The Truth About Home Warranties And Are They Worth It?

When you buy a new home you always have the option of purchasing a home warranty that, theoretically, covers the cost of repairs to various appliances and other home systems. But are these home warranties worth it and what should you be aware of before you actually buy one of these?

Before I get into some of the nuts and bolts behind these home warranty products let me explain that I actually managed the extended warranty program for Circuit City Stores for a period of time and these home warranties are a very similar product. In addition, I've studied the economics of insurance before and home warranties are basically insurance policies. So I know a fair amount about the economics of home warranties.

A Home Warranty Is An Insurance Policy

When you buy a home warranty - and they start around $420 - you are basically buying an insurance policy. The reason this is important to recognize is that insurance companies are in business to make money and that means that they expect to make money on the average policy they sell, which means that on average the people who buy these policies will lose money. Buyers will most likely pay more for the policy than they receive in return over the life of the policy.

Then why would you ever buy an insurance policy? Because you are willing to trade off the certain cost for a very uncertain cost. The insurance company can play the averages game but many consumers cannot or don't want to play that game and they are willing to pay a premium for the certainty. This is especially true as it relates to health care where a catastrophic illness can cost over $1 MM.

But when it comes to home appliances and other systems what is the worst thing that can happen? Maybe you need a new air conditioner or a refrigerator that might cost you a couple of thousand dollars. So for people who can handle that type of expense out of the blue, there is no need for them to buy an insurance policy - they basically "self-insure" from their own savings. But if a new air conditioner would break the bank then you might want to consider getting a home warranty.

How To Beat The Home Warranty Companies At The Averages

There is one advantage that the homebuyer has over the home warranty companies. They know more about what is being insured than the warranty company does and this asymmetrical information allows them to make a better decision about when to buy the warranty than the companies can make about when to sell the warranty. In fact, the companies will pretty much sell a policy on any property to any buyer because they just can't afford to inspect every home before issuing a policy. But a buyer is going to be more likely to buy a policy when they can see that a home has been poorly maintained - e.g. a trashed short sale - and is, therefore, more likely to develop problems. That's what I did when I bought my short sale. I bought a policy from Home Warranty.

This asymmetrical information leads to a problem for the warranty companies called adverse selection - the tendency of these companies to get stuck with bad deals. Consequently, they have to raise their prices to offset this bias, which means that anyone who buys such a warranty on a well-maintained property is overpaying.

Beware The Exclusions

It's important to understand what you are really buying when you get one of these home warranties. The contract is full of fine print which excludes a huge list of situations that you would reasonably expect to be covered such as:

  • Improper installation
  • Plumbing fixtures
  • Whirlpool jets
  • Ejector and sump pumps
  • Doorbells associated with intercom systems
  • Alarm system repairs above $400
  • Security video equipment
  • Central vacuum cleaner repairs above $400
  • The remote components of an automatic garage door opener
  • Ice and water dispenser in a refrigerator. In fact, it's not even clear if they cover the ice maker in the standard policy. I don't think they do.

That's just a small sample of my BestWayInsurance Home Warranty contract. The entire list is enormous. But you can buy a higher cost policy that will cover some of these excluded items. Like I said...these guys are in business to make money.

Beware The Pre-Existing Condition

Just like in healthcare these home warranties have pre-existing condition clauses. When you call in a claim they will ask you a series of questions and if your answers indicate that you don't know for sure that this item ever worked properly since you owned the home then they will simply deny the claim. Now you can buy a premium plan that will cover unknown pre-existing conditions but, even then, if they somehow determine that you knew the item wasn't working when you bought the plan they will deny coverage.

Beware The Deductible

Just like in healthcare you have to pay a deductible for every claim made. On my Home Warranty contract, it's a trade call fee of $100.

The Warranty Company Does Not Guarantee All The Work Performed

This one really burned me up. The home warranty companies contract with various repair companies to actually perform the work and they will make sure that your reported problem is ultimately solved. However, apparently, and once again I can only speak from my experience with Home Warranty if the contractor's work directly or indirectly damages your home or appliance you are on your own to work out the issue with the contractor. BestWayInsurance will do nothing to help you resolve the issue other than note a complaint in their system for future reference in dealing with the contractor even if BestWayInsurance sent out an unqualified contractor in the first place.

