Making your dream of owning a home a reality requires careful planning and budgeting – in fact, most homeowners have to scrimp and save for years. However, the financial implications don’t stop there.
After paying the down payment on your new home, you’ll also have to pay your monthly mortgage payments. But that’s just the beginning. Many new homeowners are shocked to discover all the unexpected expenses that come with buying a home.
The True Cost of Home Ownership
You’ll also have to consider the cost of maintaining, repairing, and upgrading your home, appliances, and household systems to better look after your investment.
On average, you can expect to pay around two to four percent of your home’s value per year to maintain it, which adds up quickly when you consider that you’re paying out of pocket. Thankfully, there’s a way to mitigate a portion of your annual repair and maintenance costs by purchasing a home warranty.
Here are three reasons why you should.
1. Protect Your Finances from Unexpected Costs
One of the most significant advantages of purchasing the best home warranty plan is that it protects your budget. A home warranty will cover your home’s major appliances and systems – like your HVAC, plumbing, and electrical – if they need repairs or replacement.
When a major appliance or system in your home breaks, the unexpected cost can impact your finances. With a home warranty plan, you pay a consistent amount each month that’s much easier to work into your monthly budget.
When your appliances and household systems are protected by a home warranty, your home warranty provider will cover a portion or all of the costs to have it replaced or repaired.
2. Find Contractors Easily
One of the most challenging and time-consuming aspects of home repair is finding a reliable contractor.
While many people rely on online reviews when choosing a contractor, these aren’t always the best indicator that you’ve found someone with the knowledge and skills your home repair requires.
When you have a home warranty plan, the home warranty provider will contact a reputable contractor on your behalf – so you won’t have to find and coordinate contractors by yourself. When you make a service request with your provider, they will dispatch a professional contractor from a list of their preferred suppliers.
3. Protect Older Appliances and Home Systems
If your home is well-maintained but has older appliances and systems installed, purchasing a home warranty is wise. Because appliances and home systems are subject to daily wear and tear, breakdowns are inevitable.
Older appliances and systems are even more likely to need an expensive repair at some point in their lifetime, and there is also a chance that you will experience multiple breakdowns in the same year.
A home warranty safeguards you against the cost of repairs, parts, and replacement of older appliances and systems – which helps manage your finances more effectively.
While homeownership is an achievement that will bring you years of freedom and happiness, the costs of home maintenance can make owning your own home seem untenable. Purchasing a home warranty is the best way to manage unexpected expenses and protect your investment.