5 Scenarios When You Should Renew Your Home Warranty
Key takeaways:
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Renewing your home warranty is advisable if your emergency funds are insufficient, helping prevent significant out-of-pocket expenses for unexpected repairs, such as HVAC issues.
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If you lack DIY skills or prefer professional handling, a home warranty ensures access to skilled technicians, simplifying home repairs.
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Positive experiences with local service technicians provide a compelling reason to renew, ensuring trusted professionals handle major repairs like HVAC installations or major plumbing issues.
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Owners of older homes benefit from renewing home warranties due to the higher likelihood of system and appliance failures, protecting against costly repairs and replacements.
According to a recent survey from ThisOldHouse, more than 76% of 1,000 responders said they were either very likely or somewhat likely to get a home warranty renewal in the upcoming year.
This survey indicates that an increasing number of Americans are seeing the value of signing up for a home warranty plan and deciding that it's beneficial enough for them to continue their coverage.
If you're wondering, “should I renew my home warranty,” we're here to help you make an informed decision. Let's review some of the main scenarios that you should consider if your coverage is about to expire.
Here's when you should consider a home warranty renewal
Not all financial choices are created equally. As a homeowner, we understand you must prioritize your budget. Whether you're saving for your next family vacation, a home remodel project or a big new purchase, sticking to your budget is crucial.
Here are some scenarios where renewing your selected home warranty plan can save you time and money.
1. When you need to avoid dipping into your emergency fund
If your home finances are tighter than you would like, renewing your home warranty plan may be a brilliant idea. According to State Farm, home maintenance reserves should be between 1% and 4% of your home's value.
If you realize that your emergency budget is much less than this amount, there's no reason to panic. Having a home warranty plan gives you some reassurance that you can avoid the burden of shouldering significant, unexpected expenses on your own. For instance, without a home warranty, fixing or replacing an HVAC system could cost you thousands of dollars. However, when you renew your plan and maintain coverage, you can avoid the stress of having to pay hefty, unexpected repair fees on your own.
A home warranty plan gives you the peace of mind you need so that when things break down, you'll know who to call.
2. When you're not an expert in repairs
When was the last time you tried to fix an appliance in your home? If it didn't go well, there's no reason to be embarrassed. While some people cherish the opportunity to try to fix a broken refrigerator, microwave, or washer and dryer, this isn't true for all of us. If you're not the handiest person, renewing your home warranty plan may be best.
With home warranty coverage, you can rest assured that you have a team of experts behind you to help care for your home repair needs. Your home warranty plan allows you to skip the complicated online repair tutorials and frustrating efforts to use tools you never have before. When something breaks down, contact your home warranty company and take steps to get a service technician to visit your home.
3. When you like the service technicians in your area
When you could improve at DIY projects and you have excellent service technicians in your area, it makes perfect sense for you to leave your appliance repair to them. If your experience with the service technicians near your home has been positive, this is a significant reason why you should renew your home warranty plan.
According to homesandgardens.com, some of the repairs that you shouldn't attempt to do on your own include:
- Installing a new HVAC system
- Repairs to your electrical system
- Major pipe repairs or replacements
- Major repairs on your central A/C system
Fortunately, your home warranty plan and coverage may cover these things. This means that when they break down, you can leave it to the trusted service technicians who are part of your home warranty company's network.
4. When you own an older home
Did you know that the median age of an owner-occupied home in the US is 40 years old? Aging homes also come with aging appliances and home systems, which increases the risk that things in your home will break down and stop working. According to the American Housing Survey, about 61% of owners of older homes started a home improvement project between 2019 and 2021, spending a median of $4,100 on all their home improvement projects.
When old appliances break down, having home warranty coverage can help protect you from being completely liable for expensive repairs and replacements.
5. When the warranty came with your recently purchased home
If you're a new homeowner, you’re probably looking for ways to save money after making such a huge purchase. If your home comes with a home warranty plan in place, this gives you a considerable advantage and helps you stay within your budget. If your warranty is about to expire, keep your budget from getting derailed by unexpected expenses.
Renewing your home warranty plan may be the wisest decision to help you save.
How to renew your home warranty plan
Now that we have looked at scenarios where you should renew your home warranty coverage, it's essential to know how to renew your plan.
Home warranty plans are typically annual agreements between you and the warranty provider. Often, they offer an option to auto-renew, which can protect you from potential lapses in coverage. Most providers also send renewal notices, and you should be able to call them and ask for more details on how the renewal process works for your plan.
When it is time for your home warranty plan renewal, it works similarly to an insurance policy. You will pay the same amount you paid to enact the plan, and if you opt to pay the entire yearly fee instead of paying monthly, many companies will give you a discount on the total you pay.
Additionally, most home warranty companies will give you ample warning of your upcoming renewal.
Consider updating your coverage
Knowing your renewal date is important for more than just making sure that your plan doesn't lapse. It gives you an opportunity to evaluate your coverage needs. As your home gets another year older, the risk of critical appliances and systems wearing down can also increase.
Additionally, if you added appliances that were not previously covered, you can add plan specifics to make sure these new additions to your home are covered.
Use your renewal option to discuss your home warranty provider’s coverage and ensure you have the coverage that best fits your needs and budget.
Renew your home warranty with Cinch Home Services
Whether you are renewing a plan or buying one for the first time, Cinch Home Services offers affordable, reliable plans.
With Cinch, you'll get excellent customer service, a network of service technicians you can trust and options that fit your budget and needs. To learn more about the different plans you can choose from, click here.
"The product being offered is a service contract and is separate and distinct from any product or service warranty which may be provided by the home builder or manufacturer."