A home warranty is a need of everyone having a home and wanting to save some of their hard-earned money. It is a contract which usually goes for one year and covers repairing and replacements of home appliances and systems. Many home warranty plans offer you customized plans covering all components of your house including air conditioning systems, plumbing, heating systems, a motor pump, a freezer, or even a pool.

Difference between a home warranty and home insurance

Home insurance entertains you for damage or loss caused by unpredictable events like weather or fire damage. They don’t compensate you if your washing machine needs repairing. While home warranties protect your home appliances and systems from collapsing due to routine wear and tear such as if any home appliance is not working, they compensate you by repairing or replacing it with a new appliance. 

What does a home warranty cover?

Only the right home warranty can save you money and can give you peace of mind, so before going with any warranty plan you should know all its conditions and coverage. Usually, home warranty plans cover home systems and appliances that are in good condition or are newly purchased. So before contracting with a home warranty plan you should know its coverage, any cap limit on coverage, and deductibles or trade call fees. 

How does a home warranty work?

You have purchased your new air conditioner last year, suddenly it stops working and the manufacturer’s warranty is also expired, what will you do now? You will spend hundreds of dollars to fix it which will ruin your budget. To avoid this disaster, it is wise to avail of the right warranty plan which can help you when you need it. Most home warranty providers are often one call away and take care of all your worries.

How much money can you save by having the right home warranty plan?

When something from your home breaks down, you will contact your home warranty providers to find the problem, if your technician diagnoses the problem in that home appliance that is under the coverage of the warranty plan then that appliance will be repaired or replaced without any additional costs. 

If you don’t have a home warranty, then damage to any home appliance would cost you big as a technician will charge you diagnostic fees to come to your house and to determine the problem and then will charge for repairing or replacement of the appliance. If you compare both pictures, then you can easily imagine how much you can save by investing in a home warranty. Let’s have a look at the cost of malfunction of different home appliances.

How much could you save when your refrigerator stops working?

One day you find that your refrigerator is not working and spoiling the things that are placed in it, you will at once make a call to your warranty providers if you have purchased the warranty then you can save more than $600 in repairing and $1500 in replacing the old one with a new product. If you don’t have a home warranty, you’ll be forced to pay this money out of your own pocket.

Saving money on a damaged dishwasher

Dishwasher adds convenience to your daily life as you don’t have enough time to hand wash everything. One day you load the dishwasher to rinse your dishes, but you find out that your dishes are not cleaned because your dishwasher has stopped working. In that case, if you have enrolled for a warranty plan, you will immediately call service providers and your technician will reach to you to fix your dishwasher without additional charges. You will be glad that you have saved $200 for repair and $600 for replacement and can put that money to better use.

Malfunctioning of water heater

If your water heater doesn’t work, then it can add discomfort to your life as cold showers could be intolerable for you. To fix this problem, you will go for a change of water heater and it will cost you more than $850. But if you are a home warranty holder, then you can fix this issue through your service providers without any additional charges.

Saving money on furnace repairing

When your furnace is damaged and you are delaying its repair, it will cost you heavily because it will add other expenses like repairing frozen pipes and extra laundry due to putting on more layers of clothes to be safe from cold. When you will go to fix it and you don’t have a home warranty plan, then your technician will charge you around $450 for repairing and $6500 for replacement of the furnace, you could save this huge amount if you have availed a warranty plan.

Saving of time

A home warranty plan doesn’t only save you money but also your precious time. If you have not purchased a warranty plan and any of your home appliances are damaged then you will go in search of the right technician to fix it, you will spend time purchasing the right part of your technician suggests you repair it. If your technician tells you to replace it then you will invest your time in selecting the right new appliance at the best affordable price. To avoid all this hassle, it’s better to enroll in a home warranty plan so you can save your money and time while reducing your stress and giving you peace of mind.

How much does a home warranty plan cost?

An average home warranty costs between $300 to $600 annually, they offer you annual deals for $1000 or even less than that for an old house. If your house encounters an accident or your home appliances are damaged, then their repair will cost you heavily. While home warranty providers will entertain you in your emergencies in a very less amount which is normally less than $1000 avoiding creating any panic situations. 

Save money by opting right home warranty plan

If you are shopping for a home warranty for the first time, then first do detailed research about plans, deductibles, and coverage and then decide to have the right home warranty.

First evaluate your home if it is newly constructed and all appliances are brand new, then there is no need of purchasing a home warranty because the repairing costs will be lower than your monthly premiums. If you have purchased an old house and appliances are not in good condition and soon, they will suffer serious problems, in that case, buy a home warranty plan because repairing costs will be higher than your monthly premiums.  

To go with the right home warranty providers, make a comparison of all service providers that are under your consideration, you will surely find the warranty that is easy and affordable to your pocket. You could save plenty of money if you rightly select the home warranty plan. 

Are home warranty plans worth it?

Yes! Home warranty plans are beneficial. You can save more by having a home warranty for an old home as the cost of repairing would be high. So, it’s totally worth it to go for a home warranty. 

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