How Much Does a Home Warranty Cost?

When electrical appliances or systems in your home stop working, you look for professional services in your area, compare their quotes and quality of work, and then determine which company you should contact. But did you know that a home warranty plan can save you from these hassles?

Home Warranty

A home warranty plan covers the costs of repairing or replacing basic systems or home appliances on your property. It’s particularly useful if you have bought a house for the very first time and have no idea of how to maintain a home.

Many people confuse home warranty with home insurance, but these are two distinct plans. Home insurance plans cover roofing problems and structural damages, while warranty plans cover costs that aren’t included in your insurance coverage such as and maintenance or repairs of home appliances.

If an appliance or system stops working, call the warranty company at the earliest. After inspection, the professionals will repair the system. However, if it can’t be repaired then the contractor will replace the entire system without any additional charges.

The warranty coverage varies with the plan you choose, but here are certain appliances and system that you should include in the plan:

  • The central air conditioning system
  • Ductwork
  • Plumbing pipes
  • Water heaters
  • Refrigerators
  • Garbage disposal
  • Oven range

Costs of a Home Warranty Plan

The average cost of a warranty plan usually ranges between $300 and $500. For every repair call you make to the warranty company, you have to pay an additional sum of $70-$150.While it may seem expensive, it saves you costs in the long run and is nothing in front of the convenience and peace of mind it brings along.

Warranty companies also offer special discounts from time to time. You can make the most of such discount offers and buy a warranty plan ateven lower rates. Before you sign a contract, make sure you discuss the costs covered in the plan.

Home warranty plans are prepaid for a year in advance. Before the plan expires, don’t forget to contact the company and review your plan. The renewal costs may vary with vendors.

When You Should Buy a Warranty Plan

When you buy a house that was in use by the previous owners, you aren’t aware of the existing problems with the home system and appliances. If something goes wrong after the purchase, you’ll be burdened with the costs of repairs. It affects your financial situation and leads to monetary problems.

This is the reason why many home buyers opt for a warranty plan when they buy a new house. Most plans cover major home appliances and systems. You can also upgrade the plan at reasonable rates for coverage of the items that aren’t included in the plan. It ensures you don’t end up experiencing a financial crisis due to unexpected repairs.

So, don’t delay the purchase of a home warranty plan and opt for coverage that suits your needs. This way, not only can you enhance the lifespan of the home equipment, but also manage your finances more effectively.

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