Home Warranty: 7 Money-Saving Benefits You Should Know

Homeowners know how stressful it is to maintain a house. The occasional repairs can occupy a large portion of your budget, and unexpected repairs and replacements can bump it up even further. Appliances tend to break down more often and hamper the regular flow of your life. But this is where a home warranty can save you.

A home warranty differs from homeowner’s insurance and covers the emergency repair and replacement costs of your home appliances and systems. This can help save your money and efforts, and allow you to relax. A popular home service company Cinch Home Services says, “Cinch Home Services covers the cost of repairing or replacing major built-in home systems due to normal wear and tear.” They also provide a complete home plan with expanded coverage that protects many appliances.

Still not sold? We have listed seven ways a home warranty can help you save money. Check them out below. 

Your repairs become more cost-effective

Appliances can malfunction and break down unexpectedly, and the repair can cost you a lot of money. Sometimes an urgent repair or replacement costs you a lot more than usual. This can easily create a dent in your financial plans, especially if you’re on a tight budget. 

A home warranty comes with peace of mind. The warranty covers your appliances, and you can rely on the home service provider for any immediate repair or replacement. No matter how urgent the repair job is, it never costs you a fortune. This helps you avoid any extra financial burden and makes your repairs cost-effective.

You get to save the service fees

If your appliance breaks down or malfunctions, you have to buy the parts and pay the service charge. A handyman can charge you a hefty amount depending on the hours needed to repair the item. Getting an urgent appointment with a handyman might not always be possible and can cost you some extra dollars. As a result, you might have to spend a lot more than you’d initially anticipated. Different service technicians or companies also charge different hourly amounts, and it can be hard to calculate your total expenditure for one repair.

With a home warranty, you pay an annual fee and minor deductible fees in exchange for an urgent service. You don’t have to pay hundreds of dollars after the broken parts or service charge. 

Your budget is more accurate

Those of us who are on a tight budget know how troublesome an emergency service can be. Every person allocates a cushion amount for urgent breakdowns and repairs, but depending on the emergency and service technician, this amount can exceed our budget. The amount can also fluctuate every time or be hefty if we have to replace the item.

This is where a home warranty can be a lifesaver. We pay a fixed annual fee and a deductible which allows us to allocate a fixed amount of our budget for urgent repairs and replacements. The expenditure remains within control even during unexpected mishaps, and we can prepare a more accurate budget.

You get wider coverage for a fixed fee

With a home warranty, you pay a fixed amount for multiple appliances and systems. Without a home warranty, you’d have to pay separate service charges and repair costs for every appliance. The warranty plan covers most home appliances, such as kitchen, plumbing, and HVAC (check the complete list with your home service provider). This ensures good value for money and helps avoid unexpected or redundant expenses. Also, you don’t have to look for different technicians if one of these appliances or systems malfunctions, and you can find all your solutions in one place and save valuable time.

You don’t have to incur emergency expenses

An unforeseen appliance breakdown can pause your daily life. Finding an urgent solution can be time-consuming or expensive and incur an unexpected expenditure. Sometimes even saving upfront doesn’t help if the service charge is high or the appliance needs urgent replacement. In such circumstances, we don’t have any other option than to give up extra money to fix or replace the item.

With a home warranty, you don’t have to incur this emergency expense. After paying the annual fees, you can rest assured that you will get service within your calculated budget and for a minimal deductible fee. This helps you relax and maintain your budget.

You enhance your home resale value

A home warranty can easily be an effective selling point for your property. It can also be a differentiating selling proposition that sets your property apart from others in the market. Buyers understand that a home warranty comes with peace of mind and that they don’t have to worry about expensive appliance repairs or replacements. This makes your offer more appealing and adds value to your home. Thus, it increases the chance of your house being sold much faster.

At the same time, you can market your house at a slightly higher price than others after including the home warranty. As your house comes with a valuable feature that can benefit the buyers for long years, they’ll always be ready to pay more to buy the property.

Your appliance gets an enhanced lifespan

Delaying repairs can damage your appliances or reduce their lifespan. With a home warranty, your appliances receive quick maintenance and regular inspections. As a result, you can identify even the smallest of issues and get them repaired before they can cause lasting damage. This practice ensures a longer lifespan for all your appliances.

Home appliances can break down unannounced and pause our daily life. With a home warranty, you can get immediate service and support and fix the broken appliances within a matter of days (or even hours). Without a home warranty, even having an emergency fund might not suffice, as individual appliances and services can have differing costs. Therefore, getting a home warranty is the wisest option for homeowners to ensure mental peace.