Ever hear those homeowner horror stories about sudden, unexpected and major home repairs at the worst possible time financially?
Mortgage, tax and insurance payments are burdensome enough. These expensive emergencies are often just the tipping point.
They can wreak havoc with even the most financially responsible homeowners. The information below reveals the most common sense solution for shutting down such financial threats before they happen.
What is a Home Warranty
While home emergencies cannot be anticipated, they can be prepared for. A smart homeowner knows anything man-made can malfunction, tear up and just plain wear out without warning. It is therefore incumbent upon that homeowner to be as prepared as possible for these unavoidable expenses.
A home warranty is just the ticket for being budget-prepared to handle your home’s major structure and its operating systems. These warranties are basically insurance policies that pay certain stated amounts toward the repair or replacement of a major house system in the event of damage or loss.
Warranty Cost Factors
A home warranty company prices such protection based on several factors. They will look at the age of the items to be insured. They consider whether the systems have been maintained properly. Repair and replacement history up to the point of insuring it are also determining cost factors.
They may even ask to see maintenance records. A warranty company also takes into account the use level of what they are insuring. For instance, a less expensive system that is seldom used and with low potential for repair or replacement gets a lower rate than an item that is in regular, heavy use.
Even the home location plays a major role for calculating warranty costs. Homes in storm-prone areas are more expensive to warranty than those that are not. Price is directly linked to risk potential.
Different Types of Situations You May Need a Home Warranty
Certain homeowners may need a home warranty more than others. The major determining factor is usually related to the financial strength of the homeowner.
People with healthy incomes, savings and bank accounts can weather these financial hiccups much easier than a person on a tighter budget. Generally, if your financial funds are already limited, it is a good idea to have this layer of protection in place. Look at as extra protection for lowering the out-of-pocket hit to your budget.
A good general rule for determining whether a home warranty is needed is to multiply the warranty premium times 12 months, then 24 months.
Continue to increase the months of warranty cost until you match the cost of the most expensive system to repair or replace. That is your financial threshold for whether a warranty fits your budget or not. Even purchasing a percent of this figure in coverage is better than not having it at all.
What Could Be Included in a Home Warranty
Different home warranty companies offer different protection plans. All of them offer levels of protection, and the cost is relative to the amount of coverage the homeowner chooses.
Generally, these companies work with clients to match the best coverage possible for the amount of money the policyholder budgets. Home warranties in Texas work with homeowners to match the best coverage possible for the amount of money the policyholder budgets.
Home warranties here in Texas can vary widely depending upon the region of the state. Shop specifically for available warranty coverage that fits your needs.
How Do You Get a Home Warranty
Purchasing a home warranty you can afford that offers adequate coverage is a simple, straightforward process. Shop for it like you would shop for any other insurance coverage.
The key is to buy only the coverage you need and can afford. The principle here is some protection is better than none.
When the inevitable does happen, you will be thankful for any reduction in the repair or replace bill. If your home warranty only covers as much as 30 or 40 percent of the total bill, it is still money well spent. The direct budget impact will be lessened by at least that much.
To get a home warranty, contact home warranty companies in your area. Compare coverage and prices, and select the best option for your current financial situation.
Major home systems are expensive to repair or replace. Take the time to purchase this much needed protection without delay.