Why Choose a Home Appliance Warranty?

If you own a home, you might be worried if anything in your house breaks or get destroys, because you don't have a landlord to come fix those things. You may have heard of homeowner's insurance, but what about home appliance warranties? Read more to find out.

Repairs are an inevitable part of living in a home, regardless of whether you are a homeowner or renting.

 
Appliances break, faucets leak and HVAC units can stall in the middle of a heatwave. You can purchase home warranties to protect your appliances and systems rather than depleting your savings on the unexpected and unplanned costs of repairs.

 
Are home warranties worth it, especially if you take care and look after your appliances?

 
What Is a Home Warranty?

Home warranties provide discounted repair and replacement services for covered household appliances and systems. Contract terms vary, and coverage depends on the type of warranty you purchase.

 
Don’t get home warranties confused with Homeowners insurance.

 
Homeowners’ insurance protects against damage to private property and the home’s structure, such as accidents, fire, damage, and theft.

 
Home warranties complement home insurance. Most plans cover major components of home systems, such as your HVAC, water heaters, plumbing and electrical. Some plans also cover appliances such as washers, dryers, refrigerators, and stoves.

 
You can also purchase optional add-on coverage for your spa, second refrigerator, swimming pool, pumps, septic systems and more.

 
How Does a Home Warranty Work?

 
You pay a monthly or annual fee for a home warranty. During the contract term, you get a fixed service call fee and annual coverage limits for any repairs required. The service fees and coverage limits vary between companies.

 
When a home system or appliance breaks down, you file a claim online or contact your customer service team. They connect you with an approved repairer who will come to your home to assess the problem and perform the repair.

 
What Don’t Home Warranties Cover?

 
Home warranties will cover the cost of repairing many appliances and household systems up to your policy limits.

 
Common items generally excluded are:

• Structural issues in foundations, walls, paint and flooring
• Commercial-grade equipment or systems
• Pre-existing conditions
• Normal wear and tear
• Rust, corrosion, and sediment problems
• Improper maintenance, installation, design, manufacturer defect or previous repairs outside of the contract
• Detection and removal of asbestos, radon gas and mold
• Building and zoning code violations

Home warranties protect you against unexpected expenses.

 
How Much Is a Home Warranty?

 
The average monthly fee for home warranties is between $25 and $50 and is usually a 12-month contract.

 
Advantages of a Home Warranty

• Peace of mind for those with used appliances and older systems
• Convenience – immediate access to trusted professionals.
• No DIY skills or tools needed
• Relatively inexpensive

 Disadvantages of a Home Warranty

• Set coverage limits per repair and a limit to claims per year
• Service call fees for every incident usually range from $50 to $75
• Check the fine print - claims can be denied if an item has not been properly maintained and how can you show proof of maintenance?
• Less control – the warranty company decides whether to fix or replace
• You might never use it.

 Should You Buy a Home Warranty?

 
This can be a good option when combined with your home insurance or if you have older appliances and systems.
But keep in mind that if you purchase a new appliance system, these will usually already come with manufacturer warranties, as will appliances and systems in a new home.