Home warranties offer you many things, but do they save you money? Well, there is no guaranteed answer to this but there are many ways in which you can make sure it’s all worthwhile. Here is a rundown on what home warranties entail and how they can save you money, before moving onto how to search for the best deals (and what to be aware of!)
No need to pay for repairs
The most obvious gain from a home warranty plan is that if something goes wrong, you don’t need to pay the contractor to come and fix your appliance or home system. There is usually a service fee, though, often around $50 to $75. Nevertheless, if you find yourself with many breakdowns, you will likely receive more free repairs which is of greater value than your monthly home warranty premium. You’re one unlucky person if this is the case, and in isolation, free repairs a few times per year will not save you money. However, it isn’t in isolation – when paired with the other benefits below, we can begin to see the true value of home warranties.
No need to pay for replacements
Replacing a range oven cooker and other expensive appliances can set you back thousands of dollars. Whilst home warranties usually have a limit, the potential for saving here is much greater. If you find yourself in need of a replacement once or twice per year, this alone will likely save you more than the premium (which is usually around $500 per year, or less).
Perhaps the greatest benefit of home warranties is the time saving aspect. It is literally one hotline number, a centralized entity, that will cover you in anything that goes wrong with your water, heating, garbage disposal, A/C, appliances and so on. It’s not just time alone though, is it? As they say, time is money. When your washing machine breaks down and floods your kitchen, you may be forced to take the day off work because you can’t find a repairman fast enough to fix the issue. All the searching through phone books, phoning different repair companies and so on can cost you a day’s work.
No need to worry about false economy products
Without home warranty insurance, you are going to behave and spend much more differently. If your fridge looks a bit dodgy, it makes sense to save and buy a very high-quality, ergonomic product that promises to last you two decades. That is probably the smart thing to do, to save on repair costs from your current one or a cheap one if you skimp. When you have a home warranty coverage though, you needn’t fuss or worry about it. Just wait. Let it die out if it is going to. Whatever. Of course, you must maintain them properly to ensure you’re covered, but you will save a lot of money on buying high-end products that will last years. Just buy a cheap fridge – if it breaks, they’ll fix it. This alone can save you a great deal.
What to look for when browsing for a home warranty company
So, the first reflex we have when purchasing most products that all look relatively similar is to choose the cheapest option. This is a fine mindset when looking for screen protectors or exchanging your currency, but it doesn’t apply here.
The biggest thing that home insurance offers is peace of mind. This simply will not be the case if you are covered by a poorly rated, unreliable provider. You roughly get what you pay for (not always!) so if it sounds too good to be true, it probably is. Price isn’t the only indicator though, so what you need to do is figure out some bare essentials.
Make sure that the home warranty truly covers exactly what you need. Settling for 90% of your appliances isn’t a great idea, as it’ll be just your luck when the uncovered appliance breaks down. Similarly, don’t pay for what you don’t have. Many plans will cover items you do not have, so either try get your premium knocked down for this or turn to a company that offers bespoke packages, where you can pick and choose individual systems and appliances for as little as $3 per month each.
Paying a low premium is no good if the service fees are massive. Afterall, if you’re expecting potential breakdowns, you have to expect to pay that service fee a few times per year.
Find companies with the best customer service. Repairs and replacements come in the most unfortunate of times, so having 24/7 and responsive customer service is absolutely necessary.
Finding the best deals
To go about finding the companies that best fulfill the requirements above, you should make use of comparison websites. The experience of customers cannot be topped – no amount of analysis from the outside as valuable. Once you have narrowed down a list, with the above boxes checked, then you can choose the cheapest company based on premiums, service fee and coverage limit.