 TITLE: Are Home Warranties Worth the Cost? CONTENT: How to Decide if You Need a Home Warranty\n-----------------------------------------\nA home warranty can be a worthwhile investment for homeowners who anticipate having to make repairs in the not-so-distant future. If you've just bought an older home, or have out-of-date home systems or appliances, comparing home warranty quotes could ultimately save you money in the long run. The average cost to install a new air conditioner, for example, is $4,631, according to data from HomeGuide. If things start breaking down within your home, having a warranty to fall back on could reduce financial stress.\nBut like any contract, it pays to read the fine print. Home warranties usually come with exclusions that may give you pause. Make sure you're clear on what appliances and systems are covered—and under what circumstances. In some cases, the company may decline to cover you if they can trace the problem back to improper maintenance. Things like pest damage, cosmetic defects and improper installation may also leave you high and dry.\nIt's worth noting that the home warranty company generally has the final word on replacement equipment. Even if your contract says they'll replace a broken appliance with something similar, there's no guarantee it'll meet your expectations. What's more, some installation expenses may not be covered. If, for example, a new water heater requires changing pipes or making structural modifications, that part of the bill could be on you. Again, read your contract carefully. END