What is Appliance Insurance?

An appliance insurance plan covers the costs of repairing or replacing an appliance. Most people have appliances in their home that are costly to repair or replace, which is why they opt for appliance insurance.

 However, do not confuse home appliance insurance with a home warranty plan, as they are two different types of coverages though it is common for a home warranty plan to also cover applianced. Appliance insurance is a stand-alone plan covering your appliances.

The Difference between Home Appliance Insurance and a Home Warranty Plan

In a home appliance insurance plan, you buy coverage for each appliance. The price of the coverage depends on the duration of the coverage plan you are interested in and the cost of the appliance. It covers the functional parts, labor, and normal wear and tear that occurs with time.

In a home warranty plan, you can buy coverage for all the appliances you have at home. The cost of the plan depends on the amount of coverage you require. It protects all the appliances and systems from the usual wear and tear.

The Different Appliances Home Appliance Insurance Covers

Home appliance insurance covers appliances and systems that have malfunctioned due to wear and tear. However, it does not provide coverage for pre-existing issues with your appliances and systems. For this reason, before you sign a contract, you should check for exclusions and limitations to determine what the plan covers and does not cover.

The following is a list of the common systems and appliances your home appliance insurance covers:

  • Air conditioning
  • Built-in microwaves, cooktops, and ovens
  • Dishwashers
  • Dryers and washers
  • Electrical system
  • Garage door openers
  • Garbage disposals
  • Heating
  • HVAC
  • Plumbing
  • Refrigerators
  • Trash compactors

You can ask your insurance provider if they offer additional coverage that extends to personal spas, hot tubs, and swimming pools.

The Exclusions and Limitations on Home Appliance Insurance

Some home appliance insurance plans will set a limit. For instance, your plan may pay to repair your fridge, but if it costs more than its set limit, you will have to pay for the rest out of pocket.

Check with the provider to see what limit they have set for you. If you need more than the set limit, you can switch to another provider or ask them if they can increase the limit for an additional fee.

The Cost of Home Appliance Insurance

Home appliance insurance will cost anywhere from $250 to $500. If you want a more comprehensive home appliance insurance plan that covers more items in your home, you can expect to pay $600 or more. In addition to this, you might have to pay a trade service fee, ranging anywhere from $50 to $75. The overall cost of your plan will depend on the type of coverage you buy, where you reside, and the insurance provider (such as American Home Shield) you choose to buy from.

Home appliance insurance is recommended for anyone who owns appliances and systems, especially first-time homeowners. If you are searching for an insurance provider to buy appliance insurance from, ask for feedback from friends and family. Alternatively, you may also read up on reviews online left by users for various insurance providers and then decide accordingly.

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