Are Home Warranty Plans Worth The Money?
Did you know that paying installments for home warranties is less expensive than the cost of some home repairs or appliance replacements?
28/10/2021
A home warranty can help to alleviate financial pressure due to repairs and replacement costs that you are likely to experience at home from time to time. Leaking faucets, faulty HVAC, and home appliances repair and replacement are common problems in most homes. Having insurance for home repairs helps you to enjoy more peace of mind. It will also not disrupt your financial plans in case of faulty home appliances or systems since you have a home warranty. Another advantage of having a home warranty is that it saves you time and the pressure of comparing various quotes from service providers. Paying installments for home warranties is also less expensive than the cost of some home repairs or appliance replacements.
What do home warranties cover?
The home warranties vary depending on your preferences and the choice of a home warranty company, explains Brentwood Square Management. But below are some of the things most home warranties cover:
- • Hot water system and storage
- • Electricals
- • Plumbing
- • Home appliances
- • Furnace
- • Air conditioning systems
You may also sign up for swimming pool repairs, septic tanks, drainage, and other home systems coverage but at an additional cost. Before signing the home warranty contract, you should read and understand the terms and conditions. There are some things that the home warranty will not cover. Below are some exclusions in home warranties;
- • Violations of the building or zone code
- • Structural and installation problems due to poor foundations, flooring, and general building procedures
- • Corrosion, sedimentation, rusting, and normal wear and tear issues
- • Asbestos and mold removal
- • Manufacturer defects or lack of proper care and maintenance procedures
- • Conditions pre-existing before signing the contract
Cost of a home warranty
The cost will depend on your coverage needs and the warranty company policy. The type of property will also impact the price. For new houses, the cost will be lower than for older homes. The reason is that for newly built houses, some developers offer warranties, and also the new systems are not prone to being the faulty hence minimal need for repairs and replacement. Another aspect to note about the warranty cost is the maximum warranty amount. When the cost of repair or replacement of any home appliance occurs, the warranty company will only pay up to the warranty amount, and the homeowner pays the difference. But professional warranty companies get the estimates right. That way, homeowners will not be subject to the additional financial burden of faulty home systems or appliances.
Benefits of a home warranty
1. It helps to protect your budget.
We all make budgets, and any additional cost that does not reflect in the budget can affect our finances. Having a home warranty helps to avoid such financial constraints.
2. Offers additional home protection
Homeowner insurance cover does not cover the services you may need for the home appliances and systems. It covers loss or damage to property due to theft, fire, or calamities. With a home warranty, you cover service costs for repairs and replacement of faulty systems.
3. Time-saving
Seeking repair assistance takes time. Sometimes home appliances and systems break down at the worst time of the day. Having a warranty plan ensures that you can timely access any home repairs assistance round the clock.
4. Extra savings
Some home warranty companies offer discounts on home warranties for various home appliances from reputable brands. They also give home management, care, and maintenance tips to help you run your home more efficiently to save on home maintenance costs.
5. Convenience and simplicity
Home warranty companies make it possible to conveniently access help when need be from a professional technician. The process is simple since the contacts are at hand. It is also financially convenient as you can factor the expense into your budget plans. There are no restrictions on coverage if a customer is willing to pay the warranty premiums, making it possible to sign up for coverage for older home appliances. The process to file a claim is easy too. You may file a claim via phone call or online. Again, reputable home warranty companies do not make it compulsory for a homeowner to undergo a home inspection before signing up for the home warranty.
Signing up for a home warranty is a worthy investment. Homeowners should seek such services from reputable home warranty companies. Through research and online reviews, you can identify some of the best home warranty service providers. Factors to consider are; company’s reputation, customer service level, experience, and expertise of its staff. For further home protection, a homeowner insurance policy is advisable.