Appliance Extended Warranty, also known as home appliance insurance, covers the cost of repairs when a covered major appliance breaks down. They are usually more affordable than bundled home warranties, but they offer different coverage terms and conditions. Purchasing an extended appliance protection plan requires careful consideration. Learn more about the types of coverage and other terms before making a purchase.
Coverage Options
Home appliance insurance plans (also known as extended warranty, service protection plan and/or home appliance insurance) provide coverage beyond an item’s manufacturer warranty. These policies can save you from paying costly repair bills after the manufacturer’s warranty has expired or is no longer valid. They often offer experienced, pre-screened service technicians that can quickly fix your appliances when they break down. An extended warranty can be a wise investment when you have multiple older devices in your home, especially those that are expensive to repair or replace.
Keep in mind, these warranties are typically not available to renters. A homeowner needs to purchase and carry a home appliance warranty in order to get these services. Some providers offer a flat up-front price, while others require monthly or annual premiums. It’s important to read the contract carefully and compare providers before making a decision. For example, some providers have coverage limits on specific appliances, requiring homeowners to pay any costs that exceed these limits.
Warranty Lengths
Appliance Extended Warranty are a convenient way to get protection beyond the standard manufacturer’s warranty. The terms of these warranties vary, but they usually cover breakdowns due to manufacturing defects for a set period. They may also require that you follow a routine maintenance schedule or use certain service providers to avoid voiding the warranty. Most new appliances come with a manufacturer’s warranty that covers repair or replacement costs for the first year after you purchase them. If you plan to move within the year, or if the manufacturer’s warranty ends before you need a repair, an extended appliance warranty can provide peace of mind.
Appliance extended warranties cost money, but they can save you from paying for hefty repairs or replacements. They can also help you save time by connecting you with pre-screened service technicians. Check with your credit card to see if they offer appliance protection plans as a perk. These might be less expensive than a bundled home warranty, but they will probably exclude major repairs.
Deductibles
Most extended warranties have a service deductible that you must pay when your appliance breaks down. This deductible is usually much lower than the cost of repairing or replacing your appliance. While the price of an extended warranty varies, many people find it worth the peace of mind that comes with knowing they don’t have to foot the bill for major repairs. However, this coverage isn’t right for everyone.
If you’re deciding whether to purchase an appliance extended warranty, carefully consider each provider’s pricing and plan options. It’s also important to read the service contract thoroughly. This document outlines each warranty company’s policies and terms, including coverage limits, exclusions and other important information. Some of these contracts may outline maintenance requirements or require you to use specific repair technicians, which can be inconvenient if you aren’t familiar with those providers. Ask your local home appliance store for recommendations and request quotes from several providers. This helps you narrow down your options and make a confident decision.
Exclusions
Home appliance insurance, also known as appliance protection plans or service contracts, are a type of home warranty that offers coverage for specific appliances. They are typically sold by retailers or third-party companies as an add-on to a new appliance purchase. They offer similar terms to the manufacturer’s warranty, but extend the coverage for a period of years. These warranties can be a good option for consumers who want to protect an expensive purchase against breakdowns, but they don’t offer the same perks as a bundled home warranty plan.
Both types of coverage can reduce out-of-pocket repair costs, connect homeowners with experienced service technicians and prevent expensive repairs or replacements. However, they each have different pros and cons, including cost, coverage limits and availability. Many extended appliance warranties exclude pre-existing problems, and some may void coverage if the appliance is not installed correctly or shows code violations. These limitations make these plans a less desirable alternative to a full home warranty policy.
Conclusion
Appliance Extended Warranty home appliance insurance is a type of service contract that adds on to the manufacturer’s warranty for your appliances. They are sometimes also called protection plans or extended warranty policies. These service contracts typically offer coverage of functional parts and labor for an extended period after the manufacturer’s warranty expires. But their fine print may include terms that could void the coverage.
