So, what exactly is a home warranty?
A home warranty is a service agreement that provides financial compensation for mechanical failures that result from routine use of your home and the items in your home (HVAC, Dishwasher, Water heater, Etc). Typically, home warranties range in price depending on the amount of coverage desired. The most affordable plan is generally around $600 and can be as much as around $1,300 for a year and is renewable. Here is an example of a Home Protection Plan.
New construction home warranties are available to homeowners as well. After the first year, the builder’s warranty is expired, and the homeowner becomes 100% responsible for the wear and tear of a home. In the past couple years, homeowners have been working from home. Homeowners now spend more time opening the refrigerator, utilizing the stove, using their plumbing and heating items up in the microwave. Being home more often even causes homeowners to adjust their comfortable temp levels with their heating and cooling systems more than before. – all of which utilize electricity or gas and wears out the units faster. These are all items that fall under a home warranty plan!
I often compare a home to the human body. The skeletal bone frame is framework of a home to give it shape and size. The veins and arteries function as the water supply pipes, the electrical is the brain telling to connect light and power to generate the other components. The ductwork is the lungs of a body while the HVAC system reflects our sweat glands. The door is the mouth and the appliances process as our organs. All are important the human body as are the components in a home to keep it habitable.
When we reflect our mindset to that comparison, we realize how important it is to protect our budget when items fail because they are unpredictable, unavoidable, and present unknown costs until the diagnosis is received. When you provide yourself a home warranty you are giving yourself many advantages:
- Peace of mind
- Budget protection
- Time Savings
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