Why Keeping a Home Warranty is Worth it: How a Home Warranty Protects against Unexpected Expenses

It’s something that most people don’t think about until something goes wrong. You wake up one morning and realize that your refrigerator has broken, or your AC unit needs repair. Home repairs are never fun, but some of them can be downright expensive if you’re not prepared to pay for them out of pocket. That’s why it’s smart to keep a home warranty on hand in the event that something goes wrong. It could save you big bucks down the road when it comes time to pay to fix common household issues like AC breakdowns, plumbing problems, and more…

Covering Unexpected Expenses

Home repair expenses that pop up out of nowhere can be frustrating and disruptive. If you’ve never needed a home warranty, you might wonder why in the world people pay for such a thing. But when a plumbing problem or another unexpected expense requires an emergency fix, the thought of having an extra layer of protection may become much more appealing. On top of the expense, there are also the issues of researching different contractors, scheduling times for estimates, communicating with them and juggling complicated paperwork. Rather than dealing with these headaches, paying a small monthly fee (or even one-time fee) can make your life much easier if you need some urgent help from your home’s various systems by having a home warranty.

Common Issues Covered by Your Home Warranty

For most of us, our home is one of our biggest investments. Although we think we will take good care of it, things happen. Plumbing and HVAC issues are common problems that can affect homeowners at any time. They typically arise at inconvenient times too, like early in the morning when you are getting ready for work or in the middle of a dinner party. Many homeowners are surprised to learn that most home warranties do not cover maintenance issues or repairs but only replacement products as outlined on your plan’s agreement. In addition to giving you peace of mind with regards to unexpected expenses, your warranty could help save you money because some contracts will pay for a percentage of labor costs in addition to paying for replacement parts.

Where Can I Buy My Home Warranty Policy From?

There are a lot of places where you can buy a home warranty policy from. It’s easy to search for reviews about each company online, before buying a plan. For example, if you do your homework, chances are good that you’ll find plenty of feedback from customers who have used certain providers before. They often say whether or not they recommend those companies—and what their experiences were like. In addition, we can help with that. We can connect you with the companies that are reputable and worthy of your time and business.

When Should I Get One?

If you’re purchasing a home warranty, experts recommend you get one for new homes when you close on your mortgage. These warranties are typically not paid for by your lender but rather paid for out of pocket at a cost ranging from $100-$1,500. For example, if your home warranty company charges $150 per year and you purchase three years’ worth of coverage, that would be $450. You can usually recoup these costs through tax deductions.