When you buy a home, its keeping and care become a major priority. One best way to ensure that its systems and appliances are taken care of is by investing in a home protection warranty plan. Home warranties are the key to easy maintenance of your home systems and appliances. If you have been planning forward to buying a home protection plan, you should read this article first.
What is a home warranty?
One thing that you must note that home warranty is not a home insurance. These two are completely different entities.
A home insurance is meant to protect you financially in the unforeseen events like fire or windstorm.
On the other hand, a home protection plan protects your home’s major elements as they age. It’s there to save your money if any of your appliances stops working or malfunctions.
How a home warranty plan works?
A home protection plan works just like the way an insurance policy works. Each year you need to pay an annual fee and you can be covered under a warranty. The home protection warranty plans can range from a few hundred dollars to a thousand dollar. Usually, homes of under 5000 square feet in size are covered under the regular home protection plan in the US market. Above that size, home protection warranty providers charge extra money.
Each time you use a home protection plan, you need to pay a deductible. The exact amount of deductible vary according to your home protection plan. Usually, it ranges between $50-$125.
In exchange, the warranty company will either repair the appliance or replace it.
The Advantages of Home Protection Plan:
The biggest benefit of having a home warranty plan is the peace of mind. If you somehow break the appliance or it malfunctions, you know that a professional come out and fix it or replace it. This is the reason why a home protection plan could be a great choice for the homeowners who are not handy. It can be also highly beneficial for new homeowners or people who are not much familiar with the home systems. Additionally, a home protection plan can be a money saving way for the budget-friendly people. With a home protection plan, you won’t have to worry about the unanticipated costs as you know what premium you are going to pay upfront and what the deductibles are. It makes anticipation game easier for you.
The Cons of A Home Protection Plan:
The obvious downside of a home warranty plan is that it doesn’t cover everything. You will need to read your specific terms thoroughly in order to know about the exclusions. A home protection plan doesn’t cover items that have not been properly maintained.
Making A Perfect Decision:
A home protection plan can be a perfect solution to a home owner’s maintenance concerns. Ultimately, it’s your decision whether you should or shouldn’t go for a home protection plan. Make sure you do enough research before making the investment in a home protection plan.