Cost savings and peace of mind with AC, plumbing and surge protection

As a homeowner in Texas, there’s one lesson you learn right away: Unexpected repair costs can add up fast. And there’s never a good time for a burst pipe, unresponsive air conditioner, water heater leak or electrical issue.

Knowing how to prepare for these home emergencies and the costs they lead to can be challenging. Homeowner’s insurance, home warranties and home protection plans are all options that can help you reduce the sting of an unwelcome surprise and sleep a little easier. But which do you need, and where do you start?

In this article, we’ll take a close, clear look at one of these safety nets: home protection plans. We’ll also quickly introduce you to AC/heat protection, plumbing protection and surge protection plans provided by Allied Warranty, available to Reliant customers in Texas. They’re great options to add to your monthly Reliant electric bill for extra peace of mind.

Let’s check out some choices.

What is a home protection plan?

A home protection plan can be your frontline defense against the unpredictable. Generally, it’s a service agreement designed to cover costs of repair (or sometimes replacement costs) to many major home system components and appliances, such as HVAC, plumbing and electrical wiring. Think of it as a guardian for your home for a few dollars a month.

Home protection plan vs. homeowner’s insurance  

While both are ways to protect your investment, a home protection plan and homeowner's insurance serve different purposes. Homeowner’s insurance is your safeguard against major catastrophes like fires, theft or natural disasters.

In contrast, a home protection plan focuses on the wear and tear of daily life, covering items that insurance typically doesn't, such as HVAC systems, plumbing and appliances.

Comparing home AC, plumbing and surge protection plan vs. home warranties

The terms "home protection plan" and "home warranty" are often used interchangeably, but there are differences between these offerings. Home warranties are traditionally term contracts that cover appliance and system failures due to age or normal use. Home warranties are often offered or transferred to homebuyers as part of their purchase.

If you’ve bought a home, a home warranty may have come along with the deal at no added cost. Oftentimes, after a year of no-cost warranty coverage, you’ll have the option to renew coverage for an annual fee. Or you can simply cancel.

Home protection plans, however, can offer more flexibility and customization in coverage, focusing on specific areas like plumbing, electrical or HVAC systems, and often provide additional services and benefits.

Types of home protection plans

Here are a few types of common home protection plans designed to help you safeguard against unexpected home repair costs.

• AC/Heat protection – coverage for your home’s central air conditioner and heating systems, which often includes seasonal or annual tune-ups
• Surge protection – a smart way to reduce the impact of repairing or replacing appliances and electronics in the event of a lightning strike or power surge
• Electric line protection – helps cover the costs of damage to wiring, breaker panels, sub-panels, breakers, internal switches and more
• Plumbing protection – can include coverage for interior and exterior plumbing, fixtures, valves, leaks, gas lines, sewer lines
• Water heater protection – repair and replacement coverage for gas and electric water heaters
• Bundled plans – AC/Heat, electrical and more essential protection all in one package

A quick look at potential repair costs

Deciding whether a home protection plan is worth the cost is a personal choice. Here’s a look at some typical nationwide home repair costs*

• Electrical repair – Installing a new outlet can run from $200 to $300, while replacing a breaker panel can cost over $2000.
• Surge repair – A lightning strike or unexpected surge can typically cost $500 to repair.
• Water heater repair – Homeowners pay an average of $600 and up to $980 per repair.
• Water damage – Burst pipes or a faulty water heater can lead to an average restoration bill of $3,300.
• Pipe replacement – Homeowners can expect an invoice of a several hundred up to over $2,000.
• HVAC repair – A wide range of costs is possible, with a $350 average per issue.

When compared to these potential home repair bills, a few extra dollars a month for a home protection plan may well be worth it.

How a home protection plan can help

When compared to potential repair costs, many home protection plans can be much more affordable.

For example, a basic AC/heat protection plan from Allied Warranty is less than $120 a year for $5,000 in annual coverage, including regular professional tune-ups. How about surge protection? Plans start at $6.99 per month, with coverage levels up to $4,000 per year. Compare these numbers to the potentially higher costs of even a basic one-time HVAC repair.

As a Reliant electricity customer in Texas, when you choose a home protection plan from Allied, we’ll add a few extra dollars a month to your electricity bill, based on the coverage you choose. You can also choose from a range of coverage amounts and combinations of plans that can help you save when compared to purchasing plans separately.

If you need a repair or if your plan includes regular tune-ups or checks, your service will be handled by licensed professionals. We even make it easy to change or cancel your coverage when the time comes.

Home solutions essentials from Allied Warranty

As a Reliant energy customer in Texas, it’s easy to bundle AC/heat protection, electric line protection and surge protection into one convenient, affordable and powerful protection package. When you bundle all three, you’ll save when compared to purchasing the plans individually. 

Find out more about Home solutions essentials

An investment in your peace of mind

Home protection plans, including HVAC, electrical, surge and plumbing protection, can be a convenient way to help manage the unforeseen costs and challenges of homeownership. They often bridge the gap left by homeowner’s insurance and home warranties, providing affordable coverage for the unexpected.

Investing in a home protection plan can mean investing in your home's future, helping ensure it’s comfortable, functional and safe for years to come.

Source:

*Sofi Learn, September 2024 “What Are the Most Common Home Repair Costs?”
What are the Most Common Home Repair Costs? | SoFi