How Much Money Can I Save with a Home Warranty?
After you’ve closed the deal on your new home, you may find yourself wondering if home warranty plans are worth the money. Well, the simple answer is yes, home warranty plans are definitely worth the investment. While a comprehensive home warranty plan may cost you around $60 a month, the benefits far outweigh the expense. When you consider that the average cost of repairing an appliance can exceed $500, and replacing it can run into the thousands, that extra monthly cost becomes a wise investment.
Costs of repairing or replacing appliances without a home warranty
To put things into perspective, let’s take a look at the average costs of repairing or replacing household appliances without the benefit of a home warranty plan:
Refrigerator or freezer: $200 to $330 for repairs, $430 to $10,600 for replacement
Oven or range: $100 to $430 for repairs, $410 to $7,500 for replacement
Dishwasher: $160 to $300 for repairs, $445 to $2,300 for replacement
Washing machine: $100 to $350 for repairs, $445 to $2,300 for replacement
Clothes dryer: $180 for repairs, $445 to $2,100 for replacement
Built-in microwave: $100 for repairs, $200 to $2,000 for replacement
Central air conditioning: $170 to $600 for repairs, $3,900 to $7,500 for replacement
Water heater: $220 to $995 for repairs, $820 to $1,595 for replacement
Garbage disposal: $250 for repairs, $150 to $950 for replacement
Let’s consider the cost of a home warranty as in comparison to the price tags above. For example, Porch’s Whole Home Warranty Plan costs $62 a month, with a service fee of $100 per service call, homeowners have the potential to save thousands of dollars each year on repair or replacement costs.
Home warranty savings and coverage options
The great thing about home warranty plans is that they can be customized to suit your specific needs. Some providers offer add-ons, which allow you to include additional appliances or components for an extra monthly fee ranging from $5 to $20. Alternatively, you may opt for a customized plan where you can select which appliances and systems you want to include. Remember that there is usually a service fee of $50 to $150 for each claim, and some providers may require monthly payments for a one-year plan, while others allow you to pay the entire annual amount upfront. If you choose to pay for a full year in advance, many warranty providers offer discounts to lessen the financial impact.
Home warranties offer extra savings for homeowners
Most home warranty providers offer various incentives for homeowners. Porch’s whole home warranty plan, for instance, gives homeowners access to handyman services for free. The network of vetted professionals is available to assist you with small repairs, TV mounting, dryer vent cleaning, and more. Adding even more convenience and peace of mind that home warranies have.
Home warranties benefit home buyers and sellers
You might wonder if a home warranty is worth it when selling a house. The answer is yes; it can be beneficial for both home buyers and sellers. Even when a house is on the market, appliances, and systems can still break down. By maintaining a home warranty plan during the selling process, homeowners can prevent unforeseen expenses resulting from a sudden appliance or system failure. This way, the cost they pay for repairs or replacements is significantly lower than paying out of pocket without coverage.
Home warranty plans are worth considering for homeowners who want financial protection against the costs of repairing or replacing household appliances and systems. The average cost of a home warranty plan is around $60 per month, but the potential savings in repair and replacement expenses can amount to thousands of dollars per year. By understanding the coverage details and choosing a plan that suits your specific needs, you can ensure comprehensive protection for your home.
It’s a wise investment that can protect your budget and provide reassurance during homeownership. So, when you ask yourself, “Should I get a home warranty?” the answer is clear: It’s a smart decision you won’t regret.
If you are a homeowner or are planning to buy a home, consider adding a home warranty to your to-do list. It’s a financial safety net that can shield you from unforeseen expenses related to your home’s systems and other components.
