Home warranties can reduce repair costs, especially if you have older appliances or need-to-repair home systems. Learn how you can benefit.
You may ask yourself, why should I invest in a home warranty? When managing your household budget, there are many important considerations and numerous resources. Maybe your New Year’s resolutions include looking for new ways to save money and be frugal as you get your finances back on track after the holidays.
Learn how a home warranty can help save you money on repair costs for appliances or home systems. Here are a few things to think about:
Older appliances and systems
Do you ever hold your breath and keep your fingers crossed that your refrigerator, stove or air conditioner will make it through the year? You know it could be a big expense and a hit to your budget. A home warranty can help ease your mind in knowing when an unexpected breakdown happens, you have a plan in place. A home warranty is a service contract that covers repair and replacement costs of the covered items in your contract. You pay a monthly or annual fee for your coverage and usually a set trade service fee when a service technician comes to your home.
Considering a home sale or purchase.
Often home warranties come into play during a real estate transaction. Sellers find them advantageous because they are attractive to buyers and help give buyers more confidence in their purchase. Also, as a buyer, it is an excellent feature to help with unexpected repair costs once you are in your new home. Wouldn’t you rather spend money on decorating rather than fixing things? You can ask a real estate professional about adding a home warranty to a transaction.
If you are not a fan of big unexpected expenses, a home warranty may appeal to you. You can weigh the advantages of the annual home warranty cost compared to the potential expense of a big repair or replacement. Replacing a major home system without a home warranty can result in thousands of dollars in an out-of-pocket expense.
Locating a reputable contractor.
If you’re like most of us, the plumbing breaks or your refrigerator goes dark typically when it’s most inconvenient. You start Googling repair people or reach out to friends and family to see what they recommend. You may even spend time reading reviews. Then, if you want to compare estimates, you try to schedule a few people to come out and may even pay a fee for each visit. Plus, scheduling people can be a challenge in itself. A home warranty helps eliminate this part of the process because when you make a claim, your home warranty company connects you with independent service contractors or technicians who can help solve your problem.
For the things homeowners’ insurance doesn’t cover.
Homeowners’ insurance is different than a home warranty. A home warranty is a service contract to pay for the repair or replacement of covered items, such as your appliances, plumbing or HVAC systems. Homeowners insurance covers losses if your home and its contents are damaged due to theft, fire or certain natural disasters. They complement one another for more comprehensive home protection.
Not all home warranty companies are equal. Look to see how many years they have been in business and how many dollars they have paid in claims made by homeowners. Look at their network of skilled professional contractors. Also, look at their industry awards. American Home Shield® is a home warranty leader providing protection for 45 years with a large network of service professionals and is consistently awarded by HomeWarrantyReviews.com
For more helpful tips, visit the American Home Shield® Home Matters blog.