Home warranty plans can offer protection against the unexpected cost of repairing or replacing items in your home that break unexpectedly, like your appliances or heating system. But what are these plans exactly? And how much do they cost? This article will answer all of your questions about the cost of a home warranty plan so you can make an informed decision before signing up.
Home Warranties
The average cost of a home warranty plan is about $500, but it’s completely dependent on where you live. A home warranty is less than an insurance policy, which ensures your home for its entire value, and more akin to maintenance in that it only covers certain elements—think appliances and electrical systems—of your house. If you ever have any problems with those systems or something breaks that isn’t covered by your warranty (you didn’t fix it right away), you could be on the hook for hefty costs.
When Does A Home Warranty Make Sense?
What is a cost of a home warranty plan, and when should you invest in one? In order to determine if you should purchase a home warranty, you must first understand what a home warranty actually is. When purchasing or renting any major item for your home, it’s always best to do thorough research beforehand; and that goes double for protection plans like an HVAC or plumbing service plan or an extended repair contract from your mortgage company.
How Much Do They Cost?
The cost of a home warranty can vary depending on your area, but most plans offer some type of coverage for labor costs and parts. Coverage is usually based on factors like square footage or age. If you’re working with an independent contractor to install flooring, faucets or electrical outlets, your home warranty could cover labor to replace something they break while they’re working. The cost depends on what you buy in terms of coverage—but it’s typically an additional few hundred dollars per year. A new refrigerator runs about $3,000 these days—so if you were buying one and needed to get someone out there immediately because it wasn’t cooling, that would be worth it for peace of mind!
Tips For Getting The Best Deal On A Home Warranty
If you’re moving into a new home, you’ll want to make sure that any maintenance and repair issues are covered in case something unexpected happens. A cost home warranty plan is an affordable way to give yourself peace of mind when buying or selling your home. By paying a small monthly fee for protection on your appliances, systems and plumbing, you can rest easy knowing that should an issue arise, it will be taken care of quickly.
Conclusion
The cost of a home warranty plan can be roughly calculated by taking into account your existing or potential repair costs. Repairs are inevitable—though you can reduce them with regular maintenance and upkeep, nothing is guaranteed. The cost of home warranties ranges from $35 to $4,000, depending on company and location. The most expensive ones are usually for new construction homes that have never been lived in before, which makes sense since they haven’t been exposed to wear and tear. However, it’s still possible to get a good deal on an extended warranty if you know where to look—or if you’re willing to do some research yourself, then hit up Google.