Home warranties are one of the solutions that can help you in this situation. However, not all of them are trustworthy and so you will need to choose a plan with great care. We suggest you search home warranty information on House Method to help you select right warranty.
How Having a Home Warranty Plan Can Help You
To understand the value of a good home warranty plan you should consider the following statistics:
- The average cost of appliance repair today is $140-238.
But these numbers mean very little because you’ll rarely pay the “average” bill. Unless the issue is truly minor, be prepared for the cost of repairs to be higher than you’d expect.
For example, fixing a refrigerator-freezer combo can cost you upwards of $200-400, and HVAC repair will end up costing about $500.
- Over 60% of Americans cannot pay $1,000 for an emergency.
The majority of these people have no savings at all or only a negligible sum which might not be able to cover a big repair, even for one major appliance.
- The cost of house and appliance maintenance and upkeep increases each and every year.
This means that even if you have an emergency repair fund, there’s a risk that it won’t be enough if you based it on the previous year’s requirements.
- The majority of modern home appliances have a maximum lifespan of twelve years.
The risk of them breaking down increases significantly with every passing year. But repairs become more complicated and expensive because the models are removed from production during this time, and so parts are limited.
You should bear all these facts in mind when shopping for appliances, especially if you plan on buying them secondhand. This option has many advantages, but also runs a big risk of acquiring a device which will need to be repaired or replaced in the short term. It might also be more difficult to find home warranty coverage for pre-owned appliances.
While considering these numbers and considering how such a big emergency expense will impact upon your budget, you should also remember that ignoring problems isn’t an option. If you don’t have an emergency fund, you will have no option but to go into debt because some appliances and home systems need to be repaired right away. Otherwise you might all freeze or become sick, or else the problem may cause additional damage. For example, a leaking boiler can cause water damage and mold.
Finally, you should be mindful of the fact that you cannot know how many of your appliances will break down during the year. This makes it even harder to plan your budget and prepare for emergencies.
A home warranty plan can help you deal with this problem by covering all or part of the appliance and home system repair cost. The exact amount and other terms will vary depending upon the provider and the plan.
To Benefit from a Home Warranty: Choose a Company That Can Be Trusted
While home warranty plans can help in some cases, they can at other times be a waste of money. It all really depends on the reliability of the provider. There are about 180 home warranty companies in the US today, but ten of them command over 80% of the market.
AHS is the biggest provider, but it has been implicated in some nasty scandals. It might therefore be best to consider the next best option, which is First American Home Warranty.
FirstAM offers both home warranties and titles insurances, which along with its status as the industry veteran demonstrates that this company is very serious and reliable. With a wide range of available services and a reputation carefully built over many years, this provider is less likely to renege on its obligations or to try to avoid payment. This is probably why it is the second biggest home warranty provider in America today.
This good reputation, serious services on offer, good standing with the Better Business Bureau and clear and reasonable terms and conditions are what you should be looking for in a home warranty provider.
Pay attention also to the contractors which the provider works with. One of the biggest benefits of having a home warranty plan is that the provider is your single point of contact for all repairs of the covered items. This means you don’t have to research how to find a reliable HVAC repair contractor and then to compare all the options in your area.
Instead, you give a call to the home warranty company and they send a suitable professional round to your door. This will work the same for all covered home systems and appliances, which saves you a lot of time and prevents a few headaches.
Home warranty providers have established networks of contractors whom they work with, and you can learn about them through reviews on independent review platforms as well as customer forums like Yelp. Look for information on how efficiently the contractors work and for how long the repair lasts.
other valuable tips:
But be aware that sometimes repeat breakdowns are unavoidable. For example, icemakers built into fridges are known to leak quite often. It’s an easy enough fix, but this issue cannot usually be resolved permanently. However, a home warranty company won’t pay for a fridge replacement as it is very expensive. It is cheaper for them to pay a contractor for a minor fix every couple of months.
This kind of approach can be expected even from the best home warranty providers. It’s because this is business for them and everyone wants to make as much money as they can.
Wanting to make a profit isn’t a thing you should judge a company harshly for. However, its reputation in delivering on its promises and obligations is. Big and experienced businesses, like First American, Old Republic, and 2-10 spent decades building their reputations. They won’t run the risk of not fulfilling their contractual obligations, which would see those reputations ruined. Therefore, it is usually a safe bet to seek coverage from industry veterans. Even then, take your time to study reviews and customer testimonials. These will give you a better idea of how trustworthy the company is today.
Image credit: appliance repair costs by Pixabay
end of post … please share it!
Kitchen Racks & Hooks
For Pantry & Cabinet