These days, more homeowners than ever are taking control of their families’ finances by taking out home warranties, also called home protection plans. These plans are designed to cover appliance and equipment failures, allowing homeowners to pay one monthly fee to avoid having to pay high prices for unexpected repairs. Anyone interested can find out the basics about residential home warranty pricing and plans below.
What Are Home Warranty Plans?
Home warranty plans are designed to protect major appliances and equipment. Unlike homeowners’ insurance, which kicks in only after a covered disaster damages a house and its contents, home protection plans cover repairs and unit replacements that become necessary as a result of ordinary wear and tear. These service contracts make it easy for homeowners to budget by allowing them to pay one monthly fee instead of having to save up for unpredictable emergencies.
The Types of Plans
Each home warranty provider offers different coverage options. In most cases, the cheapest plans cover only major kitchen appliances, while the most expensive pay for repairs to and replacements of everything from washers and dryers to electrical systems. Choosing the right plan is largely a matter of determining which appliances or equipment are already protected under manufacturers’ warranties, then finding a plan that covers the ones that aren’t.
Some of the leading home warranty plan providers allow their customers to customize standard plans. What that means is that they can add appliances or equipment to ensure that everything is covered without having to pay for anything they don’t need. That could mean adding coverage for a second refrigerator or a washer/dryer combo instead of taking out an entirely new plan to cover an attached garage that features amenities, for example.
Home Warranty Plan Pricing
Every home protection plan requires homeowners to pay a monthly fee. However, the pricing for home warranty plans varies depending on what company homeowners work with and the extent of the coverage they request. There are plenty of home warranty companies with competitive rates that also offer excellent customer service and exceptional contract terms and conditions, but some providers that charge unusually low monthly fees can only afford to do so because they cut corners elsewhere. Be careful about choosing a provider.
It’s important to note here that the monthly fee isn’t the only thing homeowners should worry about when it comes to pricing. The repair companies sent out by home warranty companies also charge service fees, which are paid by the homeowner. The amount of the service fee will be fixed and should be described in the warranty contract. That contract should also detail any additional fees, plus payout caps for the plan.
The Importance of Due Diligence
Homeowners shouldn’t just choose the first home warranty companies they find that offer reasonable rates. It’s important to perform some due diligence by asking questions about what’s covered and what’s not, reading through the service contract, and ensuring that there won’t be any unpleasant surprises. It also helps to work with a company that has been in business for long enough to establish a reputation for good customer service.