Using Home Warranties to Guard against Financial Uncertainty

As a new homeowner, you have many things to be thankful for. For starters, you are no longer paying rent, or living with friends and family. You have your own piece of real estate, and that is truly incredible. Homeownership comes with many benefits and responsibilities. For starters, you will be required to maintain your property – upkeep, maintenance etc.

As a new homeowner, you can purchase a condominium, a single-family home, or a town home. Each dwelling is unique. Homeowners association fees typically cover the costs of gated communities, the exterior maintenance of your buildings, the yard and the aesthetics of the complex.

However, when it comes to the internal systems and appliances of your home, that’s an entirely different ballgame. Every homeowner is responsible for his/her systems and appliances. These include washers, microwaves, dryers, refrigerators, freezers, garbage disposal units, ACs, pool motors, garage door motors etc. As you can imagine, these expensive systems need to be covered by a home warranty or a manufacturer’s warranty.

Experts state that for every $100 spent on an appliance or a system, you can expect at least a year’s worth of usage. For an appliance that is nearing the end of its life term, it is probably a good idea to have home warranty coverage for repair or replacement. By contrast, appliances that are brand-new are typically covered by the manufacturer’s warranty. However, it’s equally important to read the fine print of a warranty before you discard home warranty coverage.

How Do Home Warranties Help You Overcome Financial Uncertainty?

Think about the costs of repair or replacement of systems and appliances in the absence of home warranty coverage. According to various authorities, the national average for installing an appliance is $191, with a typical range of $115 on the low end and $274 on the high-end. This figure is attributed to smart home appliances, washers, dryers, stoves, ovens, dishwashers, refrigerators, and microwaves. Home appliances cost significantly more than that. Consider the following:

  • A dryer can last between 8 years – 12 years and costs between $400 and $1,000
  • A dishwasher lasts between 8 years – 10 years and costs between $400 and $700
  • A washer can last between 8 years – 12 years and costs between $700 and $1,000
  • A refrigerator typically lasts between 6 – 15 years and costs between $900 and $8,000
  • A range/oven can last between 10 years – 15 years and costs between $650 and $2,000

As you can imagine, these costs can put a significant dent in your savings, in the absence of a home warranty plan. One of the leading home warranty providers is American Home Guard. This home warranty company has been operational for 4 years and it covers a wide range of appliances such as HVAC units, pools, spas, appliances and systems.

Costs of Home Warranty Coverage by American Home Guard

There are plans starting at $530 per year for the red/white plan, while the blue plan costs $600 per year. Among the many benefits of selecting this company for home warranty coverage are the following:

  • Fully comprehensive coverage
  • High customer satisfaction rates
  • A 30-day money back guarantee
  • Around-the-clock customer support

Coverage includes air-conditioning up to 5-ton capacity, but nonessential components such as stands, grills, air filters, and the like will not be covered by the plan. Heating systems are covered, including all components, modules and parts of the heating framework. Again, there is a 5-ton limit. All minor parts are not covered by the plans, which is standard across the home warranty industry.

For both systems, coverage is limited to $500 within the first 3 months of the contract and beyond that it increases to $2,000. Electrical systems are important, and many components of the electrical system will be covered by the home warranty plan including switches, breakers, outlets, wiring etc. Additional coverage is available for well pumps, limited roof leaks, plumbing/lighting, pool/spa equipment etc.  For the red plan and the white plan, the service call fee is $65 and the cost is $529.99. For the blue plan, the cost is $599.99, and the service call fee is $65.

 

 

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