How Much Does a Home Warranty Cost?

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It’s rare to find someone who doesn’t use home appliances or systems at present. There is no denying that our lives have become remarkably easier with the advent and wide availability of a wide range of feature-rich home-based equipment. However, electronically operated home devices can develop minor or major faults anytime and stop functioning. Hence, it’s crucial to opt for a home warranty.

You need not pay a single penny if a home appliance such as a refrigerator, microwave, television, or air conditioner breaks down before the home warranty period ends. Know that the home warranty cost varies from one provider to another. Therefore, obtain quotes from a few different companies to get hold of the best warranty on home systems.

Nowadays, almost every person invests in a home warranty contract to cover expensive appliances. A home warranty prevents an owner or user from spending hundreds or thousands of dollars on the same device once they become inoperative within a few weeks or months.

What’s a Home Service Contract?

Many consider a home warranty as a home service contract. If a home appliance stops working due to normal wear and tear, a home warranty or service contract covers repair or replacement expenses. However, keep in mind that it is a one-year contract. You won’t have to pay out of your pocket if an appliance with a home warranty malfunctions within a year after you purchase it.

A home service contract covers all types of home systems and appliances. It also offers extra coverage for external devices or relevant costs. A home warranty provider bears the repair and labor expenses when a part of a home appliance wears down. However, when the damage on a home system you own is significant, or there is no availability of some key parts, the provider pays the replacement costs.

Home Warranties Cover Two Major Costs

You should make a purchase of home appliances or systems that come with a warranty to have enough peace of mind. Home warranties cover two major expenses, including the monthly or yearly premium amount and the service charge.

The sum of money you must pay monthly or yearly for the entire tenure of the policy is the premium amount. The amount a technician charges for repairing a malfunctioned home system is the service fee.

Most leading home warranty providers allow customers to tailor their premium amount and service fee. Opting for paying a higher service charge will reduce your premium expense. Take the number of claims into account that you feel you might have to submit throughout the warranty period before making your final decision.

Summing Up

See, what exactly you need to pay for a home warranty is entirely dependent on the number of appliances you want the home service contract to cover. You won’t have to spend much if you need coverage for only a few home systems. The monthly premium amount will be more if you want comprehensive coverage.