Glad you asked! These days more and more home warranty companies are hoping to get your money in exchange for some amount of security that your broken appliances will be repaired for less when they need service. And all within your budget.
These warranty companies may seem to be betting against the odds that your repair bills will leave them a profit margin, but think again...The "odds" are heavily in their favor. They know the numbers only too well. And they never lose.
They don't get services from repair companies for less than you do. In fact, when we did work for them, we charged them even more for all the hassles of getting paid and waiting for our money. So how do they make money? By getting you to pay your repairs in advance, plus another percentage of each repair call when the service person comes. And if the repair needed turns out to be more than its worth, most have a "buyout plan" in their contract so they wont have to buy you a new appliance.
In fact, if you reason this out, you'll actually put the warranty company's profit back into your own account each year if you pay for repairs yourself. Meaning all your appliances will cost you considerably less to own in the long run.
And if you're concerned about budgeting, the simplest way is to open a separate savings account at your bank for free. Then transfer a few bucks per month for each appliance into that account. Over time, you'll soon see why home warranty companies are such a profitable business!
Always at your service.