It is possible that you have heard about home appliance insurance, but you don’t know enough about it. To put it simply, this type of insurance covers the costs of repairs or replacements in case something goes wrong with some of your appliances or systems. Since this is still basically a vague explanation of what it is, we’ve decided to go a little bit more in detail about the whole thing, answer a couple of FAQs and perhaps help some of you if you are wondering whether to should get one or not. Let’s get started.
Is it different from a home warranty?
Since this is one of the most frequently asked questions, we’ve decided to start there. So, is it different from a home warranty? In a word – no. Both of these are insurance plans that protect your wallet in case something breaks down in your home. What this virtually does is, it covers all the little things your home insurance does not. It helps you reduce the costs of ‘minor’ repairs in your household. With a wide range of possibilities and insurance plans, it’s important to understand which will work best for you and your home.
What does it cover?
As we’ve already mentioned, there are numerous plans and options. From basic, standard plans that cover essentials to the more premium ones that cover virtually everything in your home. Here’s a list of some of the things that are covered.
- Air Conditioning and HVAC systems
- Washer and Dryer
Aside from those standard appliances, home appliance insurance can cover the costs of plumbing and electrical systems, lawn sprinklers, well pumps, garage doors and even pools. Upon finding the right plan, read the fine print to make sure everything you want to be covered is, in fact, covered.
What doesn’t it cover?
Just as it’s important to know what things are being covered, what’s not is equally important. once again, here’s a list.
- Appliances with pre-existing conditions determined during an inspection
- Faulty installations
- Items covered by an existing home insurance plan
- Items covered by an existing warranty
- Code violations
For more information about the plan’s limitations, you’d have to check directly with your insurance.
How much does it cost?
Just like with any other insurance plan, the cost of your premiums, meaning how much you will pay annually for your plan is dependent both on the insurance company and the level of coverage. On average, the annual cost of these plans is somewhere between $500 and $1000 – but it can be both higher and lower than that. Standard plans are usually somewhere in the vicinity of $500 a year.
Another thing that is important to mention when we’re talking about the costs is that sometimes there are additional fees that can affect your premiums. For instance, you could have a fixed fee that you have to pay every time a technician is called to evaluate the problem. That means that you would have to pay the fixed sum regardless of the severity of the problem. However, fixed fees usually mean lower annual premiums – so keep that in mind.
How to choose the right insurance plan
When it comes to choosing the right insurance plan, you have to be thorough. According to prominencesupport.co.uk, washing machines are one of the home appliances that are most likely to break and since we all know how expensive washing machine repairs can be – it pays to be thorough in your research.
5.1. Research different companies
Naturally, the first step you would take would be to do a little research and explore your options. Chances are, there are several options in your vicinity and you should aim to choose the best one. You can do research all by yourself or you could turn to outside help and ask for recommendations. Once you find out which companies offer services you need, you can proceed.
5.2. Compare the plans
The best way to compare the companies is to compare the plans they offer. The things to pay attention to when comparing is the insurance plans are – cost, different options that are being offered, additional costs, customer support and service technicians. Once you do this, you’ll have a clearer picture as to which company most closely matches your needs.
5.3. Make a List of your appliances
In order to easily choose the best plan for your needs, it’s advised to make a list of all the appliances and systems in your home that you want to be insured. That way, you’ll have a clear, visual representation of things you need to be covered and which plan to choose.
Pros and Cons
Finally, in order to make a sound decision or just fully understand everything there is to home appliance insurance, we need to take a look at both the positive and negative sides of it. Let’s start with the pros.
- Don’t worry about the age of the appliance. Once the manufacturing warranty ends, you can cover the same device with the new plan.
- It covers multiple items at once – which means you don’t need another policy
- In case an item breaks down and proves unfixable, chances are, you’ll get a brand new one.
- All of the potential costs and fees are known upfront, which means you can calculate every cost and see how it will affect your budget
- It’s up to you to choose whichever plan and level of protection you want
- It can save you a fortune in the long run
Now, let’s take a look at some cons.
- Repairs take precedence over replacements
- Premium coverage can cost you a lot of money
- You cannot choose a service technician
- Previously damaged devices cannot be covered
As you can see, the benefits of the home appliance insurance plan easily outweigh the drawbacks. After all is said and done, it’s hard to make a case for this being a bad idea. It clearly has the potential to save you a lot of money in the long run which is the whole point of it all.