New homeowners are always excited for moving day. At last, they have a place to call their own. They look forward to decorating and maybe some remodeling or an addition. Their plans rarely include fixing what they thought were perfectly good appliances, HVAC systems, plumbing, and other expensive items. When they get stuck with one of these surprise repair bills, their budgets can quickly break. To keep your plans for your new home on track, follow these steps to get the best coverage from a home warranty.
Can You Afford Out-of-Pocket Repair and Replacement Costs?
When the heating and air conditioning system stops running, the plumbing fails, or stoves and refrigerators break, you can’t just ignore the problem until you have the money to fix it. For new homeowners, it’s easy to forget this. When you’re a renter, the landlord foots the repair bills. Before moving into your home, calculate the cost of replacing all of your appliances and repairing plumbing, HVAC, and electrical systems. Do you have sufficient cash to replace them and still afford your other housing projects and bills?
Evaluate Home Warranty Terms
Most homeowners determine repairs and replacements would put them under severe financial strain. A home warranty, like that available from America’s Preferred Home Warranty, allows you to enjoy predictable payments that fit into your budget. For an affordable cost, you don’t have to worry about losing your heating or other calamity at the worst time. Not all home warranties are built alike. You need to find the one that works for you. Consumer Advocate recommends evaluating the items covered, the payout cap, and the deductible cost.
Are the items you cannot afford to replace covered? It’s important to know the maximum cost you are exposed to and select a matching payout cap. Consumer Advocate notes that low premiums correspond to high deductibles and vice versa. The deductible amount may also influence the number of items covered. The Consumer Advocate recommends choosing a company that offers customizable deductible options, so you can choose the one that best suits your situation.
Some warranties cover just appliances, others just systems, or you can warranty both. Many people would face large bills for appliance and system repairs and need to ensure both. If, however, you plan to replace the old kitchen appliances shortly after moving in, you may want to start with a systems-only warranty plan. Many systems coverage plans cover all home systems, from HVAC to plumbing, while appliance plans cover everything from refrigerators to garage door openers.
By evaluating plans in terms of your needs and financial exposure, you can select the warranty that’s right for you. With the peace of mind of an affordable warranty, you are on the way to great homeownership experience.