Are you interested in buying a New Jersey home warranty but aren’t sure if you’ll save money? You can save a bundle when you have one. Get the details to get a better idea of how much you can expect to save.
Save Money on Expensive Replacements and Repairs
On average, people paid annual home warranty premiums of $350-$600 in 2021. That’s quite a bit lower than you might have expected. Additionally, policyholders pay a small service fee that often runs from $75 to $125, although you can find plans that only charge a $50 fee. This is paid every time a technician goes to the home.
Let’s say that your home warranty is on the high end, so you pay $600 a year for the premium and $125 for each service call. You make a single service call for your central air conditioner, which costs $5,000 to replace. At that point, you would have spent $725 total for the year, yielding massive savings.
In this example, you only used the warranty a single time and saved a lot of money. You can save even more if you need additional services. For instance, replacing a tankless water heater can cost $3,000. Again, you’ll come out way ahead.
You can even save if you don’t have expensive repairs. For instance, if your dishwasher, refrigerator, and other appliances go out, you could easily spend thousands of dollars replacing them. That won’t be an issue when you have a home warranty.
Save on Service Calls
You’ll have to pay a fee for service calls with or without a warranty. However, you’ll find that the fee is normally much less with a warranty. Depending on where you live, the standard service fee in your area could be $150 or more. In fact, some contractors charge such high service fees that homeowners decide to put off necessary repairs. Since you can pick a policy with a low service fee, you won’t have to worry about going over your budget to have a technician come out when you have a warranty.
Get It Fixed Right the First Time
Do you attempt to repair things yourself to avoid paying out of pocket? While that can help you save money, it can also have the opposite effect. It’s easy to make a critical mistake when attempting to repair items, and that can be costly.
What starts as a simple fix can turn into an expensive one when you try to do it yourself, so a home warranty can help you save money. In almost all instances, the appliance or system will be fixed right the first time. If it isn’t, most warranties guarantee the work, so you can have the technician come back free of charge if he or she makes a mistake.
Avoid Unexpected Expenses During Closing
If you’re selling your home, you want everything to go smoothly. That means you don’t want to scramble to find the money for repairs before closing. You’re already likely spending enough money on your new home, so you don’t want to pay more to sell your existing one.
Fortunately, you can save money with a home warranty. You can send the list of expected repairs to the warranty company and then merely pay the service fee. That’s so much more affordable than paying out of pocket for everything on the list.
Get Maintenance With a Home Warranty
Maintaining appliances and systems can also be quite costly. You know you need to stay on top of maintenance to optimize performance, but you might have trouble finding the cash. Fortunately, some companies offer maintenance as part of the warranty plan.
For example, you can get a plan with free HVAC tune-ups. AC tune-ups generally run from $75-$200, so you can save big with the service. As a bonus, the regular tune-ups will also help you stay in compliance with the plan. Maintaining the system is necessary, so it makes sense to include tune-ups.
Start Saving Today
If you want to save money, now’s a great time to start shopping for a home warranty. You can buy a warranty for a new house or one you’ve lived in for a while. Plus, you can add the warranty to protect you when you’re selling your home. Start shopping and comparing quotes today so you can buy a policy.