Are the Cheapest Home Warranty Plans Good Enough?

One of the issues facing property owners is how to stick to a budget. Those homeowners look for ways to keep their monthly expenses as low as possible, so they need to find the cheapest home warranty plans. If you’re looking for ways to keep your budget under control, explore the advantages of having an inexpensive home warranty.

Match the Plan Level to Your Home’s Needs

Most homeowners know kitchen appliances are costly to repair or replace. Today, the average cost of a new refrigerator is between $1,000 and $2,000, with high-end models costing far more. A new, free-standing range will run between $800 and $2,000, depending on the power source and various options. Drop-in ranges cost slightly less but are still expensive. Basic home warranties cover the repair and replacement of some kitchen appliances, which means owners won’t have to worry about a large unexpected expense to replace them. 

In some cases, that’s all the coverage a homeowner may need, especially if a home is relatively new. Those basic plans can cost as little as $25 per month, which is a worthwhile investment considering the peace of mind those plans offer. If one of the covered appliances fails, the plan provider will dispatch a repair technician to deal with the problem. 

Need More Protection?

Many homeowners are discovering the least-expensive plans don’t cover all the appliances they wish to protect. Those owners can elect to spend a little more and add coverage for more appliances and systems. For example, an older home is more likely to see plumbing, electrical, and HVAC components fail. While the cost to add more coverage will certainly be higher, the protection provided is still relatively inexpensive.

The important thing to consider here is the overall risk an owner takes when they choose not to cover a major component. Major systems are costly to repair or replace, and those costs will be the responsibility of the owner. Even a seemingly minor plumbing leak can be costly. Remember that many pipes are hidden behind walls or in ceilings. That means removing the wallboard or other elements to access the leak. That simple plumbing leak might cost $300 or $400 to repair, but replacing the Sheetrock and trim can cost even more. So, is it cheaper to protect only a few basic appliances and accept the risk of a hidden plumbing leak? 

Weighing the Pros and Cons of Different Plans

Numerous companies now offer home warranty plans. Some of them are worth the investment, but others are not. Deciding which plan offers the best coverage at the lowest cost won’t always be easy, as many providers hide exclusions and limitations. Always work with a provider that’s upfront about all costs and openly lists what is included in their various plans.

In addition, take advantage of customization options, as customizing a plan to meet your home’s actual needs may be less expensive. If you’re unsure which options will provide the cheapest home warranty plans, ask the provider for help.

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