A Basic Guide For Home Warranty, Home Insurance And Manufacturer’s Warranty

guide home warranty homeowner insurance manufacturer warranties appliance coverage

Home appliance insurance, which is also called as the home warranty, is an extended or optional service contract that secures the majority of appliances and systems in your home when they breakdown. Some commonly covered home appliances include- dishwashers, dryers, refrigerators, cooking stove tops, oven as well as washing machines and garbage disposals. Many of them are being used on a daily basis, sometimes multiple times a day. Hence, there is a possibility that these home appliances could break down either unexpectedly or from general wear or tear. 

3 Major Home Protection Plans

There exist three types of home protection plans that can cover the expensive repairs and replacements of home appliances- Home warranty, Home Insurance and Manufacturer’s warranty. This article depicts everything that you need to know about all the three types, from coverage and inclusions to cost of the plans and best home warranty companies. Therefore, choosing the right consumer electronics insurance plan can be a vital step for you.

Home Appliance Insurance 

A home appliance insurance is an annual service contract that protects you from paying excessive repair and replacement costs, in the event that a home system or any appliance breaks down due to normal wear and tear. Instead of the total cost to repair or replace any appliance, you will be charged a small amount of service fee to the professional serviceman your home warranty provider sends. Well, a home warranty saves you thousands of dollars for a long period of time. 

Manufacturer Warranty Versus Home Appliance Insurance 

A manufacturer’s warranty is a warranty from an appliance manufacturer such as Samsung, Whirlpool, Frigidaire and many more. It is a guarantee given by them that their product will perform as advertised and for a specific amount of time, typically one year or a two. However, a few manufacturers may cover expensive parts like –a motor, for a long period of time. In the event that you need to cover an electronic or a particular home appliance, you will have to register your item at the time of purchase to activate your warranty. The manufacturer will outline the process for you to follow in the case that a covered appliance needs servicing while it is under warranty period. 

Home Owners Insurance Versus Home Appliance Insurance 

Coming to homeowners’ insurance, it basically protects your home in the event of theft, robbery or natural disasters like fire or cyclones. Unlike Home appliance insurance, homeowners’ insurance is required by home loan banks before you can close on a house. Homeowners insurance covers structural and property damage in the instance of risks, liability if someone is harmed on the property, property loss through damage or robbery and a momentary housing cost if your home ends up appalling because of damage or disasters. 

What Is Covered Under Home Appliance Insurance? 

Typically, home appliance insurance covers only items that have broken down due to normal wear and tear. Most of the home warranty providers have 3 levels (plan) of coverage i.e. a basic plan covering the major appliances and/or systems, a moderate or enhanced plan including coverage for additional items such as clothes washer, a bathtub or a dryer. And an optional add-on for special features like a guest house or its facility. 

Some other plans include total home protection plan that provides coverage for 17 of your household appliances regardless of age and coverage for your choice of four major household systems. 

Does Homeowner’s Insurance Cover Your Home Appliances? 

Your home appliances are covered under the homeowner’s insurance in the event they are damaged or destroyed on account of any risks named by your insurance policy and not normal wear and tear. Such risk and perils include unpredicted emergencies like theft or natural disasters such as fire, lightning or cyclones. In the event that lightning strikes your home and electrical systems, it is covered under your homeowner's insurance and not the home warranty. Moreover, if your 20 years old refrigerator breaks down, you will call your home warranty provider. 

Typical Home Warranty Coverage 

Following are some common home appliances that are typically covered under Home appliance insurance: 

• Water heater 
• Dishwasher 
• Clothes washer 
• Clothes dryer 
• Microwave / Oven 
• Refrigerator 
• Furnace 
• Cooktop / Range / Stove 

Cost Of Home Appliance Insurance Coverage 

Contingent upon the type of coverage you buy, a typical home appliance insurance plan can cost in the range of $26- $68 per month. For increasingly extensive plans that cover additional items like the second refrigerator, you can expect to pay upwards of $50 every month. Moreover, at whatever point you contact the warranty provider for servicing, you will likely pay a trade service charge, or service call expense, that ranges between $70- $120. 

Ultimately, the general expense of your home appliance insurance will rely upon the company you buy the coverage from, the plan of coverage you buy, and where you live. 

(Note: The size and age of your home, appliance, and systems should not affect inclusions or costs except if you live in a brand new home, which ought to be secured by a manufacturer's warranty, or a house that is bigger than 5,000 square feet) 

Are The Home Warranties Worth The Cost? 

Truly, the home warranties are worth the cost. The customers could spare a large number of dollars. You possibly pay a service charge of approximately $60 for a $1,400 repair or a fresh brand new appliance. 

In addition to financial savings, the home warranties or home appliance insurance gives a peace of mind. 

How Home Appliance Insurance Works

Most of the home appliance insurance providers aim to appoint the service within 48 hours of filing the claim; in any case, this procedure can take longer on ends of the week and holidays. Also, it is up to the home insurance company to choose whether your case is an emergency. Take a look at the following procedure for home appliance insurance coverage: 

1. Initially, call your home warranty company OR file the claim online. Do take note of that some claims might not be accepted if the appliance or system isn’t secured by your plans or was liable to code violations, inappropriate installation, or common wear and tear. 

2. Once the claim is approved, the home warranty organization will procure a nearby contractual worker to make an assessment. 

3. The serviceman will call you to schedule an appointment either to replace or repair your broken system / appliance. 

4. You will pay a little trade service charge to the home warranty company for sending a contractual worker to your home. Before you buy a plan, ask them whether you will be charged a service fee for each visit. 

5. Once an appointment is scheduled, the service provider analyzes the issue amid a home visit and suggests either a repair or replacement. 

Final Thoughts 

In conclusion, a home warranty gives homeowners access to an entire system of local professionals. When you file an insurance claim, your home warranty supplier is in charge of scheduling an appointment with a nearby and authorized local contractor in your area. 

While home appliance insurance is not mandatory. But it gives homeowners a peace of mind against exorbitant fixes and substitutions. It's a given that home appliances and the system will wear out and break after some time, so it is suggested to get a home appliance insurance for anyone who owns a home. 

Author Stephen Jones is a full time blogger living in Texas and currently working for EverythingBreaks.com i.e. Consumer Electronic Warranty Provider Company, which also offers total home protection plan. He is very passionate about his work, a big fan of technology, and likes to write on various business niches.

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