When initiating your retirement planning, the major item of concern is usually the expenses that you shall be incurring in your retirement and how you shall be able to keep them low. This is due to the fact that after retirement, your sources of income will reduce and your regular income will also decrease even as your cost of living increases. You will therefore need to adopt cost cutting measures that enable you to improve your efficiency while at the same time maintaining a high quality lifestyle as you approach your sunset years. Among the expenses that can trigger personal financial distress are huge one-off repairs and maintenance costs for your home and the energy consumption for heating your house and your water.
Using home warranties to curb home expenses
To gain control of your home expenses you will need to be proactive enough and look for best strategies to cut down those costs and keep them at manageable levels. One way to achieve that goal is through the use of home warranties that provide coverage to your home appliances and systems in case they breakdown. Unlike the traditional home insurance plan where you are covered for the normal insurable risks such as fire, floods and theft among others; under home warranty you will have specific items in your home such as your roofing, door bells, washers and tubs covered too.
Most of these items are used on daily basis and the risk of them breaking down is high. In addition, the cost of repairing these household appliances and systems is usually very high too. In some cases replacements may be required, hence forcing you to incur huge capital expenditures that your retirement income from your pension and other sources might not be enough to cover. Home warranty therefore provides the best alternative in being prepared financially to meet those home expenses as they fall due. With most home warranty companies like Choice Home Warranty charging monthly premiums ranging from USD 30 to USD 50, even the low paid and the retired individuals are able to afford these cheap home warranties.
Different home warranty companies however offer different packages to their clients; in terms of the items covered by their home warranties and their plan varieties. In terms of the items covered under the home warranty, some companies offer coverage for a combination of most of your home systems and electric appliances. In addition, they offer to cover other things like your pool and lawn sprinklers among other household items that are available. This differs from the other category of companies that offer to cover a combination of your major home systems and your appliances in the kitchen and the laundry area. This second category also include extra services such as pest control termite treatment and roof repair as part their comprehensive coverage under their home warranty contract.
In terms of the variety of plans offered, home warranty providers are always keen on segmenting their target clients so that they are able to reach them more effectively with premium rates that are aligned to their income levels. Regardless of your income level, you will always find a home warranty company that has a plan that fits into your income level and also provide adequate coverage to your home systems and appliances.
The most common market segmentation done by the home warranty providers when classifying their home warranty plans is the three tier segmentation. This is where the home warranty provider offers Bronze care for appliances, Gold Care for systems, and Platinum Care for everything. For clients who want to cover particular items only, these home warranty providers classify them under Optional Coverage. Another model used to classify the home warranty plans is the two tier segmentation such as the one offered by Landmark Home Warranty. Here you are given the option between taking a cover for Home Systems or Total Protection. In addition, you are also provided with the Optional Coverage package in case the two do not suit your unique house.
To be able to know the home warranty provider who best suits you, you will need to screen them through online home warranty review platforms that provide comparison data and independent reviews of the home warranty providers. Once you get the most suitable home warranty provider for you, you can thereafter go right ahead and sign the contract with them; and then enjoy your retirement knowing that at a fraction of the total cost, all your appliances and systems at home are covered and secure.
Posted by Yanira Farray on 12:31 pm, With 0 Reads, Filed under Economy, Personal Finance. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.