Many experts have said that a home is the most significant investment a person will make in his or her lifetime. That’s certainly the case for most people considering the rising costs of homes. Of course, the actual purchase prices aren’t the only expenses that factor into the equation. Insurance coverage, maintenance, repairs, and improvements also enter the mix.
Looking Into Underlying Home Ownership Expenses
Those are some of the common costs of home ownership that linger on the surface. Other outlays can also arise from time to time. After all, utility bills are unavoidable. No matter how conservative a family tries to be, they’ll still need to rely on electricity, gas, water, and the internet. Furniture and flooring need to be replaced periodically as well. On top of all that, appliances and home systems don’t last forever. For those latter incidentals, a home warranty company can help offset at least some of the costs.
What Is a Home Warranty?
Many people may feel that a home warranty is just yet another unnecessary expense. Homeowners are required to have insurance coverage on their homes, right? With that in place, why would anyone need to add a warranty to the list?
In truth, homeowner’s insurance doesn’t cover all the possible issues that could develop over time. Generally speaking, homeowner’s insurance covers problems caused by acts of nature and other people. Those could include tornadoes, winter storms, fires, and vandalism.
Should an appliance break down, homeowner’s insurance won’t cover the cost of repairs or replacement. That’s also the case with the electrical system, plumbing, HVAC, and certain other components of the home. For those issues, homeowners who don’t have the additional protection of a warranty are often left to shoulder the financial burden on their own.
Why Is a Home Warranty Important?
Home warranties are important for many reasons, but the most significant is the protection they provide against unexpected expenses. Even supposedly minor expenses can be enough to knock a family’s budget off-kilter. Based on a recent write-up, more than half of Americans don’t have enough money in savings to cover a $1,000 emergency expense.
To put that into perspective, quite a few home repairs and item replacements cost well over $1,000. Imagine if an overhead light were to stop working due to an electrical issue. Remedying the problem could cost $1,200 or more including parts and labor. What if a washing machine reaches that infamous point where it costs more to repair than it would to replace? Even basic, low-end models can cost more than $500. Replacing a home’s HVAC system can cost anywhere from $5,000 to $10,000.
Protecting Homes and Families
Those are only a few common unexpected expenses to consider. They could certainly lead to financial hardships for most families. Home warranties cover those costs and many others. Different plans are available to suit varying needs and budgets, so having extra protection against eventualities is well within reach for many Americans. Considering the possible costs of home repairs and appliance replacements, one might say most families can’t afford not to be covered.
