As a homeowner, you take on a big financial load. After your down payment, you’ll have to cover home insurance, property taxes, mortgage, and possibly the homeowner’s association (HOA) fees. And that’s only the beginning. Then, you need to furnish the house, maintain it, and maybe upgrade it.
If you are a first-time homeowner, all these expenses may make you faint. You might wonder how you can save money after paying for all these things. One way is by purchasing a home warranty.
As a new homeowner, replacing or repairing your HVAC, plumbing, and electrical systems, or any other major appliance that you use every day can have a serious impact on your finances. A home warranty can protect you from such a large expense.
Purchasing a home warranty is like a safety mesh for your finances. It can safeguard you from paying the typical costly replacement or repair bills when home appliances and home systems break down.
When a home appliance or system breaks down, you’ll have to adjust your budget to have it repaired or replaced. A home warranty can help protect your budget by paying for these unexpected expenses. What you might pay out of your pocket with a home warranty compared to what you would pay without a home warranty can be a significant savings.
Which Home Warranty Policy Suits You Best?
Home warranty policy providers provide a range of plans designed to suit the needs of different homeowners. If it is your first time purchasing a home warranty coverage, it can be challenging to choose one that suits you. Start by determining your home’s age. If you have a brand new home with modern appliances, you likely won’t benefit from a home warranty. The appliances will most likely be covered by the manufacturer’s warranty and contractor’s warranty.
On the other hand, if you purchased a home over a decade old, you should consider purchasing a home warranty. At this stage, home systems and appliances start experiencing serious problems due to normal wear and tear. It is cheaper to purchase a home warranty than to pay for replacements and repairs out-of-pocket.
Next, check review sites that assess home warranty policy providers. By going through the various home warranties in the market, you can get something that suits your budget and needs.
Who Benefits From a Home Warranty?
There are two groups of people best served by a home warranty – homeowners and real estate investors. As mentioned above, appliances and systems start to wear after 10 years of constant use. If your house is more than 10 years old, you will spend an average of $1,750 annually on repairs. However, the average cost of a home warranty is $600 per year. Even after five $70 service calls per year, you would still save about $800 per year.
Landlords also benefit from home warranties. If you manage multiple properties, do not spend your time fixing appliances and systems. Purchase a home warranty, and all you will need to do is call whenever a problem occurs. Let a professional contractor handle the issues while you continue with your day-to-day activities.
Don’t Let Home Maintenance Expenses Drain Your Wallet
Owning a home is an expensive venture. Maintaining your home contributes significantly to household expenditure, catching many homeowners by surprise.
At a minimum, a home warranty policy can save you hundreds of dollars. If your home is more than 10 years old, consider the money-saving benefits of a home warranty.