How a Home Protection Plan Can Save You Money

Severance Home

Have you ever seen the movie The Money Pit?  Maybe it doesn’t qualify as “a classic” but this 1986 comedy starring Tom Hanks is hilarious!  In the movie, new homeowners struggle to repair a completely dilapidated home which ends up costing them more time and money than the home is worth.  Does this sound familiar?

As a buyer’s agent I encourage my clients to consider the benefits of a home protection plan before buying a home.  I am often successful in having the sellers pay for a one-year home protection plan for my buyers as part of a home purchase.  As an investor myself I can certainly attest to the thousands of dollars I have saved by purchasing a home protection plan with my investment properties.  Here are some of the benefits of a home protection plan.

Peace of mind for unexpected repairs

Whether you are a first time home buyer or an experienced investor, it is nearly impossible to predict when an appliance will fail or a pipe will burst.  A home protection plan provides you with the peace of mind knowing that you are covered if something breaks in your new home or investment property.

Affordable and flexible plans for several types of properties

Consider the average cost to replace a water heater, air conditioning unit, or electric range.  Is it fair to say that you will easily spend $600-$800 to replace a water heater?  A one-year home protection plan costs approximately $350-$450 depending on the type of plan, and the service call for a repair normally runs about $60.  Most of my clients would rather pay a $60 for the service call than several hundreds of dollars.

Reliable service contractors within the network

How much time do you normally spend asking friends for contractor referrals or searching Yelp reviews online to find a trustworthy vendor?  With a home protection plan, the home warranty company has already done the groundwork and has screened the contractors to include in their repair networks, so you can relax knowing that a licensed, professional contractor will take care of you.

The bottom line is that including a home protection plan with your home purchase can save you time and money, especially within your first year of home ownership.  There are several home warranty companies serving Northern Colorado and a couple that I’d like to recommend: First American Home Buyers Protection and American Home Shield.  Both of these warranty companies can issue a home protection plan without needing to physically inspect a property.

Remember, a home protection plan is not a substitute for your homeowner insurance policy.  For more information about the benefits of home protection plans or buying a home in Northern Colorado, give me a call or send me an email.  Cheers!

Water Damage

Richard Jensen About Richard Jensen

Realtor with Coldwell Banker Residential Brokerage in Fort Collins, CO. Helping clients buy and sell homes, relocate to Northern Colorado, and create wealth with real estate investments. NoCo transplant, avid hiker, leisure runner, amateur father, camera-happy photographer, convenience blogger, and willing to lend a helping hand.

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