Whether you’re in the market to buy a house or you already own one, there’s something you should never go without, a home warranty plan. A common misconception and the number one reason so many people don’t have this kind of protection is they believe it’s too expensive. Even the cheapest home warranty is better than no warranty at all. Besides, several top-rated companies have excellent plans that cost very little.
What’s a Home Warranty?
Before outlining five specific ways a warranty can save you money, here’s a brief introduction as to what it is. This type of plan gives you extra protection if something associated with your home breaks or needs repaired or replaced. A few examples include an air conditioning unit, washing machine, furnace, refrigerator, garbage disposal, or a plumber doing work on a backed-up drain.
If you opt for one of the cheapest home warranties, you’ll likely pay around $100 per service call. For instance, if your sewer pipe overflows in your basement or cellar, you’d put in a claim. From there, the warranty company would provide you with a list of certified plumbers you can use. You pay for the service call, and the warranty company picks up the rest of the tab.
Depending on which warranty company you choose, this type of plan generally runs about $500 a year. Considering all the benefits, that’s a drop in the bucket.
Five Key Savings Benefits
To see just how valuable the cheapest home warranty is, consider these five money-saving factors.
1. No Homeowner’s Insurance Claim
You don’t have to file a claim with your homeowner’s insurance company. That means you don’t have to pay the deductible, which could range between $500 to $2,000, or even more. For another thing, filing a homeowner’s insurance claim could result in higher premiums or even policy cancellation.
2. No Costly Repairs
Say the compressor on your refrigerator goes out. The service call plus parts could get expensive. Again, rather than pay an excessive amount of money for something like this, you’d only pay for the service call. As mentioned, that’s often only $100.
However, you can find even lower prices. As an example, Select Home Warranty offers one of the cheapest warranties available. For this, you’d only pay $75. Even the annual premium is low. You can go with the Basic plan for only $36 a month or the Platinum Care plan for $42.
3. It Includes Older Appliances
The cheapest home warranty plan covers all appliances, regardless of age. For example, if you have an air conditioning unit that’s 10 years old and it suddenly quits, you pay only the service fee. If the repair company can’t fix the problem, then you can have an entirely new system installed at no cost whatsoever. That right there is a savings of anywhere from $2,500 to $5,000, sometimes higher.
4. Property Value Increase
Here’s something extraordinary to consider. Even if you choose one of the cheapest home warranty plans, there’s a good chance the company will transfer it to the new owner if you decide to sell your house. For a potential buyer on the fence between your property and another, that could be enough to sway them.
5. It Covers Expensive Systems
Today, a lot of people have smart homes. That means having high-tech systems installed. You know how it is. The minute something falls outside of the manufacturer’s warranty, it breaks. Well, with a home warranty, you don’t have to worry about a thing.
Regardless if you have a security system, an innovative technology system that operates various things within the home, an expensive sound system, or something else, it’s all covered. As stated, all you do is pay the annual fee and the cost of the service call. That’s it.
The Bottom Line
If you like saving money and not hassling when things break, this type of plan is perfect. With so many things that can go wrong, you need both protection and peace of mind. For that, consider one of the cheapest home warranty plans available, and you’re all set.
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