Many people are not fully convinced about the utility of having Home warranty insurance plan and therefore in this small article we will try to explain how much you can save from your annual budget by having such Insurance. Home warranty is in fact a service contract that will help you to repair or replace your house components in case of any failure. Now, the question is that if there is no repair claim in a year then why a homeowner should pay annual premium.
What is the Logic behind Home Warranty?
Home warranty insurance company has contact with various technicians and repair service providers. They will send their representative as soon as they receive any complaint. The home owner will be required to pay some amount as service charges and need not bear complete cost of repair. Following are few benefits of having best home warranty coverage from any authorized company.
- Homeowner need not run around to look for the service provider in case any component breaks down in his premises
- Home owner need not carry the damaged item to the service station
- The cost of repair borne by the home owner will be certain percentage of total repair cost
- If the damage cannot be repaired then the component will be replaced by paying minimum cost
- The selling price of your property will go high, if you have home warranty coverage
How can you Save Money with Home Warranty Insurance?
Many people think that paying premium for home warranty is unnecessary expense, particularly if you need not put any claim in that particular year. However, they fail to realize that when any major damage takes place in a important gadget of your home then not only you will face inconvenience for a few days, but also you will not find suitable technician to fix your problem.
Sometimes, the repair cost can be very high and in case the component needs to be replaced then your budget may go hay-way. However, by paying a small amount as annual premium, you will have peace of mind. In case of any failure, you have to simply give a call to your home warranty company and the whole thing will be taken care by them. All that you have to spend on is certain percentage of the total repair cost. Does it not benefit you monetarily?
When should you Avoid Taking Home Warranty?
If your home is brand new and fitted with new gadgets then it does not make sense to buy such policy. Since most of your gadgets will be under warranty where you can get free repair service. Therefore, as a general rule, it will be advisable to have such policy when your house is above four years old.
Therefore you must buy home warranty under following conditions.
- If your property is more than 4 years old.
- You cannot repair various gadgets all by yourself.
- You cannot afford high cost of repair.
- You cannot run around to look for the repair contractor.