For instance, we had a gas leak in our dryer and BestWayInsurance sent out Bender's Plumbing of Addison to fix it. They fixed the leak but after they left we discovered that the dryer was no longer venting outside. Bender's Plumbing was dispatched again to fix this problem but incredibly they decided it wasn't their problem. Reluctantly we paid an appliance repair guy $80 to fix it and he explained that when Bender's moved the dryer the vent hose disconnected and was then crushed as the dryer was moved back in place. If Bender's had known what they were doing they would have opened a panel on the front of the dryer to reconnect the hose and pull it out of the way as they slid the dryer back in place.

Bender's initially promised to send me a check for $80 but it never arrived and then they wouldn't return my phone calls. And even though BestWayInsurance should never have sent out a plumber to do an appliance repairman's work they refused to help resolve this dispute.

Your Realtor Gets A Commission For The Sale Of A Home Warranty

And this is a lesser concern because it does not involve a lot of money but your realtor does get paid a small commission to sell a home warranty. It's around $70 I think, which is such a small amount that my company rebates it back to our clients to avoid any conflict of interest however small. But you should still be aware of this because some realtors will do anything for a buck.

Life Insurance for Business Owners

Are you a small business owner or a co-owner of a company? Among the many days to day responsibilities you encounter, you also are responsible for your family. You need to protect your family at home as well as your business family.

Life Insurance for Business Owners

Life insurance for business owners can help lay a proper financial foundation by protecting your current and future business. Let’s look into the different situations that life insurance can benefit your company or business.

Collateral Assignment Life Insurance

A life insurance policy can be used for business owners that require cash to begin a business or buy a company. Typically, when you buy a life insurance policy you will name a beneficiary. This beneficiary has an insurable interest to the insured. This beneficiary can be a family member, spouse or a business partner or company. When you’re getting a life insurance policy for an SBA loan or bank loan – it is the same overall concept. You have to assign a primary beneficiary, however- the lender will be named the collateral assignee. If you were to die the lender will get the balance of the loan from the life insurance death benefit. Your primary beneficiary will then get the balance once the loan is paid off.

What would happen in the event that you didn’t use a collateral assignment? If you had the lender the sole beneficiary, the lender would then collect one hundred percent of the life insurance policy’s death benefit. BestWayInsurance life insurance can help you avoid that.

Executive Bonus Plan Life Insurance

With an executive bonus plan, you’re using a compensating method for specific employees by paying the life insurance policy premiums on the key employee’s life. The employer or business owner will pay for a benefit that is owned by the executive or employee. There are benefits to both the employer and employee when it comes to Executive bonus plans.

For the employer, there is no administration needed, the plan is simple, and costs are tax deductible. For the employee, the executive is the owner of the life insurance policy and of the cash values. The policy is not lost if they were to change employers. The death benefit can be income tax free.

Key Person Life Insurance

The purpose of key person life insurance is pretty basic:

A company buys a life insurance policy on a key employee, business owner or executive who is very important to the business. The company will apply for a life insurance policy, pay for all of the premiums and own the policy. The business is also the beneficiary of the life insurance policy. If the key person were to die, the company will receive the death benefit of the key person. The tax-free benefit can be used in a variety of ways. It can help make up for company sales as well as lost earnings. The benefit can also help cover some or all of the costs of finding a good replacement and provide proper training.

What would happen if the key person were to die unexpectedly? Could your business move forward without a hiccup? The life insurance death benefit can provide liquidity quickly so you can provide ongoing financial demands.

How about securing loans for your company’s growth? Sometimes loans are needed to help with the financing opportunities of expanding a business. Your lender will often seek collateral as security and the death of a key employee may pose too much of a risk to your lender. It is very common for a lender or bank to require key person life insurance on anyone that is vital to the life of your company.

One of the most important uses of key person life insurance is when there’s a need to buy out a deceased co-owner's interest in a company. There are some unfortunate situations that can arise if a key person policy isn’t in place. How would the deceased co-owner's family receive their share of the interest in the business without selling it off? How would the surviving owners pay off the dead owner’s family in order to avoid becoming partners with them?

