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Owning a home takes a lot of work. It requires time and a financial commitment from the day you move in. There is an almost constant need for maintenance and upkeep projects if you want to keep your home comfortable, secure, and looking nice. Some items in your home are largely for convenience, though others are essential to keep you safe and provide the necessities of life.
Inevitably, you will face problems at home where things will break down and stop working. This can be frustrating and costly. If these issues occur during a time when your budget is already stretched, the prospects of fixing or replacing something in the house can be overwhelming, if not impossible.
The good news is that help is available. There is a way to reduce or even eliminate expensive home repairs or installations of new appliances or systems. A home appliance insurance by American Home Shield provides peace of mind and a financial boost during a time of need. If you are not familiar with how a home warranty works or the benefits it provides, it is helpful to learn more about this coverage.
An Overview
A home warranty is an agreement you can make with a warranty company in exchange for service for qualified items. You will pay a monthly or annual premium, and the company will send a certified technician to your home to diagnose any issue that arises and provide the required repairs. If the issues you have encountered fall into the parameters of your warranty, you will not have to pay anything out of pocket except for a service call fee.
A home warranty is different than homeowner’s insurance. Your insurance policy protects your home in the event of a disaster or catastrophe such as a fire, lightning strike, wind storm, broken pipe, or theft. A home warranty takes effect when an appliance or system breaks down or stops working properly due to regular wear and tear. The plan will also repair or replace these items if they unexpectedly or suddenly break.
More Important Details
Home warranties do have some limitations that you should be aware of. A plan will have an annual coverage limit per item that will cover up to a certain dollar amount for a repair or replacement. This total can be anywhere from $500 to $2,000, depending on the plan you choose. Also, the warranty is invalid if an item breaks down because of misuse or if you deliberately cause the damage. You must also perform routine maintenance on these items for the warranty to be effective.
Your warranty will cover kitchen appliances such as your refrigerator, stove, oven, dishwasher, and garbage disposal. It also applies to systems such as the HVAC, electrical, and plumbing systems and components in your home. The warranty will cover the sprinkling system, roof, and swimming pool. It does not cover small appliances and structural renovations you make, other than putting on a new roof when your old one wears out.
The Costs
As with homeowner’s insurance, a home warranty requires that you pay a monthly or annual premium. It’s important to shop around for a plan that makes sense for your budget and needs. Warranties can be anywhere from $300 to $700 a year. The plans typically last for one year, but you can renew your plan once it expires or anytime afterward.
Looking at Repair and Replacement Costs
Some people may shy away from buying a home warranty because of the financial commitment. But a closer look will show you just how much you can save by purchasing a plan. The total costs of a warranty can be a fraction of what you would pay just to install one new appliance or home system.
Appliance repairs can be steep, even for moderate issues. Replacing parts and paying for labor on a kitchen appliance can run you a couple of hundred dollars. Fixing the heating and cooling in your home might approach or exceed $1,000. If you need to replace an appliance or system, you could be looking at a couple of thousand dollars or more to get a new one up and running.
Coming to Your Rescue
If you are short on cash, the thought of having to meet these financial demands can be stressful and hopeless. A home warranty enables you to repair or replace these essential items without putting yourself in a difficult or impossible situation. Instead of paying hundreds or thousands of dollars, you only have to pay the yearly premium and a service call fee.
If you are worried about how you are going to afford to pay for home repairs, consider buying a home warranty. By paying a modest fee for service, you can avoid crippling financial obligations that would otherwise ruin your budget. It is easy to see how a home warranty is a good investment for your appliances and home systems.