This is one of the most common questions homeowners generally ask when it comes to home warranty. The decision to purchase a home warranty is based on your situation and budget. However, buying a home warranty is one of the perfect ways homeowners can protect their home appliances and systems.
The cost of repairs and replacements can cost thousands of dollars annually. If a homeowner doesn’t have an emergency fund and their system breaks down, they can be forced into consumer debt, which can hurt them financially. This is where a home warranty comes in; it will save you the headache because the home warranty company will handle all the repairs and even replacements if necessary.
But before we delve into further details, do you think you need a home warranty plan. Well, this article can help you make that decision.
What is a home warranty?
Before you find out whether or not you need a home warranty, you need to understand what it is all about. A home warranty is a service contract that is designed to protect your home appliances and systems. When your home appliance or system breaks down due to age or wear and tear, your home warranty will repair or replace it if necessary. A home warranty is there to save you money when your refrigerator or water heater breaks down unexpectedly.
How it works
ARW home insurance warranty works similarly to any other insurance policy. Each year that you want your appliances and systems to be covered, you pay a monthly or annual premium. The annual premium ranges from $300-$600, depending on the plan you choose and your home’s size.
When your dishwasher suddenly stops working or your HVAC system breaks down, you call the home warranty company and file a claim. The company will then send a contractor who will come and assess the appliance or system that is not working. If your claim is approved, the contractor will fix the appliance or the system. The only amount you will be required to pay is a service call fee, which can range from $50-$100.
The benefits of a home warranty
There are plenty of benefits to purchasing a home warranty plan. First, it can save you money. Research shows that homeowners could be spending thousands of dollars on repairs and replacements annually. On the other hand, a home warranty only costs about $800 annually. This amount is way lower than what homeowners are spending on repairs and replacements. That means that a home warranty can help save a lot of money.
When it comes to a home warranty plan, you have the option to choose which plans suits your situation. There are mainly two home warranty plans: the basic plan and the complete plan. The complete plan is more expensive than the basic plan because it covers huge systems, such as the HVAC system and the roof. Therefore, this flexibility in choosing a plan allows homeowners to choose a plan that suits their needs and budget.
A home warranty offers homeowners peace of mind. If your appliance or system breaks down unexpectedly, you know that a professional will come to fix it. Knowing that someone has your back will make you worry less about the whole situation.
The drawbacks of a home warranty
The main drawback of a home warranty is that not all appliances and systems are covered. This is why you need to read the company’s policy to know which items are covered and which ones are not. For instance, things that are not well maintained are not covered by the plan. Again, faulty items during the plan purchase time won’t be covered by the plan. In addition to that, an item may not be covered by the company if they don’t offer coverage of the said item. So, remember to read the contract before you sign the contract.
Making the decision
A home warranty is a solution for some of the homeowners’ maintenance concerns. However, it is worth mentioning that a home warranty is different from homeowners insurance because the latter protects the structure of a home from theft, fire, floods, etc. In contrast, a home warranty offers protection to a home’s appliances and systems.
The decision on whether or not you need to invest in a home warranty is entirely your choice. Just do thorough research before taking the next step, and then weigh the pros and the cons.