When you own a home, there is so much to do that the responsibilities can sometimes feel overwhelming. The time you spend maintaining your home and addressing concerns can be extensive, but the financial commitment can be a burden. A home warranty can help relieve financial burdens and give you the peace of mind you need.
When it comes to your household appliances and other systems, you’re grateful for the benefits they provide. But at the same time, these items can frustrate you when they wear out or stop working. Paying for repairs or replacing them can be expensive.
If you don’t have the money to take care of these needs, you can be in a difficult position.
Preparation and planning are critical if you want to fix broken parts of your house and keep it feeling comfortable and offering the conveniences and safety you need.
Understanding What a Home Warranty Is and Does
Before you can decide whether a home warranty is right for you, it is important to know how it works and what it protects. Homeowners insurance covers losses in your home due to catastrophic events. But a home warranty plan takes care of repairs and replacements when something no longer works due to normal wear and use. The plan is an agreement where you pay an annual or monthly fee, and the warranty company will send a service technician to your home to address issues with appliances or systems.
A warranty usually costs between $300 and $700 a year. You can pay it all upfront or split it up into monthly payments. The plan will cover kitchen items, such as the dishwasher, range, refrigerator, garbage disposal, and built-in microwave. It will also provide protection for your washer and dryer, water heater, AC unit, and furnace. A home warranty will also cover your entire HVAC system, sewer line and plumbing, electrical system, and sprinkling system. If you have a swimming pool, the warranty will also cover that feature.
A home warranty isn’t valid if the appliances or systems broke because they were installed improperly or if you didn’t use them correctly. Breaking these items on purpose will result in claim denial. Also, if you haven’t been diligent about serving and maintaining these items, you may not have coverage when they stop working.
A Home Warranty Can Save You a Significant Amount of Cash
If you compare how much appliance repairs and new installation is with the cost of a home warranty, it is obvious why this purchase makes sense. Instead of paying for repairs or the replacement of an item, the servicer will take care of it at no cost. You only have to pay for the warranty and the service call fee, which is ordinarily around $100.
Conversely, fixing appliances and systems can easily exceed what you would spend on the warranty itself. Even minor issues with a dishwasher or refrigerator can cost $100 or more. Extensive problems with an appliance can cost hundreds to fix. If you need to replace an appliance or overhaul a system at home, it’s not difficult to imagine paying more than $1,000, sometimes up to $10,000 or more. Now consider what would happen if two or more items broke at the same time. Your home warranty expenses could be well worth the effort with just one service call.
You Don’t Have to Fix It
A lack of money can always be a concern when something breaks down and needs attention. Limited time and skills can also be barriers to making necessary repairs. If something needs new parts or any mechanical work at all, you may not have the time or know-how to handle these issues. A home warranty allows you to call the professionals who can get your appliance or system working like new again.
While the technician fixes your item or installs a new one, you can avoid the hassle of trying to do it yourself. You can have confidence that this professional will do it correctly and safely. Meanwhile, you can focus on other responsibilities.
Things Are Bound to Break
A broken appliance or a run-down system is an inevitability that every homeowner will encounter. No household convenience will last forever, no matter the quality of its design and construction. To prepare for these problems, a home warranty is an excellent choice. This is especially true if you have an older home and appliances that are coming near the end of their life span.
If the thought of paying thousands of dollars for home repairs is keeping you up at night, consider buying a home warranty. This plan can save you money, time, and a whole lot of stress and grief. In many cases, it makes sense to invest in this protection.