Most companies offer several plans with different premiums depending on coverage. Monthly costs vary depending on the home warranty company, the plan, if you add optional coverage, where you live, the size of your home, and other factors.
Home warranty companieswill set these premiums based on leveled packages, and the starter packages will include only basic home systems that cost less and higher-level packages that include appliances that cost more. Part of understanding the costs associated with a home warranty plan is knowing what these plans cover.
The graphic confirms the fact that the typical cost of a home warranty will largely depend on the plan the consumer chooses. However, a home warranty may not cover all the necessary repair or replacement, which means that you're likely to contribute some out-of-pocket costs in certain situations. If homeowners want to calculate what their monthly payment would be for a given plan, take the total annual payment and divide it by 12. Below you'll find The Home Service Club's estimates for the cost of repairing and replacing common household appliances and systems. You should also ask family, friends and neighbors how much your home warranty costs and learn about the providers they prefer.
The right home warranty contract can be an affordable way to give you peace of mind that you'll be financially protected from the high cost of home repairs. However, the exact cost of a home warranty will depend on the type of coverage you choose, where you live, and the home warranty company you buy from. While a home warranty provides coverage to repair or replace home systems, home insurance covers the cost of damage to your home and other structures, the theft of your personal items, and lawsuits or claims against your property. Covered systems and appliances must be properly serviced and maintained; if the oven hasn't been inspected by a professional in 15 years and then fails, the warranty company may refuse to cover the replacement cost, while the same oven is routinely maintained every 2 years (with documentation to prove it) can be covered in its entirety.
When you compare the cost of a home warranty plan to common household expenses, you can have a clearer idea of how it fits into your life. It's essential to read the fine print and understand what's covered and what isn't and what conditions may exist for filing claims when budgeting the cost of a home warranty. The premium is the cost of buying the security right that you pay for the privilege of being covered. Plans are usually 12-month contracts, and providers usually give you the option to pay monthly or all at once.