If you’ve just bought a new home, make sure you also purchase a good home warranty.
Financial expert Mike Sullivan of the Take Charge America credit counseling service said warranties can save you thousands of dollars in home repair costs over the years.
He said before you buy a warranty, you should make sure you know what items the company will replace.
“An insurance company is not anxious to replace your HVAC system,” Sullivan said. “They are more likely to continue to repair even obsolete appliances and systems than replace them, because that saves them money.”
Sullivan said you should check the background of any warranty company with the Better Business Bureau.
He said your real estate agent or new home builder may be able to help you choose a warranty company.
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