An article I read from Warrantyweek.com recently discussed the value of an extended warranty on a home. Here is a small excerpt below:
“Home warranties, and extended warranties in general, can be an efficient way to protect against unexpected future repair costs. Properly priced and transparently managed, a service contracts can, like auto insurance, health insurance or flood insurance, allow a consumer to reduce the financial impact of an unlikely event by purchasing a guarantee against loss or harm.”
Having coverage definitely has its benefits, but one must be careful about which company to buy from and the article lists some due diligence you can do before buying. It also lists one of the worst companies you can buy from.
Overall, I like extended warranties where it makes sense, identifying the right company that will provide the service you expect is important when considering a purchase.