We understand, and we are sorry to lose you. In an effort to improve, please tell us why you cancelled your policy in the first place, and why you have decided not to give us another chance.
A home warranty can be a wise investment that saves homeowners money on home maintenance and repair, but consumers need to find the right plan to maximize their savings. Part of determining the best plan is having a thorough understanding of all the costs associated with a given policy.
In this post, we’ll break down the costs that go into a home warranty policy to understand the average cost of coverage today.
For most home warranty plans, the upfront costs include a premium and a service fee. These are direct expenses. These costs will vary from plan to plan and depend on several factors. These include:
Given these variables, the average premium for a home warranty costs somewhere between $300 and $600 per year. Most companies allow for monthly payments, so the typical home warranty cost on a monthly basis is between $25 and $50.
These average basic home warranty prices do not include the service fee that’s due whenever the homeowner submits a claim. This could be $50 or $75 at the low end, but a service fee of $125 or $150 is possible, too. Again, it depends on the plan in question.
As an example, let’s examine the yearly cost of a home warranty in the middle of the price ranges above. That would mean an annual premium of $450 and a service fee of $100. Say the homeowner submits four claims in one year. That would mean the yearly direct expenses of the home warranty come to $850.
Depending on the repairs and services required over the course of the year, that $850 may well be less than what the homeowner would have otherwise spent out of pocket. If one of those service fees was to replace a $2,000 refrigerator, the homeowner would have saved a substantial amount of money. There are indirect expenses with some home warranties to consider, however.
Many warranty plans, like insurance plans, have a deductible associated with them. This could be several hundreds of dollars or more. There are also coverage limits to consider. Some plans will have a cap on the amount they pay out.
Let’s revisit out example from above. The homeowner spent $850 out of pocket on the yearly premium and service fees. They received a new refrigerator valued at $2,000. Let’s say the plan’s deductible was $500 and the coverage limit was $1,500. That would mean the homeowner paid $1,350 for the year—the premium, service fees, and deductible combined. The policy would cover the remaining cost of the refrigerator. That would meet the coverage limit, however, so the plan would no longer pay out for repairs for the remainder of the year.
In our example, the homeowner ultimately received a $2,000 refrigerator for $1,350, but that’s assuming he or she didn’t require any other home repairs or services.
The bottom line is there is a lot of variability in costs associated with home warranties. It’s important for homeowners to do their research, examine different policies, and weigh all direct and indirect expenses. Your research will reward you. The amount you spend on the right home warranty policy will be less than the average appliance repair cost.
Liberty Home Guard has worked hard to be the most consumer-centric home warranty provider in America. Get in touch with our team to talk through your needs and find a cost-effective plan that makes sense for you. You can request a free quote through our website. You can also call us at (833)-544-8273.
In this 2021 home warranty guide, we’ll go into the specifics of what our home warranty plans can cover. We’ll also share some information on how the home warranty process works.
While a home warranty is an excellent way to protect any home, Liberty Home Guard understands that there is tremendous variety in the specific needs and circumstances of American homeowners. What use, then, is a one-size-fits-all warranty policy?
A home warranty and appliance warranty are similar policies. People sometimes even use the terms interchangeably. So, which one is for you? In this article, we’ll give you the information you need to make the right decision.
More Americans are investing in home warranties to afford some level of protection for their major home appliances. Even the most luxurious kitchen and laundry appliances can malfunction or break down, and repairing or replacing them—especially if the manufacturer’s warranty has expir
As home warranties become a more popular investment for homeowners across the United States, many people previously unfamiliar with the service are wondering how home warranty coverage compares to traditional homeowner’s insurance. Understandably, homeowners are reluctant to purchase a home
Along with plumbing and electrical, the heating, ventilation, and air conditioning system is one of a home’s most critical infrastructural components. The effects of a failing HVAC system can be more severe than just discomfort in the heat or cold. An improperly ventilated or climate-contro
Some homeowners are surprised to learn that there are different categories of home warranties. Depending on the situation, one can purchase a buyer’s home warranty, seller’s home warranty, or even a real estate home warranty. All are designed to save you money and help you more easily
As home warranties gain in popularity, most people understand them as ways to protect your major home appliances, such as refrigerators, dishwashers, and washing machines. And that’s absolutely true! A home warranty is an excellent way to keep those machines in tip-top shape. But the possib
Life as a homeowner is expensive. Many homeowners are reluctant to take on additional costs unless absolutely necessary. As home warranty plans become more popular, many people find themselves asking the same question: Are home warranties worth the money?
