Money may not buy happiness, but it can arguably buy safety, or at least the feeling of safety. According to a new BW survey, the majority of Americans with a home security system (88%) say it makes them feel safe.
The survey of more than 2,000 U.S. adults, conducted online by The Harris Poll, asked Americans about their home security systems, or lack thereof. We also asked them about home warranties and whether they have money set aside for home maintenance, to assess how safe they might be from taking on high interest debt in the event of an unexpected breakdown in their home’s appliances or systems.
Key findings
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Home security systems are a need for some; others opt out due to cost.
Most Americans with a home security system (85%) say a good system is a necessity for them. Of those who don’t have a home security system, a third (33%) cite the expense as a reason why. -
Some choose not to have a home warranty due to cost or savings on-hand.
Of homeowners who don’t have a home warranty, 33% say it’s too expensive and 25% say they have adequate savings to cover necessary repairs. -
Preventative maintenance isn’t a priority for many homeowners.
The survey found that more than 3 in 5 homeowners (61%) tend to fix or replace things as they break rather than keep up with preventative maintenance.
“Homeowners are weighing costs and benefits when they decide whether to buy security services and home warranties, and that’s admirable,” says Holden Lewis, home and mortgage expert for BW. “I just sold an inherited house with tons of deferred maintenance. It convinced me that it’s wise to keep up with maintenance and repairs. But keeping a home in good shape costs money and time, and people are busy. We put things off.”
If your refrigerator malfunctions, a warranty may cover repairs or replacement within the limits specified in the contract. Home warranties differ from homeowners insurance, which is designed to cover accidental damage rather than normal wear and tear.
While home warranties can potentially save money, they may not be suitable for everyone. According to a survey, 33% of homeowners without a warranty find it too costly, 25% have enough savings to cover repairs, and 23% believe home warranties are a scam.
Despite this, a significant majority of Americans (62%) would consider purchasing a home warranty if they bought a new home in the future.
A home warranty is most beneficial when appliances and systems are no longer under the manufacturer’s warranty. If your older appliances are prone to breakdowns and are not covered by existing warranties, a home warranty could save you money. However, if your appliances are new or still under warranty, a home warranty may not be necessary.
For some homeowners, self-insuring by setting aside funds for repairs may be a better financial strategy than purchasing a home warranty. It’s essential to consider the costs of repairing or replacing appliances and systems in your home before deciding on a warranty.
Preventative maintenance is often overlooked by homeowners, with many opting to replace items that break rather than repair them. By staying ahead of maintenance issues, homeowners can reduce costs and avoid unexpected repairs. Regular maintenance can prevent costly repairs and replacements in the future.
It’s recommended to assess the repairability of broken items before replacing them and to consider DIY options before hiring a professional. Being proactive about maintenance can save money in the long run and help prevent costly problems from arising. Regularly inspecting your home for minor issues and addressing them promptly can help maintain your home’s value and prevent major repairs in the future.
Using or relying on the information presented here carries inherent risks, and there is no guarantee of its accuracy or completeness. It is advisable not to base decisions on this article in relation to the future performance of BW or any of its affiliates or subsidiaries. Any statements that are not factual are forward-looking and come with uncertainties, as denoted by terms like “believes,” “expects,” “estimates,” “may,” “will,” “should,” or “anticipates,” among others. These forward-looking statements may significantly differ from the information BW provides to analysts and its actual operational and financial outcomes.