Importance Of Appliance InsuranceAppliance insurance is a warranty that covers your major appliances and home systems. Discover the benefits and top appliance insurance options.
Purchasing a home is a complicated process, in no small part because you must also get coverage for your home. Unfortunately, home insurance does not cover everything inside of your home. In most cases, homeowner insurance only protects the physical structure of your house, such as damage to your roof. To cover the items inside of your house, including your expensive appliances, you need a separate insurance plan. Appliance insurance, also known as a home warranty, protects the items stored in your home.
With a home warranty, whenever one of your appliances is damaged, you can use the warranty to cover the costs of repairs or replacement. Purchasing appliance insurance can be tricky, since each insurance provider has different eligibility requirements, such as the types of appliances covered, monthly charges and how much assistance is available. While it may seem overwhelming, there are several tips you can use to make it easier to select the right appliance insurance for your home.
Pros and Cons of Appliance Insurance
For most homeowners, the biggest benefit of purchasing appliance insurance is peace of mind. Appliances are expensive, especially if you are buying a brand-new model to celebrate the purchase of your new home. Even if the appliance does not break entirely, repairs often cost hundreds of dollars, with larger appliances sometimes requiring several thousand dollars to fix. This is especially important when you first move in, as there may be issues with the home you are unaware of that cause damage to your appliances, such as unexpected plumbing issues.
One potential downside of appliance insurance is the wait time. It can take several days for your insurance request to process, leaving you waiting to get your appliance repaired or replaced. If you try to kickstart the process by paying out of pocket, your insurance provider may not compensate you for the expenses. Appliance insurance also does not apply to appliances with preexisting conditions. For example, if you purchase a new home and the realtor tells you the air conditioning is having issues, you will not be able to use your insurance to fix this issue if it is purchased after the fact. This is another reason many homeowners choose to purchase new appliances when they move into their home.
How to Purchase Appliance Insurance
Many homeowners first get appliance insurance when they are purchasing their home. Sellers often include a year of free appliance insurance as part of the sale to sweeten a deal. Most appliance insurance providers allow homeowners to transfer their insurance to a new owner after a purchase. Some providers will even reset the length of the plan. If the seller does not initially offer a home warranty, speak with your real estate agent to see if it is worth bringing up during the negotiations. Getting your first year free is an effective way to test out an insurance provider without having to commit any money.
After your first year, the cost of appliance insurance varies depending on the provider. On average, you can expect to pay around $300 to $600 each year. Most insurance providers have multiple plans available, with each tier covering a larger number of appliances or offering additional benefits. With repairs, there is often an additional service fee whenever you use your plan. These range on average between $50 to $75.
American Home Shield
American Home Shield is one of the largest appliance insurance providers in the United States. As of writing, it is available in almost every state, except Alaska. Part of what makes them a popular provider is the simplicity of their plans. Unlike other insurance providers, you do not have to read pages of information to find out exactly what is covered. American Home Shield has three plans available, with the prices varying slightly based on location.
The first plan is silver, which costs between $29.99 to $44.99 each month. A silver plan covers air conditioning, heating, ductwork, exhausts and vents, your main breaker, interior fans, plumbing and water heater. A gold plan costs $39.99 to $54.99 and includes kitchen appliances, garbage disposals, washers, and dryers, up to a maximum value of $3,000. The last plan, platinum, is $59.99 to $74.99 a month and includes roof coverage. Service fees vary between $75 and $125, no matter what your plan.
Liberty Home Guard
Liberty is another appliance insurance provider available in most locations, except for Washington and Wisconsin as of writing. Liberty has three separate plans, which are divided into appliances and systems, and one combination plan that covers both. The plans are quite similar in price, with the appliance plan costing $69.99 each month. It covers all your major appliances, such as washer and dryer, refrigerator, dishwasher, oven and fans. The systems plan is $74.99 each month covers heating, cooling, plumbing and electrical systems. The combination plan is $79.99 per month. The average service fees are between $65 and $125.
Cinch Home Services
Cinch has coverage in most states, except for Alaska and Hawaii. Cinch is a popular appliance provider because of their below average costs. Like Liberty, there are three plans available, one for appliances, another for systems and a final combination plan. The appliance plan costs between $39.99 and $55.99 each month and covers all of your major appliances. The systems plan is $44.99 to $62.99 and also extends to smaller, often overlooked systems, like garage doors, smoke detectors and sump pumps. The combination plan is $54.99 to $72.99 each month. While the average monthly costs are lower, Cinch has slightly higher service fees, costing between $100 to $150.
Choice Home Warranty
Choice is an excellent appliance insurance provider if you do not want complicated plans. There are only two base plans available. The basic plan, which starts at $45 per month covers the majority of appliances, such as your plumbing system, oven, water heater and electrical system. The total plan starts at $53.33 monthly and offers additional coverage for your washer, dryer, refrigerator, and air conditioning. There are additional add-on plans to cover other systems, such as your pool, roof, or septic tank.
Adding Home Insurance
Home insurance, also known as homeowner's insurance, is a type of insurance policy that provides coverage for damages and losses to an individual's home and its contents. The policy can cover different types of risks, including fire, theft, and natural disasters like hurricanes or earthquakes. Home insurance policies can vary in coverage and cost, depending on the location, size, and value of the home, as well as the type of policy and deductible chosen by the homeowner. In general, home insurance policies offer protection for the physical structure of the home, personal belongings, and liability coverage if someone is injured on the property.
Home insurance is an essential investment for homeowners who want to protect their property and assets. In the event of a disaster or accident, having home insurance can provide peace of mind and financial security. Without insurance, homeowners may face significant financial losses and struggle to rebuild or repair their home. Additionally, many mortgage lenders require homeowners to have insurance as a condition of their loan, making it a necessary expense for many homeowners. When choosing a home insurance policy, it's important to consider the level of coverage needed, the cost of premiums, and the deductible that works best for the individual's budget and needs.