How You Can Save Up To $500 On Home Appliance Repairs
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Who wouldn’t want to save money on Home Appliance Repairs? When you save up to buy the best appliances on the market, you want them to serve you well for a long time. However, accidents happen and even the best tech might break down. Sadly, your manufacturer’s warranty will only cover so much, so you might end up with an unexpected and hefty repair bill. Home warranty plans can help you with this specific kind of situation. If you choose the plan wisely, it will cover a big fraction of repair or even maintenance costs, which might save you up to $500, and sometimes even more.
How You Can Save Up To $500 On Home Appliance Repairs
Home Warranty: What Is It and How Much Money Can It Save You?
You can think of a home warranty plan as an extended version of a manufacturer’s warranty. However, do not mistake it for the actual extended warranty, which is often offered by retailers you buy appliances from. Unlike the manufacturer’s and extended warranties, the home warranty plan covers several appliances and home systems at once. This means that you don’t need to purchase several policies to cover your most expensive devices. Instead, you invest in the plan once and it will cover all the essentials, such as:
- Electrical system
- Garbage disposal
- Washer and dryer
The exact coverage varies depending on the plan and the provider. However, the majority of home warranty companies offer several plans and additional optional coverage. This means that everyone can customize their policy enough to get the best protection for their home.
Your home warranty plan will save you money if some of the items on the covered list break down. If this happens, you will contact the warranty provider and they will send in a suitable contractor to deal with the issue. You will pay a service fee of about $75, on average, and the home warranty company will cover the cost of the repair. Considering that the average appliance repair cost in the nation is $50-500 and a home warranty plan costs about $400-600 a year, you might be able to save a lot of money with this kind of protection.
You see, the important factor to consider is that the average numbers are a poor representation of what exactly you might need to pay should an expensive appliance break down. To get a more accurate idea of how much an appliance repair might cost, you should research it specifically, like how much does it cost to repair a washing machine’s transmission? ($350 + labor costs that vary by state) With this kind of numbers, the value of a home warranty becomes much more obvious.
However, you also need to understand that not all home warranty plans can be trusted. And if you don’t choose carefully, you might end up wasting money on “protection” that doesn’t protect you at all.
Possible Pitfalls of a Home Warranty Plan: What to Look Out For
The most common problem that might prevent you from actually saving money through a home warranty plan is purchasing it from an unreliable company. Unfortunately, many of these businesses can’t be trusted as they would use every opportunity to avoid payments.
So, finding a trustworthy provider should be your first priority. You should study reviews of the companies on various consumer forums, like Yelp to gauge how reliable the business is. Review Home Warranties editor’s notes will offer a different perspective on the same as an independent review portal. There you can learn information about the company’s ratings on different consumer-oriented platforms and the chance of claim denial, calculated based on information from those and other sources.
Another common problem, and also a frequent cause for claim denial, is not understanding what exactly your home warranty plan covers. It’s imperative that you study every word of the contract and the plan’s terms and conditions. You need to know exactly what types of breakdowns are covered and what situations might be used as a basis to deny your claims. Read the fine print as it often contains loopholes that home warranty providers use to get out of payments.
While studying those documents, you also need to pay attention to the coverage limits. Every home warranty plan will have a maximum payout limit, which means that if your repair bill exceeds it, you will cover the difference out of pocket. There are over 180 providers in the US today and each of them has unique terms in this regard. Therefore, you need to compare the offers so you can pick the best one for you.
Research the cost of home appliance repairs beforehand so you know what kind of bills you might be facing. Also, check if the coverage limits are set per item or per plan as a whole.
The final possible issue that can make your home warranty plan useless is the claim filing procedure. Some providers are extremely unreasonable about it and require you to file a claim within a day max. This might be impossible due to many issues, most of them depending on contractors. And yet, this little detail might make it impossible for you to claim your rightful payments.
Research plans from the trusted top providers and study independent professional review platforms to better understand what exactly good and transparent terms and conditions must look like. This will help you catch any red flags while studying the coverage options available in your area.
Home Warranty Plans: A Way to Save Money for Those Who Are Smart
Home warranty plans might not be the perfect protection and money-savers that their ads claim them to be. However, if you are smart about choosing a plan with extensive coverage from a reliable provider, you can benefit from it greatly.
It will be a good investment for those who want to have an extra layer of protection for their new appliances, which are expensive to repair.
Just make sure that the plan you choose actually covers the issues that are most likely to incur a huge repair bill. And double-check the provider’s reputation to see if this company can be trusted to fulfill the terms of the contract.
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