Saving money is important when considering the bottom line of your personal budget, just as it is with a small business. If you have a home,
These recommended amounts are relative to your life style as well, if your appliances are entry level you may be able to save on the lower end of the spectrum, if your style is
A home warranty is a service for homeowners or small business owners to help cover the
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If these amounts seem a little easier to fit into your budget, that’s exactly what they are designed for! It is rare that all of your appliances would go out at the same time, but having that low monthly cost provides peace of mind that if something were to go wrong, one thing or ten things, they are covered by your home warranty.
Types of Coverage
A home warranty is customizable some home warranties offer different tier levels of coverage depending on your needs. If your home has a pool or spa you can add additional coverage to include these in the plan. If you do not want coverage on something you can opt to have it excluded from the plan. These customizable plans can create a one of a kind plan just for your home or business needs. Obviously use is considered when providing coverage for businesses. If the business is
When looking at the two options for how to financially prepare for the unexpected expenses of home or business ownership, one of these two will fit the bill. As always consider the costs associated with each of the two choices. If you save $1,000-$9,000 for the repairs and maintenance of these appliances you can invest the money and earn interest. Without considering
If you then need to pull funds for the repair or replacement of an appliance, you need to build the savings account back up. For example: if your refrigerator breaks down and after a $100 service call they tell you it will be $350 to repair your fridge, you are faced with the decision of fixing it or replacing it. Fixing it will then cost you $450 with the repair and service call fee combined. Then after the repair you need to replace the used funds back into your savings account for the next possible repair or replacement. Thus adding the monthly savings back into your monthly budget. A second repair could happen before you build back up your savings account. This is a vicious cycle when having appliances and or home systems that need repairs.
If you use a home warranty to be prepared for the unexpected repair or replacement of the appliances or home systems, your monthly amount does not change by much. After the first couple of years your premium may increase just due to the expectation that it will soon be covering a repair or replacement, if it hasn’t paid for such an expense yet. Your costs could
While a home warranty has no cash value like that of