Buy Sell Agreement with Life Insurance

When you’re an owner of a company or a partner in a business, a buy sell agreement can be an excellent way to avoid uncertainty. When a partner or company owner dies, the life of the business and it’s future are uncertain. With a buy-sell agreement, you can make sure you’re helping to protect you and your company from the unexpected or unintended transfer of ownership. By considering a buy sell agreement and funding it with life insurance, you can provide protection and extend the life of your company.

The buy sell agreement will aid the sale and purchase of a company based on a specified event. The most common events are retirement, disability or death of the owner of the company. The buy-sell will lay out specifically who will get what with regards to shares of the business. It will define how much and it will guarantee the buyer at a predetermined price. The buy-sell agreement also allows for the purchasing of company shares from the estate of the surviving family. Lastly, a buy-sell can be beneficial with creditors. Creditors will most likely be much easier to deal with when they can see that a company has protection established to make the loan decisions easier.

Business Succession Planning

Life insurance plays an important role as the driving force in succession planning. It is key that you have adequate coverage for you and your business partners. You need to get a formal valuation of your company and make sure that your coverage is updated with the growth of your company. Succession planning is a very important topic and can be vital to your business. If you let the estate plan dictate how your company transitions, it may cause significant issues. There are many companies that have had disastrous results due to poorly designed succession plans. Just ask the Robbie family and the Miami Dolphins.

Get Started

If you’re ready to get started, make sure you work with the following 3 resources:

  • Attorney
  • CPA
  • Life Insurance Broker

You’ll need experts in each of these areas in order to secure the best strategy and policy for your business succession plan.

How to Get Quotes and Apply

Once your plan is in place you can begin shopping for your life insurance policy. Simply use the free quoter on this page to get an idea of rates.

However, the best way to secure coverage is to have our research customized quotes. You can simply contact us at BestWayInsurance.com.  We’re independent and licensed life insurance agents. We’ll find you the best policy at the most competitive price from dozens of top rated life insurance companies. Once we find you the lowest rate, we’ll help you apply conveniently online or over the phone. We’ll help you from start to finish.

Making Home Warranty Comparisons


 Home warranties take the hassle out of home ownership and give you peace of mind by protecting your family from unexpected and costly bills when major systems or appliances fail. However, coverage options vary widely from provider to provider and choosing the right plan can be tricky. Here is a checklist that details what to look for in a home warranty and how you can choose the provider that's right for you.

Initial Considerations

  • Make a list of all your appliances and systems. Determine which ones are critical to your family's needs, are costly to repair or replace or are at risk of breaking down.
  • Home warranties are designed to fill in the gaps left by homeowners' insurance, but there is potential, however small, for some overlap. Also, some of your appliances may be covered under other warranties. Check and compare these policies so that you're not paying twice for the same coverage.

Coverage

  • Verify which home warranty providers offer coverage in your area. Then narrow your search based on your priorities. Some providers offer fixed plans that cover a list of appliances or systems, some specialize in only a few specific ones, while others offer the option to customize your home warranty benefits.
  • Understand the various levels of coverage. You may find that the advanced coverage offered by one provider is equivalent to the standard coverage offered by another.
  • Take note of the pre-conditions and limitations to any coverage under consideration. Many plans won't cover appliances or systems with pre-existing conditions or costs that arise from improper installation or maintenance.
  • Are you planning to sell your home? Ask if the home warranty is transferable.

Cost

  • Determine the annual cost and what's included. The cost of home warranties varies significantly depending on where you live, the kind of home you live in and what you choose to cover. Some plans include additional services, while others have a more scaled-down offering.
  • Ask about service fees or deductibles. Home warranties take care of much of the heavy lifting when it comes to repairing costs, but there still may be additional fees, such as one for each home visit if something breaks down. Compare any added costs.
  • Establish whether there are limits on the maximum amount a provider will pay for repairs.

