Home appliance insurance works as a type of service contract that guarantees appliance repairs or replacements if covered items break down during the outlined contract period. When an appliance in your home stops working correctly, you call your appliance insurance provider, who sends out a technician to diagnose and repair the problem.
If the technician deems the appliance to be broken beyond repair, he or she arranges for a replacement to be installed in your home. If your appliance is covered by your insurance, all you’ll pay is a small service fee (typically less than $100) no matter how much work your appliance needs.
Home appliance insurance is sometimes sold alongside coverage for your home’s systems (HVAC, plumbing, electrical, etc.) in a package called a home warranty.
The specific appliances that are covered under your insurance depend upon the specific plan you choose. Most appliance insurance plans include major appliances that are costlier to repair, like your washing machine, dishwasher and cooktop. Some plans also include more obscure appliances, like your doorbell or ceiling fans, for an additional fee.
If you want insurance only for a specific small appliance (like a fancy blender or food processor), you may want to consider a manufacturer’s warranty from the maker of the appliance, which almost always costs significantly less than insuring all of the major appliances in your home.
Make sure you read your insurance policy before you sign on with a provider so you know exactly what’s covered under your plan.
Note that most appliance-only insurance plans don’t include coverage for pools, air conditioning systems, garage doors and septic systems. If you’d like these to be covered as well, you may want to consider purchasing a full home warranty.
By Sarah Horvath
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