ExecutiveChronicles.com | What is a Home Maintenance Contract and Why Should You Care? | The average American spends close to $5,000 a year on home maintenance tasks. That doesn’t include the amount of time spent.
That’s also an average, which doesn’t include major replacements. A new HVAC system or roof can easily cost more than $10,000.
It’s hard to budget for those unexpected emergencies, which is why homeowners sign up for a home maintenance contract.
Is that the right move for you and your home maintenance needs? Read on to learn all you need to know about home maintenance contracts.
What Is a Maintenance Contract?
A home maintenance contract is an agreement between you and a vendor. The vendor agrees to provide regular maintenance services on a piece of equipment for a monthly or quarterly fee.
Maintenance agreements were largely seen in businesses. Businesses would invest thousands of dollars in equipment and try to budget for maintenance.
It would be incredibly difficult, so vendors responded with service agreements. They’re seen across all industries, from fitness to radio technology.
Homeowners have similar issues, and seasonal businesses like HVAC repairs have a steady stream of income during the year. It’s usually a win-win situation for service providers and homeowners.
Advantages of a Home Maintenance Contract
The main advantage home maintenance contracts have is that you save time. You don’t have to look up videos on YouTube to try to solve problems yourself and run to the hardware store for parts. It’s possible to waste an entire weekend on one simple repair project.
Home maintenance contracts give you predictable maintenance costs. You’ll be able to save money for larger repairs while knowing that the maintenance is handled.
These contracts focus on preventative maintenance. Service providers spot issues before they become major problems. That extends the life of the major components of your home.
HVAC maintenance contracts ensure that your system is efficient as possible. You’ll save money on your electric costs.
Tips Before Signing up for Home Maintenance
There are issues that come up that aren’t covered in the home maintenance contract. Be sure to read the fine print of the contract before you sign.
Your service contract may provide discounts for emergency services or waive travel costs for weekend and evening repairs.
Some service providers know that contracts provide needed income to their businesses. They may deliberately overcharge for service contracts. Research average prices in your area and get quotes from a few providers.
Check to see if your service contract has maximum coverage for repairs. An HVAC maintenance contract may have a limit of $2,000 on repairs. You’re responsible for anything over $2,000.
A Home Maintenance Contract Makes Sense
If you want to save time on home maintenance, you should get a home maintenance contract. There are many types of maintenance contracts that cover things like your roof, appliances, and HVAC system.
You’ll be able to budget for repairs and maintenance and enjoy living in your home. Be sure to read the contract and know what is and isn’t covered by the agreement.
Check out the Money section of this site for more financial tips and insights.