Do you take out loans without putting much thought into it? No! Being ignorant in matters of finance is a bummer. Knowing your way around funds and ways to safe-keep money is essential. Why do you think insurance makes it big in all circles? When you invest a chunk of your earnings in an asset or an expensive product, do you shy away from insuring the same? Certainly not! Property is no different. Homeowners are hardly reluctant to pay extra for insurance. New property owners, unfortunately, find very little credence in-home warranty plans. Are you one of them? Not sure why investing in a home warranty plan makes sense?
Well, think about it - will home insurance reimburse the costs of repairing a refrigerator that snaps out of the blue? No, insurance will not cover the expenses. Wear and tear and mechanical flaws are very common. No home insurance squares off expenses in fixing worn-out home items. A home warranty plan, however, hits the mark in circumstances of mechanical failures. Insurance money comes into play only when the damages are the aftermath of earthquakes, floods, or disastrous cyclones. A fire outburst or events of burglary causing extensive destruction of home appliances and systems are payable by the insurance too.
Of course, cyclones and tornados are not quite frequent, in comparison with mechanical wear downs. Are you comfortable forking out riches in repairing your everyday home appliances? Also, are you sure that repairing an appliance once is a guarantee that the home component will not stop spinning ever again? Investing in the right home warranty plan keeps you safe from making a dent in your cash reserves.
Setting up the nooks and corners of a crashpad is an expensive affair. Adding to the bills when you are pretty much cash-strapped installing brand new home systems is unwanted trouble. Dealing with sudden expenses of mending a breakdown of appliances is a no-go when a home warranty plan is active.
Must you shoot in the dark though? Putting your money in any home warranty plan that lures you is an uninformed and rushed decision. Take time in digging deep and learning more about the home warranty plans available.
Things to bear in mind before you sign a warranty agreement
1. What exactly does a specific home warranty plan cover?
Bear in mind, a home warranty plan is not a financial solution for damages of all scales. Are you of the idea that home warranty plans sweep and pay for damages as a result of natural disasters and fire outbreaks? No. This is why you have home insurance. Learning the limitations imposed by a home warranty plan in advance is key. Once you have signed up for a contract, your payables and non-payables are pretty much set in stone.
2. Is a service fee charged when a contractor visits for home inspection and repair?
The details are in the fine prints. Make sure you scroll through the details thoroughly. A home warranty plan may or may not incur service charges. It is often labeled as deductibles. Paying for a home warranty plan that charges you a swanky service call fee is not worth investing.