You take on a huge financial burden when you become a homeowner. After the down payment, you may have a mortgage, property taxes, homeowners insurance, and perhaps HOA fees. And that’s just what you might pay to “have” the house. Then you need to furnish it, maintain it, improve it, and maybe upgrade it. That’s just what you might pay to live in the house. So over a lifetime, it’s no wonder that owning a home is one of the biggest investments you can make.
Your Home Warranty Safety Net
If you’re a new homeowner, the last paragraph may just make your wallet swoon. You may think, how can I save any money after I pay for all of those things? One way is to use your home warranty. It may not be the first thing you think of as a money-saver, but as a new homeowner, repairing or replacing the heating or cooling system, electrical or plumbing systems, or any of those vital appliances you use every day can have an immediate and serious impact on your wallet when one of them breaks down. Except when you have a home warranty.
Having a home warranty resembles a security net for your wallet. It can protect you from paying the often costly repair or replacement bills when covered home systems and appliances fail.
Avoiding Costly Repair and Replacement Bills
Imagine this potential real-life scenario as an example of how a home warranty can help first-time homeowners save money:
You close on a new home in early spring. You move in a month later after doing some basic home improvements like fresh coats of paint on the walls and new carpeting in the bedrooms. You’re ready to invite your friends and family over for a housewarming. As you’re preparing some make-ahead hors d’oeuvres for your guests, you turn on the oven to preheat, and nothing happens.
Will you have to cancel the party just so you have the funds you need to get your oven fixed, or worse, from your wallet’s perspective, find out you have to buy a new oven?
Without a home warranty, the typical repair or replacement cost of a covered item such as an oven can be as much as $1,246 to repair and as much as $3,413 to replace.*
With a home warranty, you don’t have to spend that kind of money to repair or replace your broken oven.
Take a look at this Budget Protection table to review the actual repair and replacement costs have paid to fix or replace covered home systems and appliances for our home warranty customers.
What you might pay in out-of-pocket costs with a home warranty when compared to what you would pay without a home warranty can turn into real savings for you.