A home protection warranty, also known as home protection plan is an annual service contract that covers the major home appliances or systems when they break down due to regular wear and tear. A home protection plan saves the home owners from paying expensive, out-of-pocket costs on repairs and replacements.
Is a home warranty plan worth it?
Since it’s not possible to predict when your systems or appliances will break down or stop working, a home warranty plan is absolutely worth it. This type of plan gives you the peace of mind that if a major home system or appliance breaks, you won’t have to spend hours on searching the expert technician to get your item fixed.
If you are planning to purchase a new home with new appliances and systems, you won’t need to consider buying a home protection warranty plan. The reason is simple- brand new home appliance or system always comes with the manufacturer’s warranty. A manufacturer warranty always covers appliance or system if they fail due to defective materials or faulty workmanship. Manufacturer’s warranty doesn’t cover items that break down due to regular wear and tear. It’s always good idea to invest in a home protection warranty plan once the manufacturer’s warranty expires.
It is always a good idea to purchase home warranty plan if:
- If you want to avoid the uncalled appliance or system repairing or replacement costs.
- If you own an old home
- If you are a first-time homebuyer and want a home protection plan for all of your appliances and systems
- If you are a home seller and attract the potential buyers
- If you are new to the area and don’t have any information about local technicians
Is a home protection plan worth the money?
Yes, you will have to pay an annual fee but the benefits always outweigh the repair costs. You can leverage the annual fee even by asking for one service call.
For example, the average repair cost of a water heater is $546. If you pay annual pay of $300 and service fee of $100, you still have $146 in your pocket by having a home protection warranty plan.
Benefits of home warranty plan:
1. home warranty plan gives you the piece of mind that you won’t have to pay for the entire repairing or replacement cost of the items that covered under the protection plan.
2. You can have the access to a network of experienced and fully skilled service providers in your area. It saves a considerable time that you need for locating a good service provider in your area.
3. The convenience or simplicity of having a single point of contact when you need a service on your appliance or system in your home.
The difference between a home warranty and home insurance:
A home warranty plan is different from a home insurance, though both policies protect your home but they cover different items. Unlike the home protection warranty plan, a home insurance plan is designed to protect you financially from catastrophic events like fire, flood or any other natural disasters.