How to Budget and Your Costs with Home Warranties?

You can tick off major life achievements when you buy a house. All that hard work to save money, obtain a mortgage, and proudly call yourself a homeowner. While you would be happy to live the lifestyle you desire, your responsibilities will also rise.

Yes, you can install HVAC or buy other appliances without a landlord’s approval. But you need to ensure you look after those systems and appliances when they need repair or maintenance. If you are thinking, “This can eat up a large chunk of my savings,” you are right, it can.

But there is a way to reduce your home maintenance and repair expenses. You don’t have to look at your finances whenever there is an unexpected malfunction or wear and tear for home components. You can do that by choosing home warranty plans to cover major appliances and systems.

We are about to discuss what warranty plans are all about and how creating a home repair budget can help you manage your expenses.

Here we go.

Key Takeaways

Home Warranty Plans

The home warranty is a third-party service to deals with maintenance and repairs for a smooth living experience. This agreement between you and the home warranty provider saves you from spending a long time on your repairs and the hassle of finding professionals for the services. That is taken care of by the warranty providers.

There are different home warranty plans and coverages that can allow you to cover the right home item. So, whenever there is a malfunction or breakdown of your appliances or systems, the home warranty providers will be a call away.

How Are Home Warranty Plans Different from Insurance Coverage?

If you think a home warranty is the same as home insurance, we don’t blame you. That is because there is not a big difference between the two concepts.

We have discussed that home warranties deal with repairs and maintenance needed between malfunctions, breakdowns, or wear and tear.

The home insurance goes a step further. You can claim your home insurance coverage in unexpected events like natural disasters or home theft.

So, if your home has been robbed or a fire broke out, you cannot claim your home warranties.

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Home Repair Budget Made Easier

One of the reasons why you would want is to go for a home warranty plan to make home budgeting for home repairs easier. By doing so, you can unlock a lot of the benefits that you would be looking for.

So, the next time you have a plumbing pipe leak, HVAC malfunction, or any other trouble, you will not be frustrated and think, “What should I do now?”

Let’s look at some of how warranty plans can help you develop efficient home repair budgets and say bid farewell to financial headaches.

Deal With Unpredictable Home Repairs

You would know that many of your home components can be fragile and need to be looked after. And when we say “looked after,” it means spending a lot of dollars on it.

And to add to the confusion, these repairs and maintenance usually come as an unexpected and uninvited guest. Imagine not having access to hot water in chilling winters because the water heater is not working. That is just one trouble that can be caused by these unexpected repairs.

That is where home warranty plans bring more certainty. When you are covered with a home warranty, you don’t have to pay for these repairs. All need to do is bear the cost to opt for your preferred home warranty plan. Once that is done, leave the rest to the home warranty providers.

No Need to Set Aside Money

Usually, budgeting means “Setting aside a certain amount of cost.” In the world of real estate, homeowners tend to set aside 1% to 3% of the total home purchase price for repairs and maintenance. But things are different when you are covered with a home warranty plan.

Instead of paying hundreds and thousands of dollars on your home repairs and maintenance, you can opt for a monthly or annual home warranty plan. Every home warranty provider has their own fees.

You should get a monthly home warranty plan for anywhere from $40 to $70. Add to that the service fees, which can be from $60 to $120. That is way better than paying for every necessary repair, right? You can save a lot of money with a home repair budget.

Reduce Your Anxiety

You are in an important meeting or out enjoying your holidays. But during that time, you are worried, “What if the plumbing pipes leak?” or “How will I deal with refrigerator malfunction.” That feeling can be overwhelming, and a home warranty plan is the antidote for it.

You don’t have to worry about the next home repair expenses coming your way. That will be taken care of by the warranty provider. And that is not all. There is more. You will not need to look for a reliable service provider to make your repairs. That part will also be done by your warranty provider.

If you have a lot on your plate, this can be invaluable for you.

Increase the Life Home Components

When you make the investment to buy an item for your home, you would ideally want it to stay with you for a long time. That is what you can do with consistent and routine maintenance to see if everything is working fine.

As much as this routine maintenance would mean your home repair budget would be low, your maintenance expenses may skyrocket. That is where home warranty plans can do the trick for you. Once you opt for your preferred plan, the warranty provider will take over the maintenance.

So, the next time the HVAC needs a filter change or the stove needs cleaning, you don’t have to spend a lot of money on that. Timely maintenance of the home item not only avoids repairs, but you can make sure the home item does not suffer a breakdown anytime soon.

The Bottom Line

Going for the right home warranty plan can cut through your home expenses, and a knife cuts through the budget. If you have decided on a home warranty plan, you may also want to look for a property that meets your preferences and interests.

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