Should You Renew Your Home Warranty for your Home?

Owning a home causes you to ask critical questions and make many important decisions. The decisions you make regarding your home can affect your life for the next several years and beyond. There will be financial implications with these choices, so you want to make sure you’re doing what is in your best interests.

When to do home renovations and repairs is something you will have to think about. Repairs may be necessary to make your home safer and more comfortable. You may have to fix a broken appliance or system to continue to enjoy the conveniences and ease they offer. It can take a huge chunk out of your budget to fix an item or replace it. This is where a home warranty can be a tremendous benefit.

Your warranty will last a year. Once it expires, you’ll have the option to renew it. It makes a lot of sense to do this and continue to have protection.

A Reminder

If you are thinking about renewing your home warranty, you likely understand what the plan entails. In case you haven’t taken advantage of it yet or don’t realize its full benefits, it can be helpful to have a review of what this plan covers. A warranty is an agreement with a company to provide service for a home appliance or system that breaks down. You agree to pay an annual or monthly payment. In exchange, the warranty company protects you from having to pay out-of-pocket costs for any repairs or replacements.

Remember that your warranty covers a wide range of items in your home that stop working due to wear and tear. Your plan also accounts for appliances and systems that unexpectedly break down. It will not take care of damaged items that are a result of your carelessness, deliberate destruction, or failure to provide regular upkeep and maintenance. The plan also has a coverage limit per item and is invalid if the broken item was installed improperly.

Why Renew? Your Appliances Are on the Older Side

Not even the most high-quality appliances and systems will last forever. Everything is bound to encounter problems eventually. The older your appliances get, the closer they get to the end of their life span. If items such as refrigerators, dishwashers, and built-in microwaves are more than five years old, it’s probably a good idea to renew the warranty.

The HVAC, plumbing, and electrical systems in your home should last longer. But if your home is a couple of decades old, and these systems are original, they will start to sputter soon. Purchasing a warranty can spare you from having to pay big bucks on repairs or new installations.

If you choose not to renew your warranty, start saving your money. Installing a new HVAC system might be as much as $10,000. Even buying a new fridge can cost as much as $2,500 or more. Servicing these items can be a few hundred dollars, perhaps approaching the $1,000 range.

Why Renew? You Don’t Want to Fix Stuff Yourself

Some people enjoy repairing appliances and other equipment. Other people have a natural ability for such work. If you don’t fall into either category, the thought of tinkering around with an appliance or the plumbing at home probably is not appealing. You can avoid this dirty work when you renew your home warranty plan.

When something begins to falter and stops working effectively, contact the warranty company. A technician will come out to assess the situation and determine what steps are next. This professional will then handle all aspects of the repairs — all at no cost to you.

 Why Renew? Money Is Tight

If you’ve used your home warranty before, you probably have seen how much money it can save you. You can get your money’s worth out of the plan with a single service call. For people who have a big budget and a hefty savings account, spending a few hundred or a couple of thousand dollars may not be a burden. But if you’re stretched thin financially right now, you may not be in a position to afford major repairs.

Renewing your plan is a smart move if you don’t have a lot of extra cash. Plus, if you have other big expenses coming up, such as the need to purchase a new vehicle, pay for medical expenses, or pay for a wedding, home repairs may be too much to handle. A warranty can eliminate these costs.

If you’re debating whether to renew your warranty, consider these factors. It may be best for you to move on without the coverage. But in many cases, it makes sense to have this protection. Talk to the warranty company today and see what you can do to continue your protection. Have peace of mind in knowing that you will not have a financial emergency when appliances break down.

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