Appliance Warranty is Insurance for Your Stuff

An appliance warranty is like a life insurance or auto insurance policy, but homeowners do not have to undergo the underwriting process. They only need to select the appropriate policy that covers the appliances they have in their homes. Find the best appliances warranty providers below!

A Warranty Is Like Insurance:

Home appliance insurance keeps costs down when the appliances within a home begin to malfunction. When the recession began, homeowners discovered that they were unprepared to purchase new appliances as soon as they stopped working. This meant that they were forced to pay hundreds of dollars each time they had these appliances repaired. Although this costs less than replacing them, it still adds up. If these homeowners had an appliance protection plan, they would have been able to have their appliances repaired or replaced at a fraction of the cost. Appliances that are covered in this kind of warranty may include:

  • Dishwasher

  • Range/oven/cooktop

  • Electrical system

  • Exhaust fan

  • Plumbing system

  • Door bells

Then, the company charges the homeowners a monthly or yearly “premium” that keeps the policy active. Furthermore, if you would like to cover your heating system or plumbing system, you may purchase a plan that includes these items for an additional cost.

How the Service Works:

When you notice that your dishwasher is not working as well as it once did, you will contact your home warranty company to report the problem. The company will send a technician to your home who will make the necessary repairs. If the appliance cannot be fixed, the item will be replaced instead. After the work is done, the homeowner only pays the technician the service fee.

How a Warranty Differs from Insurance:

As you have learned, an appliance protection plan is like insurance, but it is also very different from your home insurance policy. Unlike home insurance, a warranty will cover your appliances when they begin to fail due to wear and tear. This means that a warranty helps you pay for home maintenance, and this is a cost that can be very expensive. In general, homeowners spend between one and four percent of the amount that their homes are worth on repairs. For example, if your home is worth $300,000, it’s possible that you are spending thousands of dollars fixing your home appliances every year.

Home appliances often break when the homeowners are not expecting it, and they are not ready to confront the cost. With a home warranty, you will only spend between $1 and $2 to maintain a policy that will save you hundreds or even thousands of dollars each year. Protect your home, and save your money for the things you want to purchase by obtaining a home warranty today.

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