Everything you need to know about homeowners appliance insurance
A homeowner’s appliance insurance is also referred to as a home appliance warranty or home warranty plan. It is a type of insurance policy that covers the expenses of maintaining and repairing all home appliances. Such types of policies offer coverage for the complete wear and tear of important appliances in your household. It is important to select the best homeowner’s appliance insurance policy that fits your precise needs.
What is a homeowner’s appliance insurance?
A homeowner’s appliance insurance provides coverage for the cost of maintaining, repairing or replacing appliances or systems in your home. Unlike the regular homeowner’s insurance, home appliance cover does not safeguard you from specific dangers, but it rather protects the appliances against routine breakdown and deterioration.
The specific type of appliances that are included in the cover depends upon the precise homeowner’s appliance insurance policy that you have taken. Some of the most common appliances and devices that are potentially covered under such policies include:
- Heating system
- Air conditioning system
- Plumbing system
- Clothes washer and clothes dryer
- Refrigerator
- Oven
- Garbage disposal
- Television
- Cooktop
- Built-in microwave
- Dishwasher
- Ceiling fan
- Electrical circuit system
- Ductwork
- Well pump
- Sump pump
- Septic tank
- Swimming pool system
- Spa
- Lawn sprinkler
- Vacuum cleaner
Different companies offer different types of appliance insurance. Sometimes, these policies are divided into separate categories; one that covers appliances (standalone items such as television, refrigerator, and vacuum cleaner) and the other one that covers systems (things that are spread across the home, such as heating and cooling systems, and plumbing system).
Additionally, some systems or appliances, usually the ones that are at a greater risk of breaking down, are included at higher costs, such as sump pumps, swimming pools, etc.
What is the cost of a homeowner’s appliance insurance?
The exact cost of a homeowner’s appliance insurance plan depends upon the insurance company you have chosen and the level of coverage. Roughly, this type of insurance policy can cost you anywhere between $350 and $1,000 per year. If you opt for higher coverage or cover more appliances, then the cost of the premium will also increase.
It is important to note that most of the appliance insurance policies charge a specific amount of fee every time you seek repairs. For instance, if your vacuum cleaner breaks down and you call your insurance contractor to check the problem, you will have to pay a certain amount of fee, regardless of what the final outcome of the damage is. It is advisable to check this fee in advance before signing up for any homeowner’s appliance insurance policy.
Benefits of homeowner’s appliance insurance
The greatest benefit of getting appliance insurance is peace of mind. If anything breaks down or deteriorates, you know that an expert will come to take care of the problem. For this reason alone, a homeowner’s appliance cover is considered to be largely beneficial for new homeowners, who are not very conversant with the home systems.
Secondly, this policy is also good for those who have budget constraints or simply like to stay on top of their game with their financial planning. By getting a home appliance warranty, you decrease the risk of encountering unanticipated costs. You will be aware of your yearly premium costs in advance, which will give you a substantial amount of flexibility in handling the unexpected.
Challenges associated with a homeowner’s appliance insurance
The most evident challenge of a home warranty is that not everything is insured. Thus, you need to carefully go through the policy papers to find out the details. Most warranties do not provide coverage for items that have not been “adequately maintained”. The term is very subjective and may sometimes result in disputes between the customer and the insurance agency. Even if every appliance in your household works well without necessitating any repair, the premium still needs to be paid fully.
Things to consider while purchasing a homeowner’s appliance insurance
While purchasing a homeowner’s appliance warranty, every individual has different requirements. Thus, it is advisable to conduct research on the various policies available and study the reputation of different companies to make the best decision. Here are some points that must be kept in mind while making a purchase decision:
- Choose a policy that covers your specific home appliances
Any home warranty plan that offers coverage for devices and appliances that you don’t have is no good to you. So, make a list of the appliances you have at your home and try to choose a policy that is closest to your needs. Remember, most policies come in a pre-defined package. If you live in a small home with minimal appliances, go for an individual warranty plan rather than a comprehensive policy. - Know the limits of home appliance policies
Even when your policy covers a particular appliance, its repair or replacement may only be covered up to a certain extent. So, it is important to clearly go through the policy documents to understand how much coverage you are getting as a part of the insurance. - Evaluate the risk of your appliances malfunctioning
You need to assess how much risk your appliances are prone to. For instance, if you are living in a new home with new equipment, you don’t have to necessarily invest in a homeowner’s appliance insurance. This is because newer appliances are much less likely to break down. On the other hand, if you are living in an older home with aging appliances and warranties, then purchasing a good home warranty plan is better.
Finally, all the major appliances in your home won’t last forever. Eventually, they will break down and suffer wear and tear. So, if you wish to keep these appliances protected and running for a longer duration, you must purchase a homeowner’s appliance insurance. You can easily come across a number of insurance agencies online that offer different types of policies to effectively cover your home equipment and systems.