Service

  • Easy access to a service network is one of the biggest home warranty benefits. With just one phone call, you can schedule a home visit for a wide range of maintenance issues. Investigate how many in-network contractors service your area and make sure there are a variety of specialties represented.
  • Inquire about the provider's screening process and selection criteria for their contractors.
  • With some companies, the service provider may be different from the company selling you the home warranty. Make sure you can find contact information for the company that will ultimately be servicing your warranty.
  • Ask about the provider's service level agreements, average response time and claims process. Many providers offer the convenient option of requesting service and filing a claim online, but it's also good to know that you can reach a representative when you need one. Compare the level of follow-up documentation each company may require.

Reputation

  • Check out consumer ratings and reviews to learn about other customers' experiences. You want to make sure you choose a reputable provider.
  • Peruse a company's social media and online presence to help confirm its legitimacy and level of consumer focus. Is this a company that places the customer first?
  • Verify that the home warranty providers you're considering are properly licensed if you reside in a state that requires it. These requirements vary by state.

Can I Buy Life Insurance on My Significant Other?

Americans are waiting longer to get married.  This doesn’t mean that today’s couples love each other less than generations past.  Most couples are postponing marriage because they want to be financially secure first.  Part of being financially secure is owning life insurance.

It’s very common for married couples to purchase life insurance on one another or name each other as beneficiaries of their policies.  When you buy life insurance on someone, you need to have consent and insurable interest.  Insurable interest exists when one person financially benefits from another person living.  Essentially, they are worth more to you alive than dead.  With married couples, it’s obvious that they have an insurable interest in one another.  They live in the same house, both contribute toward bills and maybe raising children together.

The life insurance industry changes and adapts to keep up with societal norms.  According to the U.S. Census Bureau, the number of U.S. adults who are unmarried yet cohabitating has risen 29 percent since 2007.  For couples that aren’t married but want to buy life insurance on one another, you may need to check a few more boxes, but it isn’t as difficult as it used to be.

Buying Life Insurance on Your Fiancé/Fiancée

Being engaged shows a higher level of commitment and financial dependency than dating – in the eyes of the life insurance company.  It’s typically not an issue for engaged couples to buy life insurance on one another.  Some life insurance companies will want to know that a wedding date is set, but this isn’t always required.

How to Buy Life Insurance on Your Significant Other

If you’re looking to get life insurance on your significant other or name them as the beneficiary of your policy, BestWayInsurance can help.  We have helped many married and unmarried couples purchase life insurance.  Start the process by running a free and anonymous term life insurance quote.

If you want to buy life insurance on your significant other, be sure to complete the online quote and application using their information.  (Remember: You can always contact us directly if you want one-on-one assistance.)  After running quotes, when you’re ready to apply you will be brought to a page that looks like the screenshot below.

You can see it asks that you fill out the form with the insured’s information (your significant other.)  The life insurance company will need to personally contact the insured (your significant other) to verify application information and, if necessary, to schedule the medical exam.

Remember, you can’t just buy life insurance on anyone.  Consent is required.  If you believe life insurance is important for your significant other, but he or she doesn’t agree, you can’t just buy it on them anyway without their knowledge.  If you’re having trouble getting them to understand the importance of life insurance, check out our blog post How Do I Get My Spouse to Buy Life Insurance?  There are some tips that may be helpful.  We look forward to helping you and your loved one buy life insurance.

6 Holiday Headaches You Can Control with Home Warranty

The holidays can be both joyous and stressful. With a home warranty, unexpected repairs can be fixed by reliable technicians. Save yourself a headache!

While many of us look forward to the holiday season all year, it can also be a time of great stress. In between all that cookie-baking and gift-buying, it can be challenging to get someone to fix your broken dishwasher or HVAC system. Fortunately, there’s a solution for any unexpected breakdowns that might put a damper on your holiday spirit: a home warranty plan.

home warranty is an excellent way to protect your home from unforeseen and unexpected expenses. The Home Warranty Plan is a one-year service contract for the repair or replacement of covered home system components and appliances that typically break down over time.

Take a look at these five common holiday season headaches that can be easily managed with an Home Warranty Plan.

1. Finding reliable help around the holidays

It can be just as challenging to find reliable home-repair help during the busy holiday season as it is to get that Thanksgiving turkey just right. With a home warranty plan, you’ll have access to industry-leading expertise 24 hours a day, 7 days a week, 365 days a year. BestWayInsurance will find the right licensed personnel and eliminate the need for you to locate qualified help during the busy days leading up to and during the holidays.

