A house warranty for sellers is similar to a home warranty for buyers in that it benefits both parties during and after the transaction. Your insurance company covers some swimming pool pumps and garage door openers. Home warranty companies will send a contractor to your home to fix any problems. If it’s not covered under your plan, you will need to pay for the repair. This article will help you decide if buying home warranty is really worth it.
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Cost of a Home Warranty
A home warranty costs a monthly premium, plus a service call fee, that may range anywhere from $60 to $100. Depending on the provider and the type of problem, homeowners could spend thousands of dollars on major repairs. However, if you don’t save for emergencies, home warranties like a First American Home Warranty could pay for itself in the long run. It will cover your major appliances and systems and unexpected damage. The service call fee varies, but you should always opt for the lowest-cost plan.
A home warranty will cover certain appliances and systems, allowing you to avoid the cost of replacements when they break. The premium will increase with many appliances and systems covered. The monthly premium will also include a deductible, which is a small percentage of the claim amount if you need to make a claim. You can add extra coverage, such as a garage, later.
Exclusions in a Home Warranty Plan
Before purchasing a home warranty plan, make sure you know the exclusions. The plan’s fine print will detail which appliances and systems are excluded from the coverage. For example, while a refrigerator ice-maker is unlikely to be covered under a home warranty plan, you may want to check the exclusions in the fine print to ensure you have the necessary coverage. Many home warranty plans don’t cover these costly items and limit their scope to the cost of service calls.
Home warranty plans can be very beneficial for new homeowners. They are designed to protect your investment and help you cover unexpected costs. However, you should know precisely what your home warranty plan covers to avoid surprises later.
Annual Renewal
If you are unsure if you should renew your home warranty, consider these options: pay for it in one lump sum or make simple monthly payments. The monthly payments will sign you up for continuous coverage, meaning you can change your policy each year, and your coverage will not end abruptly if you don’t pay it in time. If you’ve been pleased with the service provided by your home warranty company, you may decide to renew it annually.
Regardless of the coverage, your home warranty policy contract should include upgrades to existing items and optional items that the standard agreement may not cover. Whether you opt for the annual renewal or not depends on your needs and budget. Annual renewals may be more affordable than the yearly premiums, but you must know what they cover. You may regret having bought the warranty in the first place and spending that money instead on emergency repairs.
Expensive Plans
The cost of a home warranty plan varies. The average bill can be in the range of $45 to $55 per month, although the cost of coverage can be higher if you live in a bigger city. Service call fees can be anywhere from $60 to $85 per visit. Some plans will cover preexisting issues. If you’re unsure, read the policy’s documentation carefully. The advantages and disadvantages of home warranty plans vary depending on your location.
