Finance

Why a home warranty is a smart financial decision

Home warranties are popular among homeowners. There are so many reasons for his. A good home warranty plan will make you feel calm and safe. Especially if you buy a preowned home. Another great benefit is that you won’t have to worry about the technical part of the repairs. Homeowners that aren’t experienced in DIY repairs should only contact their company if any problem occurs. They have their own professional contractors, so you don’t have to look for a trusted one in your area.

How do you know if it is a good decision? The financial aspect of obtaining a home warranty is very important. If you don’t have an emergency fund, bearing unexpected costs can be difficult. To avoid this kind of situation, a yearly plan will help you. It is a feasible option for your budget in any case.

Financial security

Owning a home comes with its own costs. As a homeowner, you know that unpredicted costs can happen at any time. Repairing an important home system such as the HVAC can cost up to a few thousand dollars, depending on the damage.

Home warranty plans will cover costs for repairs or replacement of the appliances and systems included. Your plan will cost anywhere from $30 to $50 monthly. This is a small sum compared to the money that you will save. Especially if your appliances are worn out and will need repair soon. The cost of your plan depends on a few factors, such as location, size, and content of your home. Many companies offer free quotes, so all you need to do is give them the info.

Good coverage

A typical home warranty plan will cover crucial mechanical systems and appliances. If yours are worn out and you think that they will need repairs soon, it is better to obtain your plan soon. If some of the home systems or appliances fail, your company will cover a great part of the costs.

Most of the basic plans will include:

  • Mechanical systems: electrical systems, plumbing, heating and air conditioning.
  • Appliances: water heater, oven, dishwasher, built-in microwave, garbage disposal units.
  • Additional appliances/systems that you can add: washer, dryer, pool, sauna, phones, septic systems.

Convenient plans

Home warranty companies offer different plans. It is up to the homeowners to choose what suits their needs and budget. Basic plans can range anywhere from $300 to $400 per year.

You can pay an additional premium if you want another home system to be included in your plan.

Some companies are favored because of the freedom they give you. They can offer basic and premium plans, which already have determined the covered appliances and systems. Others are more flexible and will let you choose the things that you want to be included, and calculate the price based on that.

When picking a good plan for you, make sure that you do the calculations first. Check the plans from the companies that cover your area and find the most feasible one for you.

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