Why should I get a Home Warranty?

Here's a quick link to the answers to all your questions about Home Warranties (by HSA)

And for your other questions, let me share my experience. A home buyer pushes the upper end of their pre-approved range to find the home of their dreams...

Using all their cash on the downpayment, they ask the seller to pay their closing costs and pay for a home warranty. Some months after closing, the furnace stops working in the middle of winter, an appliance stops working and some plumbing leaks. "It's the seller's fault!" - you say, but wait, let's check the disclosures... hmm... nothing about these items having malfunctioned in the past. "It's the inspector's fault!" - again, let's check his report.... hmm... it says these items worked fine during inspection, although there are notes about "nearing the end of useful life" for a few of them. What's a buyer to do?

Things fall apart, it's sad, but they do. Warding against it and preparing for it are all you can do. In the case of this buyer, they fixed the appliance themselves with a part off Craigslist and claimed the other items under the warranty, getting them repaired professionally and very quickly, savings thousands in the process. Without the warranty, their budget would have suffered big time, but with it, they keep on enjoying Minnesota sports and Minnesota weather. 

When you buy a house, even one that looks to be in good shape, consider getting a home warranty. Most real estate companies have one they recommend, usually a result of a business partnership, so read up on the one being recommended to you. The important things to note are:

• What's covered?
• When does it start?
• What's the service fee?
• What additional coverages can I upgrade to?

Some good upgrades (or add-on packages) that I would recommend considering are related to the pool and a complete HVAC package (if not in the basic coverage). While the main beneficiary of a home warranty is the buyer, the seller also benefits from knowing the buyer has someone else to call after closing if something (God forbid) goes awry with the house. Though, of course, the seller must always fully disclose property condition according to Minnesota's Seller Disclosure requirements.