The joy of home ownership is something that many people spend most of their lives preparing for; careful saving and planning, checking credit scores to ensure that the best possible deal is struck. Finally, the moving truck has gone, the dishes are put away and the dust has settled. However, as prepared as we think we are, the true cost of homeownership only becomes apparent when the first appliance goes on the fritz.
Home Warranty Vs Homeowners Insurance
Supplemental policies have been on the market for a number of years. When we think of them, we primarily think of health insurance. However, in recent years home warranty policies are becoming more prevalent. They are shining a light on issues that have faced homeowners for decades and asking the tough question: How do I pay for the unexpected repair or replacement of this appliance?
A homeowner’s insurance policy is meant to cover damage to the home due to storms, fire, and other unforeseen acts of nature. Unfortunately, the policy is only as good as the one the homeowner purchases. As good as that insurance policy might be, it will not lift a finger to help you if your fridge stops running. The repair or replacement will fall entirely on the shoulders of the homeowner, and the cost can be thousands. A TotalProtect Home Warranty is an entirely different matter. This is precisely what a home warranty is built for. Rather than depend on your maintenance company to cut a little slack and give a discount, a home warranty policy can provide the supplement coverage needed to fill in the gaps. And the gaps can be more numerous than you think.
Home Warranty vs Your Home
The home of today is a little different from the ones a few years ago. Yes, they are built with the same bricks, wood, and appliances. Unfortunately, there are a lot of other things that go into making a home function that no one notices until an emergency happens. And as any purchaser of an expensive item can attest, nothing breaks until the initial warranty has expired.
A home warranty can also assist in these seemingly little things that a homeowner probably has not even considered. The average supplemental policy will cover appliances. However, they can also be written to cover items such as light fixtures, electrical wiring, plumbing, etc.
This is especially beneficial as homeowners tend to upgrade to wireless systems or AI technologies. Paying an electrician to replace outdated or damaged wires can get very expensive since the technician not only charges by the hour but by the foot of wiring installed. Moreover, just think how much it would be to reprogram an AI system that is used all over the home to turn on lights and operate thermostats and even garage doors.
The conventional school of thought is that an insurance policy or a maintenance plan is going to cover the expenses of whatever happens in the home. Unfortunately, this is untrue and the surprise expense can really throw a wrench in a monthly budget. The good thing is these expenses can be mitigated, not only with proper planning, but proper coverage.
Think of it more like this; the appliance breaks and someone has to fix it. More to the point, someone (you) has to pay for it. With a home warranty plan, your out-of-pocket expense could be little to nothing if the broken item falls under your coverage.
The additional benefit is that home warranty policies are not just meant for homes already built. They can also be purchased for new construction as well. This is especially beneficial as warranties on new construction is generally only for the first year. Any extensions after that may only cover material defects. Not to mention, you could be left up a creek without a paddle if the builder of the home is out of business.
The purchase of a home warranty is not only a good investment, it just plain makes sense. Homeowners have enough worries and obligation without having to deal with broken appliances and damaged wiring.
