How Much Could Maintaining Home Appliances and Systems Cost in 2014?
TotalProtect Home Warranty shares average cost of annual repairs and replacements
FORT LAUDERDALE, Fla. – (Feb. 28, 2014) – If a major home appliance or system unexpectedly breaks in 2014, do most homeowners know how much it would cost to repair or replace, and do they have the funds set aside? According to experts at TotalProtect, a home warranty company that aims to make home ownership easier, the answer is a resounding no and it could spell trouble for many in the coming year.
"Our research shows more than 60 percent of homeowners feel that an expense of more than $2,000 would be devastating to their household finances, yet the annual cost of repairs is often much more," said Steve Burnett, general manager and senior vice president of TotalProtect. "In addition to the financials, there is a great deal of stress that comes with finding the right service provider and trusting them to perform the job effectively and honestly."
According to data from the Bureau of Economic Analysis and a Bloomberg report, the average age of consumer durable goods is the highest since 1962. This means homeowners are keeping their appliances longer than ever before – an average of 5.3 years - increasing the chance they could break from routine wear and tear.
Will These Costs Break Your Bank?
"The best way to ensure financial stability is proper planning, said Emilio Escandon, CPA, principal-in-charge of the Northeast Region Tax Practice of national accounting firm MBAF. "Setting aside a designated amount each month so you are covered in the event of a major crisis is preferable as opposed to hoping for the best and then having to incur an unplanned expense. It's a healthy budgeting habit and provides peace of mind simultaneously."
"A home warranty is a great option for those who want to budget throughout the year and avoid a large, unplanned expense," added Burnett. "The truth is, things break. Homeowners should ask themselves, ‘can I withstand these costs?' If the answer is no, now's the time to put a new plan in place."
About Total Protect Home Warranty:
TotalProtect Home Warranty provides a full selection of reliable home management plans. Consumers can purchase home warranty services directly from the company at http://www.totalprotect.com/. In business since 1978 and headquartered in Fort Lauderdale, Fla., TotalProtect is a division of Cross Country Home Services.