2.Unforeseen expenses 

Repairing something as major as your home heating system could cost you thousands of dollars. Such a huge expense can be stressful at a time when you’re already spending money on gifts, food, decorations and other miscellaneous holiday expenses. But with a home warranty, you’ll only need to pay the monthly fee along with a trade service call fee, which is a fixed amount that's easy to plan for.

3. Dealing with insurance companies

With a warranty plan, you can skip the whole process of filing claims and deal with insurance, and spend that precious time shopping, wrapping gifts, cooking delicious meals, or decorating your home with family and friends.

4. Playing host with a broken appliance

A broken dishwasher or refrigerator can really put a damper on your holiday festivities. A home warranty plan offers an expedited repair process on covered items. You no longer have to worry about a crisis caused by appliance or system breakdowns at a time when your house is swarming with guests.

5. Paying the full cost of repair or replacement

In the event of a breakdown, insurance usually reimburses the value of the item minus depreciation. This means you will not be reimbursed the full amount paid at the time of purchase. With a warranty plan, you won’t have to pay for the actual repair or replacement of covered items, and your contract will cover repair or replacement of covered items regardless of age, make or model.

6. Not enough time to coordinate home repairs

Finding reliable help that suits your budget, following up and replacing parts all involve a considerable time investment. Since the costs associated with repair and replacement are so high, it is not possible to skimp on the research and effort needed to get a satisfactory solution. A warranty plan will save you time when you need it the most this busy holiday season.

Blood Cancers and Buying Life Insurance

 

According to the American Society of Hematology, blood cancers affect the production and function of your blood cells and end up preventing your blood from performing many of its functions, such as fighting off infections or preventing serious bleeding.  Approximately every three minutes, one person in the U.S. is diagnosed with a blood cancer.  September is both Life Insurance Awareness Month and Blood Cancer Awareness Month.  In this post, let’s discuss the different types of blood cancer and how these conditions can affect buying life insurance.

What are the different types of blood cancer?

There are three main types of blood cancer: leukemia, lymphoma, and myeloma.  An estimated 1,290,773 Americans are either living with, or are in remission from, leukemia, lymphoma, or myeloma.

Leukemia – cancer of the body’s blood forming tissues.

  • Mainly affects bone marrow and the lymphatic system
  • Usually, affects white blood cells – the infection fighting cells
  • There are many types of leukemia

Lymphoma – cancer of the lymphatic system.

  • Affects the lymphatic system – the body’s germ-fighting network – which includes the lymph nodes, spleen, thymus gland, and bone marrow
  • There two categories: Hodgkin lymphoma and non-Hodgkin lymphoma

Myeloma – cancer of plasma cells.

  • Plasma cells are white blood cells that produce disease- and infection-fighting antibodies
  • Cancerous plasma cells release too much protein and can cause organ damage
  • Cancerous plasma cells can also crowd the normal cells in your bones and weaken them

How does leukemia affect buying life insurance?

Leukemia can be either acute or chronic.  Chronic leukemia progresses more slowly than acute leukemia, which requires immediate treatment.  There are five types of leukemia: acute lymphoid leukemia (ALL), acute myeloid leukemia (AML), chronic lymphoid leukemia (CLL), hairy cell leukemia, and chronic myeloid leukemia (CML).  ALL is the most common form of childhood leukemia and AML and CLL are most common in adults.

Although individuals who have been diagnosed with leukemia generally cannot get preferred life insurance risk classes, that is Preferred Plus or Preferred, once treated with no recurrence, individuals can be considered for Standard life insurance rates.  Risk classes are dependent on the type of leukemia, your age at diagnosis, and how long it has been since completion of treatment.  The more years that have passed since treatment, the better your chances are for qualifying for Standard or Standard Plus.

Risk Classes
Preferred Plus
Preferred
Standard Plus
Standard

If you do not qualify for standard risk classes, you may be table rated and/or be required to pay a flat extra.  A table rating typically means you will pay the standard prices plus a certain percentage.  A flat extra is an additional fee that cushions the risk for the insurance carrier.  A flat extra can last the entire life of a policy or just a few years.

