Wednesday, March 25, 2020

Can you save money with a home warranty?

Things break. Paying for them when they do is expensive, and can be a big burden on home owners (which is why some people choose to be permanent renters, so that their landlords can take care of that hassle). One way people deal with these expenses is by having a home warranty. Read on to see what a reader has to share with us about the topic.

Being a homeowner can be so expensive. That’s why people are trying to find new ways to save money. One of the most significant cost is repairs. If you own expensive home appliances and systems, you know that a single repair can cost from a few hundred to a few thousands of dollars. Obtaining a home warranty is one of the ways to secure your budget. Read on and find out more about it!

How much does a home warranty plan cost?

Many homeowners would like to know about the cost of a home warranty plan. Keep in mind that companies offer different plans, so you can pick according to your needs. Most of them offer a basic plan, which is the cheapest option. Keep in mind that it covers a basic range of appliances and home systems

As an addition, home warranty providers have at least one premium plan. It is an upgrade of the basic plan and has additional appliances and systems included. Make sure that you check what is included in each plan to find out if it is feasible for you. Some companies give you the option to build your own plan. This is a good option if you are very specific with your needs.

A plan can range from $300 to $600, depending on what is included.

Check out House Method for the estimated cost on a monthly level. The plans range from $28 to $60 per month. Many homeowners think that this is a small sum, compared to the money they will save on repairs.

How much does a home repair cost?

We know that home repair can cost much. If you don’t have an emergency fund for unexpected damage, then it will be difficult for you to bear the cost.

The water heater is a very important system that you can’t live without. Keep in mind that an average repair will cost you from $500 to $1000. If you have already obtained your home warranty plan, you will pay a small cost as a service fee.

HVAC is the most complex home system, so it will bring higher costs. An average repair can cost around $340. If the system is already old and needs replacement soon, keep in mind that you will have to pay around $5,000 for the service. But again, homeowners that have a home warranty will only call their company and pay a service fee.

Even when you add the service fee, in some cases the home warranty will pay off on the first call. Knowing the costs for an average home repair, the cost for a home warranty plan is justified.

Can you save money?

The answer is yes. But, you will need to make sure that you have the right plan. Check if all the home systems and appliances together with their crucial components are included in the coverage. Read the terms and conditions well before you seal a deal with your home warranty provider.