Home warranties can be confusing for anyone, especially for the first-time home buyer.  Should you get one or not?  Sometimes, the decision will be made for you because your seller will offer it as a part of the sale.  If so, bonus for you.  However, if you have to purchase it for yourself, you will want to do some due diligence.   Home warranties can be costly and when you are having to pay for a battery of expenses going into closing you want to make sure that your money is well spent.  

When you are searching for a home warranty, get some clarification about what is covered and what is not.  Depending on the policy, home warranties can be pretty specific and limit what is covered, so do your research.  They generally cover your heating and cooling and larger items.  You can get home warranties to include additional items like a pool.  However, they tend to be added on to your policy, which will increase the cost but not significantly.  

If you are buying a brand new home from a builder, a home warranty will not be necessary because most builders will guarantee their work for a year.  Before you close, make sure to get the specifics in writing.  Most reputable builders will stand behind their work, but you want to take the steps to protect yourself.  If you have any questions, ask your realtor and builder.  Find out what contingencies are in place in case the builder goes out of business during that time frame.  It is worth it to ask the hard questions before you close while you still have leverage.

Home warranties offer peace of mind and are worth it.  Just take the time to familiarize yourself with the details and go with a reputable company with good standing.  This will help you protect you, while you get to know and enjoy your new home.