Why a Home Warranty Is Always a Smart Investment

Why a Home Warranty Is Always a Smart Investment

Smart investments aren’t always easy to come by. Some people play the stock market which can be a gamble. Others sink cash into startups in hopes of seeing a lucrative return. However, that can be a bit risky, too, because if the businesses go belly-up, the investors are the ones who lose.

So, if you want a low risk investment with a solid return, consider a home warranty. There are many benefits to obtaining a policy by American Home Shield that makes it an intelligent investment.

Affordable Protection Against Unexpected Disasters

Sure, on occasion, warning signs occur before home systems fail, but more often than not, they don’t. Instead, things just happen, and homeowners are left to deal with the aftermath. For example, a galvanized pipe in the attic could burst without warning, flooding the downstairs.

Such an issue might call for a minor repair, or a total repipe of the house may be necessary. The first situation a person can probably pay for with no problem, but the latter could cost thousands of dollars, and that’s not an amount somebody can dig out from under the sofa cushions.

Basic home warranties typically run between $350 and $600 per year. When problems arise, policyholders usually have to pay service fees of $50 to $100 for each repair/replacement. As you can see, that payment is much more manageable than that $1000+ price tag mentioned above. Thus, perhaps the best reason a home warranty is a smart investment is that it can save you money when catastrophes strike.

It Could Help a House Sell

Home warranties aren’t only perfect for those buying houses. The policies can also come in handy for those selling properties. Sometimes, people have trouble getting the price they are asking for on their homes. They can also run into the issue of the place stagnating on the market. It could just sit on the market for weeks, months, or even years. However, a home warranty could make such problems disappear.

A Service Contract Industry Council study completed recently revealed that properties with home warranties sold for almost $2,500 more than those without them. Plus, the buildings sold about 16% faster than the others, too. Thus, figures like these show why getting a home warranty could be a smart move on a seller’s end.

Peace of Mind Comes Along With a Home Warranty

Another reason why it makes sense to invest in a home warranty is for peace of mind. Homeowners without emergency funds often go this route. That ensures they can afford to get items like refrigerators and stoves fixed or replaced when they break down. Without coverage, those fixes might not be in the cards immediately because they don’t have nest eggs to cover the expenses.

Those who aren’t very hands-on when it comes to home maintenance may want to consider warranties, too. Do-it-yourselfers tend to save themselves cash by fixing issues themselves. However, if a person isn’t very hands-on, that probably isn’t an option. Hence, if that describes you to a T, buying a home warranty could be a smart investment.

It Allows You to Budget Accordingly

Last but certainly not least, obtaining a home warranty is a smart idea because you’ll pay one low fixed rate each month. Then, you can budget accordingly and be prepared for when disasters strike. That won’t be the case if you wait for something to go wrong. Rather, you’ll need the money for repairs right there on the spot.

The reasons listed here barely even scratch the surface as to why a home warranty is a smart investment. There are many others, and after obtaining coverage, you’ll likely notice all the benefits for yourself. So, don’t delay any longer. Get your policy today and start experiencing the benefits.