Table Rating
(alphabetical)
Table Rating
(numerical)
Pricing
A 1 Standard + 25%
B 2 Standard + 50%
C 3 Standard + 75%
D 4 Standard + 100%
E 5 Standard + 125%
F 6 Standard + 150%
G 7 Standard + 175%
H 8 Standard + 200%
I 9 Standard + 225%
J 10 Standard + 250%

Let’s take a look at a few examples.

Example 1

 

Jane Doe was diagnosed with acute lymphoblastic leukemia (ALL) when she was 8 years old.  She is now 30 years old and it has been over 20 years since treatment was completed.  Jane is a non-smoker and aside from her history of childhood cancer, she has a clean bill of health.

She applies for a 30-year $500,000 life insurance policy and is approved at Standard Plus.  Her monthly premium payments will be $50.

Example 2

 

John Smith was diagnosed with acute myeloid leukemia (AML) when he was 18 years old.  Part of his treatment was a bone marrow transplant.  He is now 32 years old, does not smoke, and it has been 13 years since treatment was completed.

He applies for a 20-year $500,000 life insurance policy and is approved at Table B.  His monthly premium payments will be $60.

Keep in mind that no life insurance company underwrites the exact same way.  (Underwriting is the process of evaluating an application and determining a risk class.)  Some will be stricter with leukemia than others.

How does lymphoma affect buying life insurance?

There are two categories of lymphoma: Hodgkin and non-Hodgkin.  The difference between the two is based on the type of cancer cells present.  According to Cancer Treatment Centers of America, Hodgkin lymphoma is rare, accounting for about .5 percent of all new cancers diagnosed.  Non-Hodgkin lymphoma is more common being the seventh most diagnosed cancer.

In the majority of cases, applicants with a history of lymphoma will be assigned a flat extra for the first few years, unless a good number of years (like ten) have passed since treatment.

Let’s take a look at an example.

Example

 

John Doe is a 54-year-old male, non-smoker, applying for a 20-year $250,000 term policy.  He was diagnosed with stage 3 non-Hodgkin lymphoma five years ago.  He went through chemotherapy that same year and continued preventative treatment for two years following.  There has been no sign of recurrence.  He gets check-ups once per year.

John is approved at Table B with a flat extra of $15 per thousand for five years.  Here’s what all that means.  John is getting $250,000 in coverage, so to calculate the flat extra you multiply 15 by 250.  John will have to pay an extra $3750 per year on top of his normal premiums for five years.  Once year five is over, his premiums will drop to the regular Table B premium which will be $140 per month.

Again, no life insurance company underwrites the same way.  There are insurance carriers that would decline John outright.  This is why working with an independent agency like Quotacy is beneficial.  We have contracts with multiple A-rated carriers, so your chances of being approved are better.

How does myeloma affect buying life insurance?

Myeloma has different forms, but 90 percent of people who have been diagnosed with myeloma have multiple myeloma.  It’s called such because it affects several areas of the body versus just one site.  There is currently no cure for multiple myeloma, so life insurance approval may prove difficult.  Unless you have had a bone marrow transplant, an applicant diagnosed with multiple myeloma will typically be declined for life insurance.  Myeloma is, however, the least commonly diagnosed type of blood cancer.

Plasmacytoma and localized myeloma diagnoses, these are forms of myeloma in which cancer cells are found in only one site, have higher chances of life insurance approval.  Standard rates are even possible if enough years have passed since treatment.

If you have a history of blood cancer, don’t hesitate to apply for life insurance.  Applying for life insurance is free and there is no commitment to buy.  Here at Quotacy we have access to many life insurance carriers and will help to get you approved for coverage.  Start out by using our term quoting tool to run as many quotes as you would like – no contact information required.  We look forward to helping you get life insurance.

10 ways to save money around the house



Have you ever considered how many ways you can save money around the house? Here are 10 of them:

1. Unplug your electronics at night
According to the U.S. Department of Energy, the average U.S. household spends about $100 per year to fuel appliances left on standby mode. Save some money by plugging your devices into power strips and switching them off before bed.

