Frugality and common sense go hand-in-hand. If you are a homeowner, it behooves you to consider your options with home warranty companies. There are many benefits to signing up for a comprehensive and affordable home warranty service. The recent growth in home warranty popularity is notable.

Homeowners are increasingly aware of the financial risks they run by not covering the contents of their home against damage, and everyday wear and tear. The fact of the matter is that it is extremely expensive to repair and replace appliances, gadgets, and devices inside your home. When real estate transactions are concluded, home warranties feature prominently. Believe it or not, when buyers are provided with protection against loss, damage or wear and tear of the appliances in the home, houses and apartments sell a lot quicker. Provided the right home warranty coverage is offered at the right price, the long-term benefits are well worth the cost.

How do home warranties work?

Home warranty companies provide homeowners with policies that cover things like spray sprinklers, spas, Jacuzzis, dishwashers, HVAC, insinkerators, alarms, washing machines and the like. The type of coverage you get is often associated with the price you pay. The greater your coverage and optional extras, the higher the home warranty prices. But there are many important factors to bear in mind when choosing a home warranty provider. For example, credibility is paramount. The trust factor weighs heavily on your decision to choose one home warranty over another.

It’s important to read client reviews online, consider word-of-mouth assessments, and follow reports of home warranty companies in newspapers and the media. Other important determinants of choosing one home warranty company over another include the terms and conditions of each policy, and the pricing. Anyone considering saving money in the long term will do well to read a detailed overview at ReviewHomeWarranties. It is extremely time-consuming to gauge the services, costs, and reliability of all market players in the home warranty business. For this reason, aggregator services are your best bet when comparing one company with another.

Home warranties cost between $300 and $500 per annum on average. Once the policyholder pays for coverage, they will be issued with a home warranty policy. This policy details everything that the home warranty company is prepared to repair/replace in the home. Typically, this covers systems and certain appliances. If one of the items stops functioning, or breaks, the policyholder/homeowner will contact the home warranty company and file a claim. Next, the home warranty company will dispatch a service provider to the homeowner.

Certain home warranty companies allow the homeowner to contact a contracted professional at their leisure. The service fee for each repair ranges from $50 – $100, and depending on the severity of the problem, a new appliance, device or mechanical part may be ordered. Otherwise, the contracted service provider will repair the appliance on the premises. In terms of payment, the homeowner may pay upfront for all the repairs and get reimbursed by the home warranty company. It is important to read the fine print and the coverage of each home warranty plan that you sign up for.

How can home warranties help you save money?

One of the things about home ownership that is different to rentals is that refrigerators, washing machines, dishwashers, garbage disposal units, hot tubs, Jacuzzis, spas, garage doors and other appliances and systems are not replaced by the landlord. When these things go on the blink, it is incumbent upon the homeowner to repair or replace them. In terms of frugality, it is possible to save $300 – $500 per year by not having a home warranty, but the cost of just one item that stops working can exceed that. Consider that washing machines and refrigerators routinely cost upwards of $300, so it pays to be smart and frugal by opting for a home warranty.

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