You’ll learn about the costs, service call fees, and transferability here. You’ll gain peace of mind. However, home warranties aren’t suitable for everyone. Weigh the pros and cons carefully. Find a company you can afford, and get a copy of your policy to protect your home.
Service call fee
You must be prepared to pay a service call fee if you choose to sign up for a home warranty. This fee is usually a flat rate and is often the only payment you will have to make if your home needs repairs. For example, the average cost of a water heater repair is over $500, but a home warranty can help you avoid this expense. Depending on your contract, the service call cost varies but can be anywhere from $60 to $100. Regardless of how much the cost of repairs is, it’s crucial to have the fee disclosed in the agreement.
Plans like those offered at First American Home Warranty can cover a variety of expenses. These costs include enrollment and labor. In addition to lowering the costs of repairs, a home warranty can protect your investment from thousands of dollars in unneeded expenses. In addition, major systems and appliances are covered if they develop pre-existing conditions or simply experience normal wear and tear. However, if you don’t want to spend money on unnecessary repairs, you might want to consider getting a plan with a lower service call fee.
Cost
The cost of home warranty plans varies depending on your state, the type of coverage, and the add-on products you choose. Basic plans typically range from $432 to $816 per year. Most policies include service contractor fees, which are analogous to insurance deductibles. In most states, the homeowner pays a lesser amount of the service contractor fee than the total coverage cost. The cost of home warranty plans differs, with the most popular being the lowest priced. Although there is no uniform naming convention for home warranty plans, finding one that suits your needs and budget is possible. Read customer reviews and compare prices and terms and conditions to determine the best price. While the average cost will be higher than a flat rate price, you can permanently save money by choosing a detailed home warranty plan covering a more comprehensive range of potential problems.
Transferability
If you’re thinking about selling your home, you may be wondering about the transferability of your home warranty contract. Depending on your policy, it may be possible to transfer it to another house. This can be an excellent benefit if you’re selling a home. If you’re selling, the warranty can increase the value of your home and increase the price you can get for it when you sell it. You can also transfer the warranty contract to a family member or friend.
While home warranties may seem like a great idea, transferring them isn’t easy. Most home warranties are only valid for the original owner for the first year. If you’re planning to sell your house in a few years, you can transfer the warranty to the new owner. Real estate agents may sell your home to you and pass it along to the new owner.
Peace of mind
While there are many benefits of buying a home warranty, it can be expensive for its coverage. While a home warranty company may not charge you for repairs, they may decide to repair your house instead of replacing it. In this case, you may pay up to $100 per repair visit. Alternatively, you can purchase a prorated refund if the repairs take longer than expected. This way, you can have peace of mind and build a financial cushion when disaster strikes.
Many older homeowners worry about preparing for retirement and making their savings last as long as possible. However, they may also be on a fixed income and want to stay in their home for as long as possible. A home warranty will give them peace of mind by helping to manage the cost of repairs and provide them with the convenience of working with a network of contractors. This can be an intelligent move for older homeowners, who may want to consider purchasing a home warranty for added peace of mind.
