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How much the does home warranty cost and what will determine this cost

How much the does home warranty cost and what will determine this cost

Home warranty promises peace of mind in ensuring that you do not pay a lot of money when your appliance or a system such as heating and electrical need repair or replacement. However, the home protection plan comes at a cost in form of annual premiums and trade call fee.

What does home warranty cost?

To take a home warranty, you will need to pay an upfront yearly premium whose value depends on the type of home being covered, the items and the company offering the service. The premiums are in hundreds of dollars per year with a basic coverage going for about 350 to 500 US dollars. For an enhanced plan, you may have to add about 100 to 300 US dollars.If you want additional coverage for items that are not in the basic cover such as the swimming pool or a well pump, you will have to add an extra fee above the basic coverage.
There is also the trade call fee or service call fee. It comprises the amount you are required to pay every time a service provider comes to your house to assess a problem with your systems or appliances after you call them. The amount is between 50 to 75 US dollars and it is paid for every repair job. However, if you require more than one contractor such as an electrician and a plumber, you are required to pay a trade fee for each contractor.

How is the cost determined?

Warranty providers set their own premiums and trade call fees. The price set for the basic plan is different from that of the enhanced or extended plan. The basic policy covers a number of household appliances such as refrigerators, washing machines, ovens and systems such as heating and electrical. The extended plan covers additional items. If you have a guesthouse or any other separate structure, it may not be covered by the basic plan. However, structures such as garages are covered.The type of property also determines the cost of the home protection plan. For instance, the warranty price for a condominium is different from that of a town home. Other types of homes include duplex, triplex and single family dwelling.Houses that have square footage of above 5000 tend to have their residential service plan costing more than homes that have less than 5000 square feet. Other than that, the cost is usually not affected by the size of the home.

What to expect when you get a home warranty

Getting a home warranty does not mean that you will not spend any more money on your home repairs. It only means that you will spend less than if you did not have one. Remember there is the service fee that is paid for every visit. The company only covers the appliances and systems that are stipulated on the contract. This means that if the item is not in the agreement, because either it is not included in the coverage or the company does not cover it, then you will have to pay for its repairs.

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