Are Home Appliance Warranty Plans Worth Buying

Do you have trusted appliances that no longer work, lying around your home? Have they been gathering dust the past dust past few years but you don’t want to replace or give them away? Then there is no other option besides repairing or replacing them with new ones right? Fret not! This article will shed some light on how to insure your household appliances against potential breakdowns.

Difference Between A Homeowners Appliance Warranty And Appliance Insurance Policy

Let’s begin by comparing homeowners’ Warranty from the major Appliance Insurance Policy. The primary difference between the two is that Home Warranty covers repairs and replacements of failed appliances and systems, while the insurance on home appliances covers damages caused to your home and its content by natural hazards or theft. This is why you need to read this guide about how to buy a home.

You can always find a contractor to repair your damaged appliances. Invariably, the costs involved in such scenarios are rather high. The other option that you have is to apply for a Home Warranty plan. This is also called home appliance repair insurance. Remember to determine the home appliance insurance cost before you buy into your product and read appliance warranty reviews.

image of a person thinking if home appliance warranty plan are worth buying

What Is A Home Appliance Warranty Plan?

The Home Warranty Plan is a contract of service. It covers repairs and replacement of appliances and systems in your home. The annual premium for the Home Warranty plan can range anywhere between $250 to $450. Each time you contact a warranty company for a service, you pay a service fee usually called the deductible. This is around $50.

What Kind Of Plans Are Available And Do I Actually Need Them?

Let me clear the former first. You have two options, you can either avail an extended warranty for each appliance. Or you can get a Home Warranty which covers all your appliances. You should get a Home Warranty on appliances as buying an Extended Warranty for each appliance is not ideal. A Home Warranty is highly useful if your appliances are over four years old.

However, choose an Extended Warranty if your home and the appliances have a Manufacturer’s Warranty. By now, you will know the difference between a Home Warranty and a Homeowners Insurance

So How Does Home Warranty Work?

The company offering Home Warranty Plans often signs contracts with vendors offering repair services to appliances. If you approach your warranty provider with a claim, they call up repair facilities. They, in turn, send a technician to evaluate the condition of your appliance. He shall decide if your appliance needs to be repaired or replaced. Service charges(deductible fee) of the technician shall be paid by you and they are always nominal.

Things To Know About Appliance Protection Plans

Is Appliance Insurance Worth It?

There are a few hiccups that you may encounter:

Home warranty plans are a way to ensure security and to reduce maintenance costs. They don’t provide blanket coverage nor do they pay for pre-existing issues. All companies do not offer the best customer service. Make sure that the home warranty company you choose comes with high recommendations. Ensure that you read the contract for Home Warranty on appliances thoroughly. This ensures that conflicts do not arise later.

Home Warranty companies opt for repairs rather than replacement of the damaged appliance. Further, the waiting period for this is also considerably longer in some cases. Worst of all, claims are sometimes rejected on unclear grounds. Also, it could be rejected by bringing up small clauses from the contract that are often overlooked by the customers. You should read your contract carefully. Have it looked over multiple times, and pay attention to the monetary factors.

Should I Get Appliance Protection?

Despite the issues, you should get a Home Warranty Plan to insure your appliances. Costs incurred during repairs and replacements can be considerably reduced. All you need is a sound Appliance Protection plan. Also, you should sell your home with a valid home warranty. A home warranty on appliances will increase the value of the property. Most buyers recommend strongly in favor of Home Warranty plans. You are likely to do the same if your choice of home warranty provider is good.

Benefits Of A Home Warranty

Here is the summary of benefits you shall have if you avail a Home Warranty Plan:

Confidence: This is something that can rarely be bought with money. Home Warranty Plans provide you with a tension-free life. They relieve you from worries about unexpected expenses occurring due to damage to your appliances.

Broad coverage: A home warranty contract will cover almost all your appliances and systems.

Affordable prices: The annual premium, as well as the deductible you pay, are both affordable to an average U.S. citizen.

Budget protection: If you just bought a new home and spent on landscaping and drapes. Then, the first year in your new home is not the ideal time. You are due to expect financial drains due to faulty appliances.

Lawsuit avoidance: You should sell your home when the home warranty on appliances are valid. The home warranty company will take care of any appliance that sustains damages. If an appliance is not covered, the buyer might sue the seller.

We remind you again that reading the contract well is of utmost importance. You can get a free estimate on home warranty from top-rated companies on our website before you purchase the plan.