On this weeks installment of #financialwellness tips, we’ll be continuing the topic of repairs and how to reduce their burden on your bank account. Last week we talked about saving up for those unexpected repair emergencies. There is another way to prepare for that repair…a home warranty!
As a home owner, you will (or at least should) have homeowners insurance, which covers the structure and personal belongings in the event of acts of nature, accident, etc. But what many people skip is the home warranty.
Home warranties generally cover systems (electric, plumbing, heating/cooling) and appliances. The cost of a home warranty can vary from $300 – $600+ (depending what add-on options you choose) per year. And if something breaks, instead of paying full price, you may only have a small co-pay.
The difference between homeowners insurance and a home warranty is similar to the difference between life insurance and health insurance. Every home owner should have both policies in place. Check out the article below for more details.