Many people have a home warranty and many rarely, if ever, use them. Home warranties sound like an amazing idea where you pay a small amount each year and your home repairs are covered. This sounds too good to be true and as many will testify, if something seems too good to be true then it generally is.
The Real Costs of a Home Warranty
Home warranties cost from as little as $500 year, some cost around $750 depending on your home and what you have covered. It sounds like a bargain, but then comes the small print. Some homeowners have succumbed to the peril of the home warranty and ended up paying the price. While you pay an annual premium there are rules when it comes to any servicing or especially repairs you might need and this is where the pain comes in.
The fine print of your home warranty
The fine print of many home warranties can often limit you of what you can repair and for what reason. Within the warranty you are often restricted to the contractors they have on file and very often this means you end up waiting for the repair and this is very frustrating. Furthermore, in many cases, when you have a repair done you pay an admin fee of between $75 and $100, if you look carefully this can equate to 20% of your annual premium. Growing numbers of homeowners are getting wise to home warranties and are instead looking to outsmart them… and winning!
Doing it yourself
DIY has long been the cheapest way to maintain or repair anything in the home, YouTube has become a valuable tool. But even when it comes to contractors, going it yourself allows you to shop around. For many Amercans the convenience of a home warranty is why they choose it but for savvy Americans who weigh up the fine print a home maintenance and repair fund makes much more sense and costs far less in the long run.
Saving for a rainy day
Home Warranty Providers play a clever game that knows the warranty will be rarely touched and they make money. By playing the game with them you can save the same amount you spend each year and eventually end up saving in more ways than one. Working harder, saving a little more and preparing for the day that appliance or roof will eventually need repair or replacement puts you on top. It is an old fashioned way of thinking but it worked for our grandparents and can work for you.
The Power of a Home Depot Coupon
When doing things yourself you can choose where to shop for spares or replacement items. One popular place is Home Depot, and you can release the power of a home depot coupon and save even more money on your repair or replacement item, something you can’t do inside a warranty. Maybe it is time you looked at creating an emergency home repair fund and begin outsmarting the warranty companies and put yourself back in control of your home.