If someone hears the word “warranty”, their mind is usually transported to a car warranty or a warranty for an appliance. Yet while they may not immediately think of it, warranties are also useful for those who own a home.
Typically associated with new construction builds but also applicable with older houses, a home warranty – sometimes referred to as a home service contract – provides coverage for certain appliances and systems. If these break down due to general wear and tear, the warranty will pay for their repair or replacement.
As with any warranty, there is one sticking point of getting one: the expense involved. However, if you’re wondering if home warranties are worth the cost, here are four reasons why you should invest in this coverage.
Reason #1: Save cash on home repairs
It’s an easy starting point, admittedly. Yet the main reason why you will want home warranty is to save significant money when items in your house break unexpectedly. Just remember that nothing lasts forever, and no matter how well your house is maintained, appliances will fail.
Repairs or replacements for the likes of a refrigerator or water heater can set you back hundreds of dollars. For those that don’t want to dip into their emergency fund or simply don’t have that type of money going spare, a home warranty can be a real lifesaver.
Reason #2: Comprehensive coverage is provided
Okay, a home warranty doesn’t cover every single item that resides in your house. It also doesn’t include the likes of doors, windows, and flooring. With that said, it does cover the main components of your home.
As for what these main components entail, a home warranty plan covers items such as:
- HVAC system
- Water heater
Reason #3: Saves time and energy
If you have experience with DIY, you may feel that you want to have a crack at any type of home-based repair. Yet this approach may not just cost you more money in the long run but also prove to be both time-consuming and energy-sapping.
The other option is to contact a local repair company, but shopping around to find the best person for the right price also takes time. With home warranty, the work is done for you in that regard. The warranty company will have partnerships with experienced and reputable technicians in your area, which means they can come right away to fix your issue.
Reason #4: Coverage is affordable
Due to the comprehensive nature of the coverage, it’s not that uncommon for some people to believe they wouldn’t be able to afford a home warranty plan. However, this warranty is more affordable than most think. You might only have to spend around $300 for premium annual coverage, with only a $50 to $100 flat fee per service request.
When you consider that repairing, say, your air conditioner could reach the four-figure mark; you could potentially save thousands of dollars over the years.