Owning a home is a tremendous lifelong investment that doesn’t stop at just acquiring the property. After paying for the house, you still have other bills to pay, as well as furnishing, maintaining, or upgrading it.
A home warranty is a contract that covers the repair of many home appliances, structures, and systems. Depending on the type of plan, home warranties can cover either systems, structures, appliances, or some combination of the three.
But how does it really work? Will it save you money?
Imagine having your heating system break down in the middle of winter, or have your oven stop working right before you are hosting a holiday meal. Calling an emergency repairman can be extremely costly and they will charge exorbitant fees just to show up at your door. Furthermore, to repair the appliance or system you will need to pay out of pocket for both the labor and the cost of the parts. In extreme cases, you might need to replace the whole appliance which can cost thousands of dollars and leave you in debt.
This is what could happen to you without a home warranty.
On the other hand, with a home warranty, if an appliance, system, or structure breaks down or becomes faulty, you can simply call your warranty's 24-hour hotline and within a few hours, a repair specialist will arrive at your door ready to provide service.
Most home warranty plans cost between $300 and $700 annually with service call fees ranging from $55 to $100. A tiny concession considering what you’d be spending on replacements and repairs in the event something breaks unexpectedly or wears out completely.
Companies like Choice Home Warranty, Select Home Warranty, and America’s 1st Choice Home Club have glowing reputations and all offer customized home warranty plans. Choice Home Warranty, our best value pick, even offers one month of their comprehensive home warranty for free.
Ultimately, when deciding on a home warranty company, it's best to read some reviews and determine which systems, structures, and/or applianced you want to insure. Once you pick a home warranty provider, they will provide you with a free no obligation quote which you can then compare to the cost of fixing or replacing an appliance out of pocket. You'll quickly see that yes, home warranties can definitely save you money.