Buying a Santa Cruz Home and Wondering About a Home Warranty?

Posted by Lauren Spencer on Saturday, September 18th, 2010 at 11:01pm.

Is a home warranty necessary when you buy a Santa Cruz home? Isn’t it just an extra expense added on to an already expensive purchase? Not exactly. There are a few things to consider before deciding yes or no.

Type of Home
For example, the type of home you plan to buy makes a difference:

• Are you buying a newly constructed Santa Cruz home? Any newly built home should already be covered by the builder warranty, at least for a specific timeframe.
• Are you buying an older home? If so, a warranty might be the right thing to have.
• Are you buying a foreclosure? In this case, a home warranty is an excellent idea.

Homeowners Insurance vs. Home Warranty
Homeowners insurance is different from a home warranty.  Insurance covers the home if there’s a natural disaster, fire or theft. On the other hand, a home warranty typically covers:

• Air conditioning
• Plumbing
• Heating
• Wiring
• Dishwashers
• Stoves

As with most contracts, it’s important to read the fine print of any home warranty before buying. Some may only cover an appliance if you pay an extra premium. As well, things like air conditioners may be pro-rated, where the payable amount is based on how old the unit is.

To Buy or Not to Buy
First, consider asking the seller to include a home warranty as a buyer’s incentive. If not, then take into account whether you’re an experienced handyman. If you aren’t, buying a policy may be the best choice.

On the other hand, if you do get a home warranty, make sure you know exactly what that policy covers and provides. Like any other company, home warranty companies range from good to bad.  And note that, for the most part, they’ll try to repair rather than replace.

Only you can determine whether a home warranty policy for your new Santa Cruz home is best for you. For many, however, it gives a certain sense of safety and security from unexpected expenses.

If you’re looking for a home to buy (with or without a home warranty), I can help. Call me at 831.662.6522 or email me at or visit my website at for more information.


Newly built home

Homeowners insurance

Home warranty

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

Join Lauren On Social Media

Leave a Comment