Consider buying a home warranty plan to save money on home maintenance and repair. Homeowners’ insurance, property taxes, and mortgage fees can be expensive. Buying a home warranty plan can reduce these costs and provide peace of mind. However, it would help if you understood the limitations of home warranty plans and what you will get for the price.
Cost of a Home Warranty
Several factors determine the cost of a home warranty. Premiums vary, and there are many different home warranty companies. The monthly premium is typically about $150 for most of the top home warranty companies in Texas. There are also deductibles, which are assessed when a technician arrives at your home to perform repairs or diagnose a problem. Depending on the provider and the plan, those costs are typically around $75 or $100. Add-ons, such as coverage for a pool or spa, may cost an extra $2-$35 a month.
Typically, a home warranty plan covers major appliances and systems. However, certain things, such as guest units, sump pumps, or spare refrigerators, may not be covered. Additional services, such as pest control, can be purchased separately for an additional fee. While prices vary widely, home warranty plans can provide peace of mind and protect you from expensive repairs.
Limitations of Coverage
When buying a home warranty contract, know exactly what the plan covers. You want to avoid paying for something you won’t need. For example, knowing what your plan covers is essential if you are a homeowner with a new roof or furnace.
Limitations on coverage vary from home warranty provider to provider. Some only cover parts of the covered device. Others need to cover the outer sheets of your appliances. Moreover, some home warranty companies charge a service call fee ranging from $60 to $100. It is a good idea to read the service contract carefully to see if your home warranty covers the parts of your appliances and what it won’t.
Cost of a Home Warranty Plan
A home warranty can save you money on many household repairs. For example, imagine you have a dishwasher that broke down in January and a faulty HVAC system in May. The cost to repair each of those items would be $700. You have already paid $500 in annual home warranty fees; the other $100 will go toward the repair costs. That means you saved $700 in the plan’s first year.
Some home warranty companies will offer promotions for new users. Some will give you a free month or $50 off your first month. Some will also let you cancel the plan without any obligations. Reading the fine print and choosing the plan that suits your needs is essential.
Savings from a Home Warranty Plan
If you’re worried about the cost of home repairs, a home warranty plan can save you hundreds of dollars every year. Premiums for home warranties typically range from $20 to $75 per month, and service calls cost between $75 and $125, depending on the plan. You could spend thousands of dollars without a home warranty on major repairs. Plus, you can earn interest on your premium money and put it toward an emergency fund.
To get the best value for your money, choose a home warranty plan that includes the service providers you need most. The home warranty business is a competitive one. Many providers offer online enrollment and enable you to choose and activate policies without speaking to a live agent. You can also get a cheaper plan by choosing a “build your own” plan and selecting the specific systems and appliances you expect to need service in the future.
Cost of an HSA Home Warranty
HSA Home Warranty is a home insurance plan that covers various home systems and appliances. The cost varies by location and type of home. For a single-family dwelling, the premiums can range from $515 to $635 per year. It is also possible to add additional coverage items to the plan. However, these are charged separately and are not included in the basic plan.
Some extras under the HSA home warranty program include rekeying services (up to 6 keyholes for exterior doors) and pre-season tune-ups for heating and cooling systems. Another benefit is the electronics plan, which protects new and existing items. Another bonus is the trickle-down discounts through a discounts program worksheet.