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While you might think home insurance is good enough, In Canada there’s a difference between insurance and a warranty. If you want to be entirely secure in your new purchase, it may be a good idea to purchase a home warranty as well. Insurance will protect your home against natural disasters and fires, but a warranty will protect your home against issues that might arise with the foundation of the home itself. Here are the benefits:

Peace of mind. A new home is a sizeable investment of not just your time, but your money. Imagine moving in just to find there is an issue? The last thing you want to do is fix something that is broken two weeks after moving in. A warranty will mean that if anything breaks, someone will be sent over to fix it fast, at little or no extra cost to you. If you’re not particularly experienced with a hammer and nails, it’s a great benefit to have on hand.

It allows you to manage your money ahead of any issue. Rather than waiting for something to break and finding out how much it will cost to fix it, with a warranty you already know what the premium and deductible cost is, so there are less financial surprises. You also know exactly what it does and doesn’t cover.

Older appliances will need to be replaced. If your home has older appliances in place, they are likely to break sooner than later, and these items cost quite a bit to replace. If you’re in this position, it’s a great idea to purchase the warranty, which will be there to replace these items as soon as they break.

Read through the policy until you fully understand it. As beneficial as a warranty is, it doesn’t cover everything. It’s a great idea to shop around to find the warranty that works the best for you and your particular home and financial situation. And once you’ve found one you like, read the policy over and over until you fully understand exactly what it does and doesn’t cover, and how much the deductible is going to cost you when something does need repair.