There has been a lot of hype about home warranties lately. While many homeowners have already jumped on the bandwagon and purchased plans that cover appliances, home systems, and more, others are hesitant. This article will offer an overview of what home warranty plans cost and whether it’s worth paying the monthly fees in return for protection and peace of mind.
What Are Home Warranty Plans?
Home warranty plans, also called home protection plans, are technically third-party service contracts, but they function very much like the extended warranties that people often get for cars and other major purchases. The difference is that instead of paying for the entire thing upfront, homeowners can pay a reasonable monthly fee to keep their plans active. They can then call the home warranty company to get help with paying for repairs or replacements to covered appliances and systems for the duration of their coverage periods.
What Home Warranties Cover
Home warranties cover damage that occurs due to regular wear and tear. When a covered appliance breaks down, all the plan holder has to pay is a reasonable service fee for the initial inspection. Once a qualified technician identifies the problem, it doesn’t matter how much it will cost to fix it. The home warranty company will pay for the repairs or, if necessary, replace the equipment.
When Home Warranties Are Worth It
Home warranties are worth the money for anyone who has appliances or equipment that have already outlasted their manufacturers’ warranties. Even with adequate maintenance, there’s no telling when a major appliance or home support system could stop working, and the repair bills for fixing appliance breakdowns can be surprisingly high. Knowing that repairs and unit replacements will be covered without out-of-pocket costs can offer homeowners some extra peace of mind and make it easier for them to budget.
When Home Warranties Aren’t Worth It
There’s really only one circumstance under which it’s not worth paying a small monthly fee for home warranty plan protection, and it’s when people commission the building of new homes. New homes also have new appliances and plumbing, heating, cooling, and electrical systems. The equipment is generally covered under manufacturers’ warranties, and most home builders already offer builder warranties. In this case, it makes more sense to wait until the original manufacturers’ warranties begin to expire to take out a home protection plan.
How to Choose the Right Plan
There are different types of home warranty plans available with a variety of coverage options. Homeowners shouldn’t base their decisions about which of them to purchase on cost, alone. Instead, consider what major appliances and systems need coverage, then ask about customizing the most appropriate plan to minimize cost and maximize protection.
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Find a Reputable Home Warranty Company
There are plenty of home warranty companies out there, but not all of them have reputations for excellence. Some try to swindle customers by tacking on hidden fees, while others fail to disclose payout caps. Look into the home warranty plan provider as well as its coverage options to make sure the company has a reputation for reliability and good customer service.