When it comes to having peace of mind as a homeowner, there are no guarantees. Things break. Appliances need replacement. Home systems require repair. Some homeowners have found that having a home warranty gives them the reassurance they need to deal with unexpected home hassles.
If you're thinking of buying a plan, you're likely in the process of weighing the pros and cons to determine if it's a worthwhile purchase. Of course, money and cost are top of mind when making such a decision.
But a question that might arise is “can spending money actually turn into a savings?” For many homeowners, the answer is "yes." Here's why:
Dodging the costly bills
When your systems or appliances break down, the math works out in favor of homeowners with a warranty plan. That's because the cost of a warranty is typically lower than the price tag that comes with repair and replacement projects.
Let's talk numbers: Home warranty plans typically cost homeowners $200 to $600 per year, which you can generally pay in one large sum or smaller monthly installments. When a faulty water pump prevents your HVAC system from working properly, however, you could be out $250 to $500 on just one replacement cost. Keep your fingers crossed that the water heater doesn't fail, because average replacement projects can cost upward of $3,000. Even a new window is pricey, with an average replacement cost of $500.
Learn More About Home Warranty Plans Near You
Thankfully, being prepared with a home warranty that can help deal the covered costs. Plus, it's easier to budget for emergency out-of-pocket costs when you know your home warranty can cover a portion of unexpected bills.
Getting the most value for your money
While the savings are clear, something has to go wrong for your warranty to earn its keep. If your air conditioning unit and refrigerator both decide to call it quits during the height of summer, you'll be exceedingly grateful for the financial assistance a home warranty brings. However, if there's a year when nothing breaks down, the savings may not feel as celebratory.
That's why it's key to buy a warranty at the right time. If your house is older, it's prime time for wear and tear to start taking its toll. On the other hand, newly built homes typically have fewer chances of breakdowns and may be covered by the builder for a certain period of time.
But regardless of the age of a home, some homeowners think it’s the peace of mind that’s worth the cost. For them, the reassurance of being prepared with a home warranty outweighs the anxiety of not having one in place.
To learn more about TotalHome Warranty by HomeServe and how these plans can help with the costs of covered appliance and home system repairs, click below.