We all agree that living up to an acceptable standard is costly. Budgeting can be quite hectic and following a budget seems to be even harder. If you are constantly going way beyond your budget by spending a hefty amount of money on your housing, then we suggest you take a break and assess if you actually are doing it right.
With rising inflation, job insecurities, and increased overall living expenses, house renovations and repairing costs could reach a fortune. However, a home warranty protects homeowners from expensive home maintenance and repairs. It can save you much more money than you know.
In this article, we take you through:
- Difference Between Home Insurance and Home Warranty
- Home Warranty Plans and Pricing
- Can You Really Save Money?
- How Much Money can you Save?
Difference Between Home Insurance and Home Warranty
Don’t confuse between the two – they are both different. Home insurance provides coverage against major catastrophes such as fires, floods, water damage, and so forth. Whereas, a home warranty covers routine maintenance or breakdown repairs which, when stacked together, can cost homeowners up to thousands of dollars. Experts advise that home warranty is as beneficial as home insurance.
Home warranty plans and pricing
Home warranty plans differ from company to company. Based on the plan a homeowner chooses, when items that are covered get broken or require repairing, the home warranty service providers arrange the best contractors to oversee the damages and make discounted repairs or replacements. House warranties usually cover household items such as fridge, AC, furnace, washers, and other appliances. Based on items you’d like your home warranty contract to cover, you can choose from a wide range of plans.
Home warranty prices usually range from $300-$600 per year, depending on firms and plans. Some companies also offer monthly packages at $30-$50 per month. Sounds convenient, right? Pricing can also vary depending on the size of the home, its age, current condition, and location.
Can you really save money?
Let’s Understand how a home warranty works
If your washer breaks down and is beyond repair, your home warranty will split the replacement fee with you – with them paying a larger chunk of the money. Consider that the new washer costs $1,000, (based on your contract, of course) you might end up paying as low as $250 while the remaining expense will be covered by your home warranty contractors. The answer to your query is simple: you do save money – in fact, lots of it.
Research says it all
Households, on average, spend around $2,000 in annual repairs and maintenance. Research reveals that over 60% of people hire contractors or professionals at least once a year. An estimated 30% of American households had to make emergency repairs at some point during a year.
Be smart and save money
Without a home warranty, repair costs can quickly escalate – as shown by the example above. Technicians generally charge a hefty amount of money only to diagnose the problem and charge an hourly wage for labor. The cherry on the top is the hassle of chasing these professionals for repairs and replacements. Home warranties can help homeowners save over $800 annually on repairs for plumbing, mechanical systems, electrical systems, and appliances. Additionally, it also saves up to $3,000 on replacements for items covered under the chosen plans.
How much money can you save?
Consider Common Repairs as References
The average lifespan of household appliances is 9-10 years. If you’ve been using the same ones for quite some time now, it is highly recommended that you consider getting yourself a home warranty. Here’s how much money you can save in repair costs per year.
The cost of repairs for some household items without a home warranty coverage is listed below;
- garbage disposal systems: $150
- heating systems: $500
- water heater: $1,100
- microwaves: $250
In a hypothetical situation, yet very possible, where all four systems need to be repaired in a year. In this case you will need to spend $2,000. However, an annual home warranty, costing you $300-$600, will cover all these repairs without any additional cost. You are looking at a $1,400 savings per year at the very least in such a case.
Prepare for the worst
A very common reason for damage to appliances, and fires in homes is the event of short circuits. Wires with defective insulation may get in contact with any conducting material leading to fire eruptions. While we hope that it doesn’t happen to anyone, short circuits are fairly common and could damage every electrical appliance in your house. This is exactly where home warranties come into play and can save you from spending thousands of dollars on repairing costs.
Bottom line – Be smart and save money
A home warranty saves you a considerable amount of money and gives you the peace of mind of knowing that your house and appliances therein are covered for repairs and replacements.
People spend all their lives saving money to buy their dream house. Now That you understand how a home warranty works Get a home warranty and protect your dream home from any damages and save money.