Appliance Insurance and Home Warranties

From LoveToKnow Insurance

Appliance insurance and home warranties can both be fantastic safety nets for consumers to have. Appliance insurance protects specific appliances within the home while home warranties cover a variety of appliances in addition to other aspects of the functions of the home.

Appliances

Safeguard the Home

Appliance insurance and home warranties can offer peace of mind for homeowners who have no landlord to call when something breaks down. This is indeed one of the costliest aspects of owning a home; when something breaks down, it is the owner who needs to shell out the money for the repair or replacement of the appliance. When the manufacturer's warranty expires, appliance insurance and home warranties can step in and cover unexpected expenses.

Appliance Insurance

Appliance insurance can be purchased directly from the appliance manufacturer or retailer in the form of an extended warranty, or can be obtained as a separate policy from an appliance insurance company. Typical appliances covered by appliance insurance policies include, but are not limited to:

  • Kitchen appliances: Dishwashers, refrigerators, freezers
  • Electronics: Computers, cameras, televisions
  • Miscellaneous appliances: Vacuum cleaners, lawnmowers, washing machines

For just about every appliance within the home, there are insurance companies willing to insure it specifically.

Homeowners insurance and renters insurance will usually cover everything within the home, including all the appliances within the home. In some instances, however, people seek out additional coverage for particularly expensive appliances to make sure they are fully covered. It is not uncommon for people to take out additional insurance coverage on home computers or other costly electronics above and beyond their existing coverage.

Home Warranties

Home warranty insurance offers broader coverage throughout the entire home. For a monthly or annual fee, the entire home is covered with the exception of certain exclusions at the discretion of each individual home warranty company. Depending on the scope of the home warranty, there may or may not be a deductible amount to pay with each visit from the home warranty service personnel.

For example, while some companies may have home warranty policies which provide visits from service personnel at no charge, other companies may charge hefty service fees for a mere visit with additional fees charged for repairs or special materials needed for the repair. It is important for customers to realize what their home warranty covers so they are not surprised by unanticipated fees and charges for a service visit.

Home warranties are often attached to homes which are put on the market for sale as a way to ease buyers' worries about everything in the home breaking down once the closing documents are signed. Buyers should not assume that a home warranty automatically means a home will be a worry-free purchase. Buyers who inherit a home warranty with the purchase of a home should take the time to review the details of the service contract so they can be sure to understand what is covered under the warranty and what is not.

Home Warranty Companies

Various companies offer home warranties, including:

There are plenty of other home warranty companies available. A quick Internet search will yield several suitable results.

The Appliance Insurance and Home Warranties Decision

A home packed full of expensive electronics and other appliances is a prime candidate for additional coverage, whether it is through appliance insurance or a home warranty. Many people simply enjoy the peace of mind which comes with additional quality coverage, and this is certainly a valid reason to seek out additional coverage. Policy buyers need to make sure that they read contract information thoroughly to make sure that the money they are spending is a good investment.


 


Comments

Maureen, the answer depends on if you are dealing directly with an insurance company or if you are dealing with a warranty provider or home service agreement company. Your best bet is to pull out the original agreement and find out if you agreed to purchase replacement products through the warranty provider. You may find that you signed a contract stating that you agreed to this arrangement beforehand.

-- Contributed by: Tamsen Butler

My washing machine broke down recently it is covered by insurance but because it is six years old I only get 40% of the value to purchase another. I can get it through the insurance company but it will cost me more than if I replaced it by purchasing a new one on the internet. The insurance company seem to be unwuilling to re-imburse me the money to do it this way and imply I have to do it through them at an inflated price so it would seem to me recoupes any money they would have paid out surely this is not right and surely I am entitled to look for the best deal I can get and am entitled to be re-imbursed the agreed money they owe me. Am I entitled to this payment and are they just trying it on so that it I end up paying an inflated price to cover their costs.

-- Contributed by: maureen jones

Cathy,

Frequently the warranty renewal function is done by phone because it is less expensive than sending a written renewal notice. It is possible that a written renewal notice is not even available for your account - which could be the reason that customer service was unwilling to mail or fax you a renewal notice. If you have decided not to renew your warranty, you might consider writing a letter to customer service telling them them that you will not renew over the phone. They might consider making an exception and send you a written renewal notice.

Thank you for your question.

-- Contributed by: SusanWeber
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