Homeownership — it’s a dream come true, a goal that many people scrimp and save towards for years.
But the costs don’t end with the down payment, or even with the monthly mortgage payments.
No, owning your own home comes with a surprising array of hidden expenses.
Take the costs of maintaining, repairing, and upgrading your home and its systems and appliances.
Home maintenance costs can average two to four percent of your home’s value each year, and that can easily add up to thousands more out of pocket — yearly — just to keep your home in good shape and its systems and appliances in good working order.
Fortunately, there’s a way to defray some of those costs and fit home repairs and maintenance more comfortably into your budget — with a home warranty.
1) Protect Your Budget from the Cost of Home Repairs
Budget protection is one of the biggest benefits of home warranties.
Unlike homeowners insurance, which protects your home’s structure against catastrophic damage, a home warranty protects your home’s major appliances and systems — like electrical, plumbing, and HVAC — from unexpected failures due to wear and tear.
Home warranties are easier for most homeowners to fit into their budgets because the monthly or yearly plan costs are a known quantity.
You don’t know when something will next break down in your home, what it will be, or how much it will cost to get it fixed or replaced.
Your next home repair could be a couple hundred bucks, or it could be thousands.
But you know how much your home warranty plan will cost, and you can fit that number into your budget.
When a covered appliance or home system breaks down due to age or normal wear and tear, your provider will cover much or all of the cost of repairing or replacing it.
It takes a lot of the guesswork and worry out of planning for unexpected home repairs.
2) Make Finding Contractors Easier
Aside from coming up with the money to pay for them, finding contractors has got to be the hardest part of arranging for a home repair.
Where do you find the best contractors in your area?
Should you rely on online reviews to help you make the choice?
And then there’s interviewing prospects, getting quotes, checking licenses, and all the rest — finding a new contractor can be a long, drawn-out process that will get you ripped off badly if you don’t do it right.
Home warranty providers have already done all the footwork, so you don’t have to worry about finding a contractor yourself.
Just make your service request with your service provider and they’ll send out someone from a local company that they already have a relationship with.
Most providers offer customer service over the phone, and many, like AHS.com, also offer online member portals where you can request service and keep track of your completed and pending repairs.
3) Plan for Out-of-Pocket Home Maintenance and Repair Costs
When you have a home warranty, you’ll know how much your plan limits and deductibles are, so you’ll know how much you might possibly need to cover out of your own pocket if something breaks down.
That can help you set savings goals for home maintenance and repair costs, and fit those expenses into your monthly budget.
4) Get Discounts on Home Services, Like HVAC Tune-Up
A home warranty isn’t just for fixing things when they break.
Just like your doctor encourages preventive care to keep you from needing more serious intervention for a preventable illness, home warranty companies encourage their members to prevent home breakdowns with regular maintenance.
They do this by offering discounts on home services, like HVAC tune-up, that can prevent the most expensive breakdowns.
They also often offer guidance to help homeowners take better care of their homes, like advice on developing a home maintenance checklist or how-tos for important home maintenance chores, like cleaning your gutters or flushing your water heater.
5) Protect Your Older Home Systems and Appliances
If your home itself is in good shape but you have older home systems and appliances, a home warranty is a good idea.
Nothing lasts forever, and a home warranty can help you offset the cost of repairing or even replacing older appliances and home systems.
Many plans offer members discounts on new appliance purchases, delivery, and installation.
If there’s any chance that you may suffer multiple appliance or systems breakdowns in the same year, a home warranty can help you manage the cost of multiple appliance replacement or even frequent breakdowns.
Nothing beats the sense of freedom and stability that owning your own home can bring — especially when you have a home warranty to help you manage maintenance costs.