Before you can use your hard-earned money, it is always important to ensure that what you are paying for is worth every penny. The same applies to insurance policies, and a home warranty is no exception. So, are home warranty plans worth the money? That’s a question you need to know the answer to before settling for a home warranty. Fortunately, this article can make you decide. It will clearly explain when the home warranty plans are worth the money and when they are a waste. So, without further ado, let’s discuss this million-dollar question.
- Are home warranty plans worth the money?
- When are home warranty plans worth the money?
- When are home warranty plans not worth the money?
We will discuss those things in detail to help you make the right decision. However, before we can even talk about its worth, it is important to stress that a home warranty is different from an insurance policy. Its role is to serve as a service contract to repair and replace the items it covers, including your major kitchen appliances. It can also help with your home’s various systems, such as air conditioning, heating, electrical, and plumbing systems. Equally important, a home warranty won’t cover any structural feature, including the doors and windows. Doesn’t that shed some light on what to expect from your home warranty?
So, if you are worried about loss and damage emanating from various perils such as fire and theft, a home warranty isn’t sufficient. You may want to consider purchasing a homeowner insurance policy.
Are home warranty plans worth the money?
We are aware of what a home warranty covers. So, does that compare to the cost you pay to be covered? That’s a good question to help you determine whether the home warranty plans are worth the money. On average, people spend between $220 and $1800 to have a home warranty plan. Homeowners have to dig deeper into their pockets to cover septic systems, washers, dryers, and pools. Besides, there is also a service calls fee of $60 and $100.
On the other hand, repairing and replacing major systems and appliances isn’t cheap either. A homeowner might end up spending hundreds if not thousands of dollars just to replace or repair them. What about a rough idea of the expectation? For example, repairing an appliance can cost between $105 and $240. That’s the cost of a home warranty plan, and that should tell you that having one can help you save a lot. A water heater will cost you between $812 and $1500, whereas a gas furnace would see you incur a cost of between $3800 and $10,000. Another expensive repair and replacement is a central air conditioner ranging from $5000 to $12,500.
So, from the above discussion, are home warranty plans worth the money? If you can afford such huge amounts at a go, then you may find it not worthy. However, if these expenses even go beyond what you earn, a home warranty would go a long way.
When are home warranty plans worth the money?
As much as it is up to you to decide whether you will purchase a home warranty plan or not, there are times when experts will tell you to buy one without giving it much thought. An excellent example is when buying a home that had a previous owner. Once to carry out a home inspection, take note of the findings. If you realize that the lifespan of the systems and appliances is almost lapsing, don’t hesitate to get a home warranty. As a matter of fact, ensure that you get it from one of the best insurance providers. Understanding the terms and conditions of that particular plan will also go a long way. Please note what it covers and for how long, and what it doesn’t cover.
As a homeowner who wants to sell a house, buying a home warranty plan is advisable. Experts say that it is one of the things that home buyers consider when purchasing one. Since they can’t tell the exact time your system or appliance will need a repair or replacement, they want to be safe in case it happens sooner than expected. The maintenance history of the systems and appliances can give you a rough idea of what to expect, no doubt.
When are home warranty plans not worth the money?
Whereas a home warranty plan is good, there are times when it isn’t worth buying. Yes, you heard that right. For instance, don’t bother buying a home warranty if you have a brand new house. That’s because home builders and appliances’ manufacturers usually offer their customers a warranty. Warranties cover various cooling, heating, electrical, and plumbing systems. Additionally, their periods range from 1 to 10 years, depending on the system, the appliance, and the manufacturer and builder.
Basically, new things hardly break. Therefore, having a home warranty plan may be a waste of time. You also don’t have to worry about what to do when it breaks. After all, the warranty will cover its replacement or repair if a need arises.
Additionally, if you are keen on regular maintenance of your systems and appliances, their issues will be detected on time. Therefore, any repair needed will always be done on time, thus reducing the cost needed to cover it. Under such circumstances, a home warranty plan may be a waste of money.
Conclusion: Are Home Warranty Plans Worth the Money
Once you ask the above question, the answer can differ from one homeowner to another. Some situations make such a plan a must-have. If you are in such a situation, those highlighted in think discussion, you can always seek the assistance of the experts, and an excellent example is FindMyQuotes. However, if you fall under the category that doesn’t need a home warranty, you don’t have to waste your time buying a plan. Otherwise, you may never use it since the systems and appliances never fail, or another cover covers the repair and replacement costs.