GE, or General Electric, has been a familiar name in American households for well over a century. Given the company’s longevity and the breadth of their line of products, it’s likely that you have a GE appliance somewhere in your home.
In this article, we’ll provide an ov
Whirlpool appliances are common fixtures in homes throughout the United States and beyond. The company has earned a reputation for manufacturing quality refrigerators, dishwashers, washing machines, dryers, and more, but even the best mass-produced products can malfunction or break down sooner or
Smartphones, televisions, refrigerators, dishwashers—if it has an electrical component, Samsung probably makes it. Given the brand’s versatile line of products and volume of sales, chances are a Samsung product has found its way into your home.
While Samsung products are genera
Moving is one of the most high-stress events we experience. Fortunately, a home warranty can make the process of selling your home a little bit easier.
There are of course the standard benefits of home warranties. If the water heater suddenly starts acting up, or the garage door is on the&
Appliance repair costs are an unwelcome but inevitable part of homeownership. Daily use can wear down an oven, dishwasher, or other appliance more quickly than we might like. Fortunately, there are ways to mitigate the expenses associated with broken appliances. An investment in insurance on home
Most home warranty providers stipulate a mandatory home warranty waiting period before you can schedule a service call to your home. If you purchase a home warranty plan from Liberty Home Guard, the waiting period can be 30–60 days, depending on the plan you are enrolled in. This is fairly<
A home warranty is an excellent way to protect systems, appliances, and structures in your home, but there are limits to what a warranty plan will cover.
While every plan is different, home warranties typically cover general wear and tear. If home equipment is damaged for some other reason
High temperatures are a welcome part of summer if you have the opportunity to steal to the beach or pool. The heat isn’t so welcome when it means your home is hot and stifling, even after the sun has set.
An air conditioner is an indispensable amenity of modern life. For populations&
A home warranty is one of the most effective ways to protect your home. They ensure your home systems and appliances can be affordably repaired or replaced when something goes wrong, and they often go beyond the scope of homeowner’s insurance. For those just beginning to investigate home wa
An outdoor ceiling fan is a great addition to your home patio or deck. There’s the obvious benefit of cooling down your outdoor space so it’s comfortable in hot weather, but an outdoor ceiling fan is also an effective form of pest control. Fans keep flying insects at bay so you can en
A faulty appliance can be a homeowner’s worst nightmare. A broken range or oven can stop you from cooking in your own home. A refrigerator on the fritz can lead to an abundance of spoiled food. A busted air conditioner in the height of the summer means sticky, uncomfortable days and sleeple
A home warranty for multi-family dwellings or a home warranty for apartment building complexes can save landlords a significant amount of time and money.
A leaky roof is more than just a mild inconvenience. If water enters a home through the roof, it can damage systems and appliances within the home, invite mold, and compromise the home’s structural integrity. Homeowners should attend to a leak in the roof as soon as they notice it
Senior citizens often search for a place they can settle down in. They usually want to relax and live in peace during retirement and enjoy the luxuries of life on a relaxing Sunday morning.
As a result, they are making a significant investment in their current homes. One way to secure that
While home warranties are easy to find, don’t forget to read the fine print and understand the terms
Home warranties cover the maintenance and repair of appliances and major home systems like
Nothing feels better than enjoying a cool, inviting swim on a hot summer’s day right in your backyard