Deciding whether or not to purchase any kind of warranty often comes down to a simple question: is it a sound investment? Is the thing that you’re trying to cover, whether it’s a home or an appliance or a car, valuable enough to make payments to ensure that it’s covered?

That’s also the question that most people ask when they’re deciding whether or not to purchase a home warranty. And while there are rare circumstances when it may not be the best choice, more often than not home warranties are a solid investment. Let’s take a quick look at the numbers:

Home warranties cost anywhere between $300 and $600 a year. On average, homeowners spend about $300 a month on home maintenance. Now, a portion of the $300 a month spent on home maintenance likely goes towards things not covered by a home warranty (new exterior paint, for example). But, even if only a small portion of that amount goes towards the appliances and systems covered by home warranties, you’re still saving a lot of money. If you’re spending $100 a month to repair the appliances usually covered by a home warranty, you’re spending $1,200 a year, or $600 to $900 more than you would if you had a home warranty to cover those appliances.

It’s also important to keep in mind that you’ll have to pay a service charge every time you file a claim and that those services charges typically land between $30 and $100 per claim. But again, even if you have to file a claim for three or four appliances per year, and even if you’re paying at the high end of the service fee spectrum, you’re still saving hundreds of dollars a year with your home warranty.

And finally, another number to keep in mind is 12, as in the number of months that most home warranty contracts last. If you sign up for a home warranty and you decide that it’s not the right investment for you, it’s easy to cancel the plan at the end of the first year. That’s why home warranty contracts are great for first time homeowners who may not know much about home maintenance and upkeep. They can purchase a home warranty to cover their appliances and systems right away. When they become more familiar with their home and how to maintain it, they may decide to forego the warranty in the future.

The numbers speak for themselves. A home warranty just makes financial sense. It’s not realistic to believe that you’ll never have to make repairs on your home appliances. You often rely on them on a daily basis, and that means that you need them to be ready and working at all times. A home warranty contract is a great way to ensure that you’re saving money on repairs and that your appliances are available when you need them.