5 Methods a Dwelling Guarantee Has Saved Us Cash

There was a time when we didn’t have a home guarantee when anything that broke in our home was our financial responsibility. Depending on the condition of the house when you buy it, it can be expensive to pay for everything yourself. There was also a time when we had the wrong home guarantee. It helped cover service calls and most of the time Repairbut only paid the depreciation for everything that needed to be replaced. When a 10 year old water heater broke, the warranty company would add the value of a 10 year old water heater (almost nothing) to the installation of a new one. In short, we paid 90%.

Not all house guarantees are created equal. The initial warranty on our current home was a stinker, and I’ve heard from friends who were dissatisfied with their home warranty. When we dropped the first warranty and bought a new company, I wasn’t sure how lucky we would be. Still, we had a wish list. When we were looking for a new home guarantee, we were looking for three things:

  1. A policy that covers replacement costs
  2. A company that does not reject (or exempt certain items) requests based on the age of systems or devices
  3. A policy with full coverage (that is, a policy that covers the largest number of items)

A typical home warranty currently costs between $ 28 and $ 50 per month. When we found a company that seemed to have what we were looking for, we looked for the most comprehensive warranty they offered. Protecting our four bedroom, four bath home with two ovens and two central air units costs us $ 63 a month – the best $ 63 we spend a month. Here are five ways we have saved money with this guarantee.

1. Service calls

The average device service call costs anywhere from $ 50 to $ 150 an hour, according to Home Advisor. We pay a one-time fee of $ 75 when a service technician comes, no matter how long the job takes. If they order parts and have to come back another day to install them, we won’t be charged another fee. Knowing we’ll only spend $ 75 if the refrigerator or water softener breaks makes the hassle a little easier.

2. Repair costs

The stoves were almost at the end of their life when we bought the house. The first times either of them collapsed, they could be repaired. We didn’t have to pay a cent for these repairs beyond the service fee. One year the oven stopped working on New Year’s Day, and anyway a service technician came and got it working again – all for $ 75.

The average cost of an oven repair is $ 303. Since our two ovens were repaired four times in two years, that would have cost us around $ 1,200 without a house guarantee. Instead, we paid $ 75 per visit for a total of $ 300.

3. Replacement costs

After three years, both ovens had to be replaced. The average cost to replace and install would be around $ 5,500. With our warranty, we paid $ 75 for a service call and $ 250 for a new plenum (the sheet of metal made that connects the oven to the duct system). I’m not sure why that wasn’t covered, but we were so happy to have a house guarantee that we didn’t bother paying the plenary.

In total, these two new ovens would have cost us $ 11,000. Instead, we paid a total of $ 650 (two $ 75 service calls plus two $ 250 trays).

4. Insider offers

Since our home warranty company almost always sends the same local company in for repairs, we got to know the technicians pretty well. Not only did the technicians give us tips to help our systems and equipment last longer, they also guided us to the best deals on items we’d like to install. For example, when we mentioned that we wanted to replace a non-working humidifier for the whole house, they told us how we could do it for $ 350. The average cost to buy and install a whole home humidifier is about $ 900, so we knew we were getting a deal.

5. Buy new

I like my house – very much. However, the oven and dishwasher are two of the ugliest appliances I’ve ever seen. When I was younger and a little less smart, I would have replaced them while laying hardwood floors and painting walls. But no. The house guarantee covers both devices when they make their final arc, and I am eagerly awaiting the day. Having a home warranty means you don’t have to pay anything to replace something that the warranty eventually covers.

So how much did the home guarantee save us overall? We can get to the heart of it by just focusing on the stoves. Over the course of three years, we paid $ 2,268 in warranty premiums ($ 63 x 36 = $ 2,268). We also paid $ 450 for six service calls and $ 500 for new plenums. In total, we paid $ 3,218 for warranty premiums, service calls, and materials that were not covered under warranty.

If we hadn’t purchased a warranty, we would have paid the full cost of service, repairs, and replacing the two units – which would have set us back by at least $ 12,200. We could use the saved money for other things, such as invest for retirement.

I can’t imagine ever knocking out anyone else mortgage without choosing the right home guarantee to protect our interests. Still, our home guarantee company offers a level of coverage that may not be offered by every company. This is why it’s important to make a list of what to look for in a warranty and look around to find the company that best suits your needs. By purchasing the right home warranty, we saved nearly $ 9,000 and met some pretty clever technicians in the process.