The value of a home is the synergistic value of each of its parts. For a homeowner, this includes the foundations, structural framework, the aesthetics, and the internal systems and appliances. Each of these components adds value to the home. Home insurance is a prerequisite to protect against the elements, flooding and fires. Home warranties are insurance plans to guard against damage, wear-and-tear, and malfunctioning of systems and appliances. Home warranty plans are designed to save homeowners a bundle on repair and maintenance, and replacement of systems and appliances. According to numerous studies, the costs of typical home appliances are as follows:
- Rudimentary range – $350
- Induction cooktop – $2,500
- Dishwasher – $600 – $1,000
- Convection cooking models – $2,000
- Top Mounted Freezers – $350 – $600
- Single & double ovens – $700 – $3,500
- Bottom-Mounted refrigerators/freezers – $800 – $1,200
Appliances have a utility value, and if they are high-end items, they can also add real value to your home. Given that these items are in daily use, they are subject to significant wear and tear. This means that they will need to be replaced or repaired at some point or another. Typically, the first year of an appliance’s life is covered by the manufacturer’s warranty. This means that there is no need for home warranty coverage for a brand-new appliance. That extra $300 – $600 could just as easily go towards buying a brand-new dishwasher, range, microwave or other appliance.
However, once appliances get to the 4-year mark, they tend to be need repair and maintenance work. This is to be expected. In the absence of home warranty coverage, you could be looking at forking out thousands of dollars to replace or repair refrigerators that don’t keep food cold, dishwashers that don’t wash, or dryers that don’t spin. There are many potential negative situations that can arise, making it even more important to consider home warranty coverage for your systems and appliances.
Here are some important rules to contemplate vis-à-vis your appliances:
- Be sure to check the warranty on each appliance that you need repaired. Your credit card may even cover the warranty if it is a new item.
- If the appliance has given you at least half of its lifetime usage and the cost of replacing it is more than 50% of the cost of the appliance, consider buying a new appliance.
- If the appliance has electrical faults, and safety considerations, replace it rather than repair it.
- If the cost of the appliance is high, and the costs of repair are low, rather repair the appliance.
Home warranties provide peace of mind to homeowners in many ways. For a rather low annual fee, you can get comprehensive coverage for a wide range of systems and appliances in your home. Any number of factors could cause appliances to stop working, such as incorrect usage, power surges, overloading etc. Experts stress that it’s important to have some form of insurance for appliances, since most homeowners have insurance for jewellery, the home itself, their automobiles, and their health and well-being.
The absence of home warranty coverage can be thought of as a potential debt trap waiting to gobble up your emergency cash reserves. No home can function without a refrigerator, a washing machine, dryer, air-conditioning unit, or dishwasher for too long. Proper care and maintenance is needed to maintain the lifespan of these appliances, and unless you are a technical expert, chances are you will need assistance with your appliances from year to year. Home warranties offer peace of mind that homeowners really need.