Home ownership is a great American dream that comes with some many wonderful benefits. Home repairs are not one of those. If you’re handy, you may be able to fix most things yourself. If you’re not handy, you probably should have an emergency fund for those unexpected scenarios – like the air conditioning going out in July or August. You might also consider a home warranty service.

This is not the type of warranty that comes with your new home. It’s a renewable home service plan that provides discounted repair and replacement services for covered household appliances and other home repairs. The biggest question that you may have as a new or seasoned homeowner is, are they worth the money?

That depends on things like:

• The age of your home

• The repair in question

• The person you want to repair those issues.

Newer homes tend to come with warranties when you buy the house, and those typically last about 10 years. They don’t cover everything, but they usually cover most major repairs/systems, like plumbing and air conditioning. Owners of older homes on which the original warranties have expired are usually good candidates for monthly home warranty services.

The cost for these plans averages between $30 and $90 a month or $360 to $1,080 a year. That cost usually depends on how much coverage you want. You’re looking at the higher end of the scale if you want to cover all of your appliances, heating, a/c, and electrical systems. There’s also a service fee every time a repairman comes out, which ranges from $25 to $175, plus anything not covered by the home warranty. Every plan is different; contract terms and the type of coverage available vary, and most plans do not let you choose the repair company. They already have contracts in place with various contractors.

HomeAdvisor lists these as the average cost of repairs these days:

• Central air conditioner: $3,803 – $7,604

• Furnace: $2,801 – $6,762

• Water heater: $831 – $1651

• Appliance repair: $106 – $243

If you need major work done in your home, the home warranty could actually pay for itself, and then some. In some ways, it’s a gamble. You don’t know when your appliances are going to quit functioning properly, but you can be sure they eventually will. If you don’t have an emergency fund set aside for this, a home warranty could be a wise investment.

Whatever you decide, read all the fine print and read reviews of the companies you are considering before signing anything or paying for your contract. For large repairs and home updates, contact our loan department for a Home Equity loan.