2. Collect spare change
That loose change you find around the house can really add up. Start collecting coins, and then take them to the grocery store to exchange for dollars at the end of every month.

3. Use what you already have
Instead of going on a shopping spree every time the refrigerator seems bare, browse through the pantry and eat the items you already have.

Browse your pantry before making that emergency trip to the grocery store.

4. Start clipping coupons
If you collect the newspaper and have time to set aside on a Sunday morning, start clipping coupons. But don’t just use them to buy something because it’s on sale and seems like a great deal – only make the purchase if it’s an item that won’t go to waste.

5. Grow your own herbs and vegetables
Why buy herbs and vegetables when you can grow your own? Even if you don’t have room for a full garden of veggies, U.S. News & World Report said you can likely find enough space inside or outside to plant herbs. Try growing your own dill, basil and mint to save money and spruce up your dishes.

“Baking soda and vinegar can sanitize most of your appliances.”

6. Clean with baking soda
Who needs expensive cleaners when you have baking soda? You can replace most chemicals when you mix a natural solution of baking soda and vinegar. The combination can clear out a clogged drain, remove dirt and grime from your kitchen sink and sanitize most of your other home appliances.

7. Use a programmable thermostat
By using a programmable thermostat, you can set your heating and cooling systems to turn down when you’re gone for the day. The Environmental Protection Agency said this update can save you up to $180 every year in energy costs.

8. Consider streaming
With all of the options you have for online streaming nowadays, you might want to give it a try. Consider lowering costs by joining , two options that you can access on your laptop or other connected devices.

9.  Seal your windows and doorways
By sealing your windows and doors, the EPA estimated that you can save about 15 percent on heating and cooling costs every year. Consider adding insulation in the attics and crawl spaces, and use caulking to seal any cracks in your window and door frames.

10. Invest in a E-Exchanger Home Warranty
What happens when one of your heavily used appliances breaks down? You can’t just avoid getting it repaired or replaced. But that doesn’t mean you’ll have to put down an entire paycheck to get it up and running again. When you invest in a E-Exchanger Home Warranty, you’ll receive a plan that helps cover the cost of repairs or replacements in your major appliances and systems. With a home warranty, you can rest assured knowing you won’t have to hand over an arm and a leg when an issue occurs.

Do Home Warranties Cover Plumbing?

Let’s face it; plumbing issues stink! Plumbing is one of those home systems we tend not to appreciate until there’s a problem with it. They can occur without any warning making for an unpleasant surprise that you have no choice but to address immediately.

Plumbing problems aren’t just unpleasant; they can also be expensive. Not only does the issue itself needs to be remedied, but also leaked water can cause several residual issues such as floorboard rot, drywall damage and mold, among others.

Related: A Guide To Leaks, Clogs, And Other Plumbing Issues You Can Fix

The average cost to hire a plumber for a typical job ranges from $160 to $430. Plus, plumbers often charge an additional premium to come out on evenings or weekends. The cost of parts for the repair can vary widely, especially in older homes where replacement pieces are harder to find.

What Do Home Warranties Cover?

If you’ve been asking yourself whether you should invest in a home warranty, the first step is to look at what’s covered under the warranty. Each plan is different and coverage can vary.

BestWayInsurance Home Warranty plan covers the costs of repairing or replacing more than 20 major appliances and home systems, including plumbing. There are flexible plans that allow you to choose the best fit for your family’s needs and you can even build your own custom plan so you have the exact coverage you want.

Do Home Warranties Cover Plumbing?

Generally speaking, home warranties do cover plumbing when issues result from normal wear and tear. Not every plan is created equally, though, so it’s important to look at what exactly is covered, especially if you already have a contract. Some of the common plumbing troubles covered by AHS include:

  • Leaks and breaks in the water, gas, drain or vent lines
  • Faucets, shower heads, and shower valves
  • Built-in bathtub whirlpool motors, pumps, and air switches
  • Clearing sink, tub, shower and toilet stoppages

Be sure to check the yor contract for more details.

Give Yourself Peace of Mind

Unfortunately, plumbing issues are inevitable in any home. Since the best plan is to be prepared, you can ease your stress by giving yourself the gift of an American Home Shield plan.