Time and again, the truth has been spoken. A home warranty plan saves you big money. As the saying goes ‘a stitch in time saves nine,’ home protection plans offer maximum coverage and bails you from burning dents in your pocket for paying bills against replacement and repair of appliances and home systems. Why only restore broken appliances to working order? A home warranty company saves you from shelling out hundreds of dollars for scheduling maintenance.
Wondering what is the true price of a good home protection plan? Well, the devil is certainly in the details. There is no one exact figure you can count on. Every home is distinct and so are the protection plans. Much depends on the extent of coverage you choose to run with. Are you confused about the concept of coverage? Simply put, it is the type of plan you are interested to invest in and sign up for.
To spill the details of the cost of a home warranty plan, we need to look into the factors on which the price depends.
Factors affecting the cost of a home warranty plan
1. Coverage
What is the specific home protection plan you are eyeing to fetch? How many appliances does the plan secure? Does the warranty offer coverage on crucial mechanical systems in the house like electrical or the plumbing system?
Ask yourself these questions before you jump into a home warranty pricing model. Not every plan offers protection for all systems and machines in the said property. A comprehensive home protection plan offers coverage on all appliances and systems. This, of course, is priced steep compared to a warranty that protects a couple of appliances.
In a nutshell, the greater your coverage, the higher the cost of a home protection plan.
2. Area-based prices
You will be surprised to learn that many home protection plans are specifically tailored according to your geographical location. For instance, home warranties in Kentucky offer all-in-all coverage at steep prices. This is very different from other states. If you are wondering why here is your answer. The chances to make higher margins of profit is greater in these areas. Kentucky is extremely humid. Result? The chances of air conditioning systems burning out or home systems falling apart are higher in Kentucky. If the plans are not priced high, companies will lose money in providing services of home maintenance, repair, and replacement.
3. Deductibles
In a professional term, deductibles are referred to as call-out fees. There are a couple of expenses that a home warranty company doesn’t pay for. Regardless of when you file a claim, the company bails on footing such bills.
Home warranty plans priced anywhere between $500 to $750 include a higher count of deductibles. On the contrary, deductibles are merely any on home warranty plans that charge you more than $750 annually.
It is essential to check for the deductibles carefully before slimming your options of home protection plans.
4. Companies in business
The competition is real. Home warranty plans are up for grabs at different prices by different companies. Choosing to invest in a home warranty offered by a reputed company is undeniably safe. Of course, the eminence and business ethics of the specific company precedes. However, the plans might seem slightly pricey, compared to home warranties offered by new companies in the business.
Also, keep an eye on the coverage limit imposed. It is easy to skip through details like what is the sanctioned amount of coverage imposed on a particular product. Is it $1500 on one AC unit or two? Not every company caps the coverage on appliances and systems.
Getting hands on the right home warranty that fits your budget and your requirement is slim picking. There are too many things one needs to keep tabs on. Hidden charges, fees, terms and conditions for example. To top it off, there are various factors on which the price of a home protection plan depends. There is no one-figure plan for all and sundry.
