Recently, we saw the housing market take a surprising turn, with an increase in homeownership over the last nine months. For example, according to Census Bureau data, new home sales jumped 43 percent in August compared with a year ago. But, many new homeowners remain unaware of the hidden costs of homeownership that can pop up after the papers are signed. Homeowners rarely think of the unexpected damage that might occur from leaks to plumbing issues until the worst case becomes reality with a hefty price tag.
Read on to learn more about some of those hidden costs and how, as a new homeowner, you can protect yourself against the unexpected.
What can go wrong?
From leaking pipes to damaged infrastructure, a lot can go wrong in a home, and the resulting costs can be shocking. From plumbing to electric and everywhere in between, we’ve seen how often disaster can strike and how easily the bills rack up. For example, we heard recent stories from Kathy F., who saw a burst water heater cause $4,000 in destruction, and Amanda T. whose small basement leak led to nearly $20,000 of damage that she was unprepared to pay out of pocket.
Without a warranty program, homeowners frequently find themselves solely responsible for paying these large sums. In response, many have depleted their savings, taken out loans, dipped into their 401k accounts and more to maintain access to plumbing, electricity, heat, AC and other necessities.
What’s the solution?
It’s critical to not only be aware of the often-unforeseen dangers of homeownership, but also be informed on your options to prepare yourself. Home warranty programs, such as those offered by American Water Resources, offer protection when disaster strikes in your home. As you consider home warranty programs to protect your most valuable assets, make sure to look for the following:
- Home warranty programs should save you money. Does the program cover those inevitable costly expenses for an affordable monthly rate?
- Home warranty programs should be one-stop shops. At American Water Resources, we work with networks of local contractors, so when you do call to file a claim, we can take the reins. Look for a program that will schedule repairs, provide customer service, manage billing and more.
- Home warranty programs should provide options. Whether you want to cover your plumbing, water line, power line or bundle them all, a provider should offer the opportunity to customize coverage. Everyone’s situation is different, and no one should be left unprepared just because the coverage was offered in an all-or-nothing manner.
There are a lot of hidden costs of homeownership, but encountering them shouldn’t make you choose between restoring an essential service and protecting your bank account. We encourage homeowners to take a deeper look at what they can do to prepare for the unexpected and check out local home warranty programs today.
Want to learn more about the home warranty programs offered by American Water Resources? Visit our website.