Can you save money with a home warranty?

Every homeowner is stuck with the doubt: Is a home warranty a good solution? Will it save me money? This is a question that has a broader answer, rather than a simple yes or no. It all depends on your chosen plan, the current state of your appliances and systems, and if the company you work with is reputable. Read on and find out more!

Low maintenance costs

Your important appliances and systems that help you in everyday life can fail unexpectedly. Since they are crucial, you can’t postpone the reparation process.

This is especially important for more expensive appliances and systems. In some cases, the annual premium plus the out of pocket sum will take only a fraction of the cost that you would pay for an individual repair. Take the water heater for example. The fixing cost can be about $1,000, while an annual premium for a home warranty can range from $300 to $500. Add the service call cost that ranges from $150 to $200. You saved money with only one repair.

Do you really need it?

A home warranty plan is meant to give you peace of mind. But, you have to consider the reasons why you are buying it in the first place. There are many cases in which homeowners avoid buying the home warranty.

A home inspection will give you the answers. They will tell if your home appliances and systems work well. Based on that, you can make a proper decision.

To make sure that you really need a home warranty, check if any of your appliances have a warranty.

Get a reputable provider

Find out which are the reputable providers in your area. This is the first step towards saving money. Homeowners aren’t satisfied with some companies. Why? Because they insert some tricky conditions in the fine print. They can offer partial coverage, or make you wait for hours on the phone to contact them. And you certainly don’t want to lose your time and money in the process.

Covering important appliances and systems

If some of your appliances or home systems fail, you can face repair costs for up to a few thousand dollars. You can save good amounts of money with the right plan. Some of the most expensive home repairs are leaking roof, problems with the pool, malfunctioning HVAC, faulty electrical system, plumbing, septic systems. Also, let’s not forget about the costs of fixing important appliances such as dishwasher, washer, and dryer.

Make a list of all critical points in your home that might fail in the near future. You can exclude the ones that are new and are already being covered by the manufacturer’s warranty. Including them means a double cost that falls on your side. When you have your list, compare to the plans that the providers offer to you. This way, you will make sure that your chosen plan is feasible.

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