When you buy a home these days, you get so many people asking you to buy services meant to better your living experience. Home insurance companies will send solicitation emails even before you move into your new home.
Your real estate agent may try to get you to buy a home warranty. If you are lucky, she will convince the seller to pay one year’s of home warranty services in the hopes that you purchase the home as quickly as possible.
If no one is willing to pay for home warranty services for you, you should probably think about them. Dishwashers and laundry machines cost in the upward of $120 for minor fixes. Refrigerators can be more expensive and fixing a leaking plumbing system can be a nightmare.
What Home Warranties Cover
Home warranties cover expensive appliances and plumbing systems. Everything from your AC to the water heater, heating systems, refrigerators and clothe washers can all be covered. Some companies also service electrical systems, stoves, and dishwashers.
The companies offer their services by plans so that you only pay for the appliances you use the most. A $25 plan on First American Home Warranty, for instance, doesn’t cover a sump pump or a whirlpool bath pump. For these appliances, you need a premium plan that cost $41.
Most home warranty companies also give you the option of paying extra costs for several units often not covered through plans. If you would like to receive services for your well pump and it’s not covered, you may be asked to pay $10 extra.
What they don’t cover
All appliances not included in the plans you pay for can’t be covered. Again, most companies don’t take care of all the units in your home. If you work with a service provider that doesn’t cover refrigerators, you’ll have to use your own money to fix your broken refrigerator.
In many cases, home warranties also refuse to service appliances if you never maintain them. That means if your laundry machine has some broken parts and looks old, your warranty company may deny you services.
So, why even pay for home warranties?
- Appliance Repairs are Expensive
Sure, a few unscrupulous companies will always find reasons to deny you services but genuine services may be worth the monthly costs. Imagine your dishwasher and laundry machine breaking down during the same period. The cost of repairing both appliances may be in the upwards of $400, emergency cash that may not always be readily available.
Home warranties aren’t always cheap though, otherwise, every homeowner would subscribe. While monthly plans can cost as low as $20, you are charged about $100 when you call the companies to talk about your problems. As such, it’s important to weigh your options appropriately before committing to a specific company.
HSA home warranty, for instance, charges you $480 annually and an extra $75 for service calls. You pay $75 extra to cover your water well pump and up to $150 for your swimming pool. By comparison, First American charges you $44 per month for all major appliances including electrical systems. In a year, you would have to pay $538, which is more expensive than HSA but covers more units.
- Quick Repairs
If you don’t have $200 to repair a broken air conditioner mid-month, you may have to tolerate two weeks of extremely cold temperatures at home. Warranties ensure that broken appliances are repaired immediately.
Again, not every company gives you the convenience of instant repairs for your broken appliances. Read through reviews of some companies and you will be shocked at how inconsiderate they can be. From services calls that are never picked up to staff showing up five days later, only the best companies are reliable and quick.
- Increases your Home Value
Buyers are always wary of buying homes with pre-installed appliances and units. You may tell them they will be saving by buying such a house but will still be scared about your units being faulty. A home warranty removes any doubts buyers may have about your appliances.
Home warranty companies work based on the contract signed at the beginning and not based on who owns the home. As such, when you sell your house, the buyers will be able to benefit from the services of a home warranty.
- Could Include Replacements for Appliances
Imagine a company replacing your $1,000 water heater free of charge. Most companies will look for reasons not to honor such promises but a few good home warranties are known to make appliance replacements. In most cases, they replace internal parts which although cheaper than buying new units can cost a few hundred dollars.
Make sure your home warranty has such a policy and online reviews prove they’ve done replacements in the past. You can also contact them to confirm whether they offer such services. However, keep in mind that companies willing to buy you a new appliance will always have more expensive plans.
- Available in Short Contracts
Home warranties don’t work for everyone, but the availability of one-month plans ensures you can try the services to see whether you would want them. If you commit to a company looks for ways to deny your claim for repairs, simply cancel the contract and move on to a different company.
There are no try periods in the home warranty business but there are offers that give you discounts on your first month. Take advantage of them to test customer support and the efficiency of a home warranty service during your first few weeks with them. If unsatisfied, try a different service.
Home warranties are becoming important considerations for new homeowners. Without them, some people simply won’t purchase your house. A basic home warranty service covers the most important appliances by way of offering repairs whenever they break down.
The services aren’t perfect, which is why some people would never consider them. But if you live check-to-check and can’t afford over $200 for repairs instantly, consider finding a good provider. Read their warranties and find reviews for their services online. Make sure you work with the best-rated companies.
Check out AFC Home Club reviews to see the best deals for home warranties