If you’ve recently bought a home in California, you almost certainly had the option to purchase a home warranty. As with any kind of warranty you might have for something you purchase, this is an agreement in which the Home Warranty Company pays for repairs or replacements for certain components in your home that fail due to normal wear and tear, usually things like kitchen appliances, plumbing, electrical systems, heating, and air conditioning. This is different from a home insurance policy that covers damage caused by theft, fire, or other disasters. It’s nice to have this kind of home repair plan in place, but do you really need it for your new home? The answer is yes.

As a rule, you should absolutely have a home warranty. Many home sellers offer a free one-year home warranty, and there is really no reason not to accept this. If something goes wrong with an appliance that is covered by a home warranty during that year, some or all of the repair costs may be covered. If the seller does not offer a home warranty you should purchase one yourself. A home warranty typically costs a few hundred dollars a year, and it is up to you to decide if you can afford that kind of expense. When you consider the cost to repair or replace things like your refrigerator, dishwasher, garbage disposal and HVAC components can cost you thousands of dollars the cost of a home warranty plan is a small price to pay. It could come in handy if you have used appliances that have some wear and tear. If they break down, the cost of the warranty might be much less than the total home repair coverage. That doesn’t mean that you should assume that a home warranty will cover the entire cost of an appliance that breaks down. Some warranties will not cover appliances that were installed incorrectly or appliances that haven’t been properly maintained. They might not even cover enough of the repair cost to be worth it.

Generally speaking, it is a great idea to have a home warranty to keep yourself covered. After all, the right warranty can make for an excellent home protection plan and save you money on repairs and time finding licensed contractors. You do need to do your homework to make sure you pick a home warranty plan that covers what needs to be covered in your home. As always, be sure to read all the fine print before purchasing.