Should One Buy an Annual Home Warranty? | Better HouseKeeper

Many people confuse a home warranty with a home insurance policy. That is not the case!

While home insurance can cover losses, destruction, theft, or disasters, a home warranty covers repairing and replacing appliances and home systems. However, a good home warranty service can help in saving a lot of money. By seeing the home warranty company reviews, it is possible to choose a good home warranty service.

How Much Does Home Warranties Cost and What Options are Available?

Usually, the cost of a home warranty can be as low as 220 dollars to as high as 1700 dollars. With more coverage for home systems, such as plumbing, electrical, heating, and air conditioning systems, the prices go up. Also, for covering more and more appliances, the prices are higher as well. Apart from the commitment fee, there are service charges as well. Whenever a technician or supervisor comes to visit, a fee of 60 dollars to 100 dollars needs to be paid. However, this is not a bad deal, as a system or appliance which is covered can get repaired with this fee only, no matter the actual expense.

Without a home warranty, a household can pay around 2000 dollars to 10,000 dollars more on average household repairs and expenses. Committing to good service is, therefore, recommended. A home warranty service can charge both monthly and annually. An annual home warranty is recommended, reducing the net cost on the full term of commitment. Yearly charges are usually less as compared to the 12 month total of monthly charges.

Average Costs of Repairing Home Systems and Appliances

According to surveys, an average household spends around 200 dollars on appliances, 1200 dollars on water heaters, 8000 dollars on a gas furnace, and 10,000 dollars on central air conditioners for repairing. Having an annual home warranty can reduce this expense significantly, as you will only need to pay the annual charge and the service charge. People may point out what if they do not have any problem in their house? In such cases, paying the home warranty charge is indeed extra. However, no one can say whether an appliance will break down or not. With a home warranty, you will at least be at peace of mind.

When is an Annual Home Warranty Necessary?

For some people, an annual home warranty should be a must-have. This includes buying an old home or realizing that the household appliances may not run for long after inspection. In such cases, getting an annual home warranty is highly recommended, as it will cover the repair charges or replacement costs of the home systems and appliances. In such cases, a home warranty should only be considered after looking at the home warranty company reviews. Also, the terms and conditions of the service should be carefully evaluated.

When is an Annual Home Warranty Optional?

If a house is newly built, the builder usually provides a warranty of workmanship and materials. These include cooling systems, plumbing, and heating systems as well, for quite an extended period. Getting an annual home warranty in such cases will not benefit the owner. Also, for some home appliances, when they are newly bought, they come with a manufacturer’s warranty. If the home appliances are still in that warranty period, paying extra for covering them in a home warranty isn’t necessary.

To Conclude

Consider all conditions before committing to an annual home warranty service. Be sure to check the home warranty company reviews to get a good idea about their services. Please review their terms and conditions, and understand their coverage policies. This way, you will avoid paying extra unnecessary premiums.