage that occurs because of the pipe leak.

How Do Home Warranties Work?

Home warranties typically cost several-hundred dollars. The buyer who is purchasing a home warranty must purchase a policy that lasts for one year. When a homeowner wants to make a claim, they must call the home warranty company and pay a fee, similar to a deductible or a co-pay. The home warranty company sends a contracted repair person to the house to fix the problem.

Factors to Consider

For military homeowners, there may be many pros and cons of home warranties. For example, some home warranty companies may offer a military discount, making the purchase price even less for a family with a service member. Home buyers who would like to fit their home warranty into their home purchase may be able to do so more easily with the application of the military discount.

Home warranties can make life easier for the spouse who is left at home while the service member is away on active duty. Home warranties make home repair fairly easy, because the home warranty company takes responsibility for calling the repair company. If the spouse at home is a parent who must take care of children and the property, this small benefit can make life much easier for the spouse at the house.

Finally, if the family moves before the home warranty ends, then the policy will likely not transfer to another property. The military family may want to consider whether they are likely to stay in their home for a year or more before purchasing a home warranty policy.

Buying a Home? Work with a Real Estate Professional

If you're a home buyer who is purchasing a home, work with a real estate professional who can negotiate the home warranty into the purchase of the house.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.