The Pros and Cons of Home Warranty Plans

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While home warranty plans can be extremely helpful to some homeowners, for others, these plans may not be worth the cost. If you’re considering purchasing a home warranty plan, you need to think through the benefits and drawbacks of different plans. By doing this, you’ll be able to decide whether or not a home warranty plan is a good decision for you financially and practically.

In your search for information on home warranty plans, ensure you’re using reliable sources of information. Many sites offer information outside of the home warranty company itself, giving you a holistic view of each plan. Be sure to read reviews as well, such as reviews on American Home Shield, a popular home warranty company.

To learn more about the pros and cons of home warranty plans, keep reading.

Pro: They offer quick and convenient fixes for your home

When something in your home breaks, home warranty plans are available to make repairs. With a simple request for repair, most home warranty companies will schedule a contractor to visit your home in a reasonable amount of time. This takes the work out of finding a separate contractor, scheduling an appointment, and waiting for them to fit you in.

Pro: You can have peace of mind

Knowing that you are covered in the event of something breaking is helpful for many homeowners. As owning a home comes with many stressors, having something break is one of the last things you want to worry about. With a home warranty plan under your belt, you’ll have peace of mind.

Pro: They can pay for themselves

You’ll typically pay $350 to $600 a year for a basic home warranty plan. If you have multiple repairs or replacements needed within a year, the cost of a home warranty plan can be less than the cost of repairing everything on your own. Because of this, home warranty plans can end up paying for themselves.

Con: There are fees

Home warranty plans usually charge a monthly or yearly cost to have the plan. On top of that, however, you’ll probably be charged for any service calls you make. A service call can cost around $50 to $75 per individual contractor sent.

Con: You can’t pick your own contractor

When you make a service call to a home warranty company, they’ll usually send out the most available contractor. Due to this, you aren’t able to make relationships with local contractors in the way you would without a home warranty company. Some homeowners prefer to stick with one trusted contractor.

Con: You may be paying for nothing

If nothing happens to break in your home for an extended period of time, that’s good. But, you’re still paying your home warranty company. This drawback may make some homeowners hesitant to purchase a home warranty plan — especially if they own a newer home with new appliances.

In order to decide whether or not you need to purchase a plan, you need to weigh these pros and cons based on your own circumstances. Don’t hesitate to gather quotes, read reviews, and learn more about the home warranty companies that cover your region before making any decisions. Just make sure you’re making informed decisions!

 

Disclaimer: This content does not necessarily represent the views of IWB.

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